What is the difference between a title search and a title insurance policy?

A title search and a title insurance policy are two related but different concepts in residential real estate law in Illinois. A title search is a process that involves researching public records to verify that a particular individual or business has legal authority to sell a piece of property. It is conducted to ensure that the seller is the legitimate owner of the property. More practically, it makes sure that there are no liens, unsettled debts, or other legal claims on the property that could prevent the seller from transferring ownership. Title insurance is a form of insurance policy that protects the buyer and the lender. Buyers often use title insurance to protect themselves against any hidden liens or claims from unknown parties. Lenders use it to make sure their security is protected in case something comes up with the title of the property during the loan process. In short, a title search verifies that the seller is the legitimate owner of the property, while a title insurance policy is a form of insurance that protects both the buyer and the lender if something does come up during the title transfer process. Both are important steps in the residential real estate process in Illinois.

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What is the difference between a title search and a title insurance policy?

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