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 Oregon, title insurance is a contractual arrangement that protects buyers and lenders from financial loss due to defects or issues with the title of a piece of real estate. This insurance is typically provided by a title company after they perform a title search to uncover any potential problems with the property's history, such as liens, encumbrances, or legal claims. The title insurance policy ensures that the policyholder has a clear title to the property, and it will cover the costs of legal defense and any valid claims against the title. Oregon's regulations on title insurance are governed by the Oregon Insurance Division, which sets standards for title insurance practices, including the licensing of title insurers and agents, and the rates that can be charged for title insurance policies. The state statutes and administrative rules ensure that title insurance companies operate in a fair and financially sound manner, providing protection for consumers in real estate transactions.