Title Examinations vs. Title Insurance

The process of title insurance involves something known as a title examination. During a title examination, the title company researches the entire history of the ownership of the property via the land records. After this research is complete and no issues with the title have been found, the title company will issue title insurance.


However, this may bring up a question among some homebuyers. If the title examination is completed and no errors are found, why would I need insurance? Hasn’t the title company verified that the title is clear? If so, it seems insurance might not be necessary.


This is a logical deduction, but there are other factors in play here. Just because research didn’t turn up any issues with the title, doesn’t mean that the potential for issues is still there. There is still the potential that an unscrupulous person may attempt a fraudulent claim on your title. An estate may be mishandled, or a filing error may occur, which could open up the potential for problems with your title. There is no way to foresee these possibilities when the title examination is done, which is why it alone doesn’t offer sufficient protection. Title insurance ensures that you’re protected in the future if any problems arise with your home’s title.


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About Colony Title Associates:

Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the Baltimore area. If you have any questions concerning issues that Baltimore title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!

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