Counsellors Title – Title Terms

The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853, to protect from future loss in the event that a claim disputing your right of ownership be brought against you after the purchase is made. The owner’s title insurance policy provides assurance that your title company will stand behind you, if a covered title problem arises after you buy  a home.

A loan policy or a lender’s policy protects the lender for the amount of the loan. If a buyer only has a loan policy, they are not protected if a problem materializes also known as a defect with your title.

A Title Commitment
Prior to the purchase or closing of a property, a title commitment or report is prepared prior to issuing a policy of title insurance indicating the ownership of a specific parcel of land. This includes any liens and encumbrances. The title commitment lists, in advance of purchase, title defects, liens and encumbrances which would be excluded from coverage if the requested title insurance policy were to be issued as of the date of the commitment. This report is then reviewed and discussed by the parties to a real estate transaction and their agents. It then provides the opportunity to seek the removal of items referenced in the report which are objectionable to the buyer prior to purchase by taking the necessary actions.