Closings glossary

Title insurance

Insurance against loss from title defects that existed before the policy date. New York premiums come from a filed rate schedule, so the figure is calculated rather than negotiated.

What is title insurance?

Quick Answer

Title insurance protects against financial loss from defects in title that already existed when the policy was issued: forged deeds, missing heirs, unreleased mortgages, recording errors. It covers the past rather than the future, and in New York the premium is paid once, at closing.

The full definition

Insurance against loss from title defects that existed before the policy date. New York premiums come from a filed rate schedule, so the figure is calculated rather than negotiated.

Also called: TIRSA rate policy.

Where does title insurance come up in a New York City closing?

An unreleased 1996 mortgage surfaces six years after a Queens purchase, and the owner's policy is what answers the cost of clearing it.

What else should you read before closing?

In the glossary

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