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 Massachusetts, title insurance is a common safeguard for real estate transactions. It provides protection to the policyholder against legal challenges to the ownership of the property and covers any financial losses due to title defects that were not discovered during the initial title search. Title insurance is typically issued after a title company conducts a thorough examination of public records to verify the seller's right to transfer ownership. The title company then issues a policy to the buyer, which can protect against various issues such as liens, encumbrances, or fraud related to the property's history. Massachusetts does not mandate the purchase of title insurance, but it is highly recommended and often required by mortgage lenders to protect their interests in the property. The cost of title insurance can vary and is usually a one-time fee paid at closing.