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 North Dakota, title insurance is a form of indemnity insurance that protects the holder from financial loss due to defects in a title to a property. The North Dakota Century Code (NDCC) regulates title insurance under Title 26.1, specifically Chapter 26.1-02.1, which outlines the provisions for title insurance companies. These regulations include licensing requirements for title insurers, standards for title examinations, and the obligations of title insurers to defend claims against the property's title. Title insurance policies are typically issued after a thorough title search has been conducted by the title company to ensure that the property title is clear of any liens, encumbrances, or defects. The policy provides coverage for legal defense against claims and pays for any covered financial losses incurred due to title defects. It's important for buyers in North Dakota to consider obtaining title insurance during real estate transactions to protect their interests in the property.