An abstract for a property is a summary of the public records relating to the property's ownership history, including deeds, mortgages, and other documents. It is used to determine whether there are any legal claims or defects on the property's title that could affect its ownership or value.

Title insurance is an insurance policy that protects property owners and lenders from financial loss due to defects in the title of the property, such as outstanding liens, undisclosed heirs, errors in public records, or fraud.

A title on a property is a legal document that proves ownership of the property. It includes information about the property's ownership history, any liens or encumbrances on the property, and any restrictions on its use.

Insurance such as care, life or health protects against potential future events, and is paid for with monthly or annual premiums. A title insurance policy insurances against events that occurred in the past. It is a one-time premium paid at the close of the escrow.

Title insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, lines, encroachments, easements and other items that are specified in the insurance policy.

Anyone who owns or is buying property needs title insurance. It protects you from financial loss if there are any problems with the title to your property.

State laws and customs vary on who pays for title insurance, but generally:

Home buyers typically cover costs for lender’s title insurance as they are the one who is taking a loan from the mortgage lender

The person who pays for owner’s insurance can vary. Sometimes, the seller could pay for the title policy as an offering to help with the sale of the property.

After the escrow officer of lender opens the title order, the title agent or attorney begins a title search. A Preliminary Report is issued to the customer for review and approval. All closing documents are recorded upon escrow’s instruction. When recording has been confirmed, demands are paid, funds are disbursed, and the actual title insurance policy is created.

Escrow refers to the process in which the funds of a transaction, i.e., the sale of a house, are held by a third party, often the title company, pending the fulfillment of the transaction.