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

A title search and a title insurance policy are both related to residential real estate law in Iowa. A title search is a detailed review of the public records related to a property, for the purpose of confirming that the seller is allowed to transfer ownership of the property to the buyer. During a title search, the title company examines government records and historical documents related to the property, to assess whether any prior liens, encumbrances, or other legal claims against the property exist. A title insurance policy is an insurance policy underwritten by an insurance company, which provides protection to the buyer and the lender, in the event that any legal issues regarding the ownership of the property are found during or after the title search. The title insurance policy generally covers legal expenses for claims resulting from forgery, unrecorded debts, or other undisclosed title problems. In summary, a title search is a thorough investigation into the public records related to the property, while a title insurance policy is an insurance policy that provides additional protection from unknown issues that might be revealed during the title search.

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

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