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

When dealing with residential real estate in Montana, there are two important documents related to property ownership: a title search and title insurance policy. A title search is a process to check the title of a property to make sure it is legally owned by the seller. The title search also looks for any liens, encumbrances or other claims against the property that may invalidate the transfer of the title. A title insurance policy is a separate document that protects both the buyer and seller in the sale of a residential property. The policy guarantees that the title is legally owned by the seller and that it is free from liens, encumbrances, or other claims that could invalidate the transfer of title. The title insurance also provides financial protection to the buyer against any losses due to a title defect. In summary, a title search is a process to validate that the seller is the rightful owner of the property and that the title is free from any legal claims. A title insurance policy is a separate document that provides financial protection to both the buyer and seller in the event of any title defect.

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

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