Title insurance insures, defends, indemnifies, and protects the policyholder against claims or losses arising from a defect or claim against the title to real property. Title insurance is usually issued to the buyer of real property by the title company that conducted the title search.
In Delaware, title insurance is a contractual arrangement that protects real estate buyers and lenders from financial loss due to defects in a property's title. The title insurance policy ensures that the policyholder has a clear title to the property, free from any legal claims such as liens, encumbrances, or defects in the title. It also provides for the defense against lawsuits challenging the title and covers the insured for any losses incurred as a result of title defects. Title insurance is typically issued after a thorough title search has been conducted by the title company to uncover any potential issues with the property's history. The one-time premium for title insurance is paid at the closing of the real estate transaction. Delaware state statutes and regulations govern the licensing and practices of title insurance companies, ensuring that they comply with consumer protection and real estate transaction laws.