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 Maryland, title insurance is a critical component of real estate transactions. It serves to protect the policyholder from financial loss due to defects in the title to the property, such as liens, encumbrances, or title defects that were not discovered during the title search. Title insurance policies are typically issued after a thorough title search has been conducted by a title company to ensure that the title to the property is clear. The policy provides coverage for legal defense against claims and pays for any covered financial losses. Maryland law requires that title insurance rates and policy forms be filed with the Maryland Insurance Administration. Consumers have the right to choose their own title insurance provider and are encouraged to compare rates and services offered by different companies. The state does not mandate a set fee for title insurance, allowing prices to be competitive and negotiable.