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 South Dakota, title insurance is a contractual arrangement that protects the policyholder from financial loss related to defects or claims against the title of real property. When a property is bought, a title company typically conducts a title search to uncover any issues with the property's history, such as liens, encumbrances, or legal claims. After this search, the title insurance is issued to the buyer to safeguard against any future claims or undiscovered issues. The insurance can cover legal costs in defending the title and compensate for losses up to the amount of the policy. The regulations governing title insurance in South Dakota ensure that title insurers operate within the state's legal framework, which includes licensing requirements, standards for title searches, and the provision of clear title insurance policies to protect consumers.