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

A title search and a title insurance policy are two different things when it comes to residential real estate law in New York. A title search is an investigation done by a title company or an attorney to determine the legal status of a piece of property, usually by looking up deeds, tax records, and other documents related to the property. A title search helps identify any potential issues that may be associated with the property such as liens, encumbrances, or other ownership disputes. A title insurance policy is an insurance policy that offers protection in case the title search misses an issue that could cause the buyer to lose the property. It is usually paid for by the buyer at closing. It often covers costs associated with legal defense, court costs, and even the cost of the actual property if the new owner loses it due to a title defect. Title insurance is meant to protect the buyer from losing their down payment, closing costs, and any mortgage payments that may have been made in the event of a title issue. Both the title search and title insurance policy are important when it comes to residential real estate law in New York. A title search helps identify any potential issues that may arise in the future, while the title insurance policy offers protection in case anything slips through the title search.

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

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