Title insurance is one of many components in the completion of mortgage financing. It provides the lender with coverage for losses resulting from specific title defects listed in the policy. But for you as the buyer to be protected, you must purchase separate owner's coverage. When land and property have changed ownership many times, the possibility exists that an error may have occurred at some point. An error might mean that someone else has title or an interest in the property. Or it might be that improvements, such as a shed or fence, encroach on property lines.
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