insurance policies, written by title insurance companies, protecting lenders against challenges to the title claim to a property. Title insurance protects a policyholder against loss from some occurrence that already has happened, such as a forged deed somewhere in the chain of title. If, for example, someone came along claiming that her parents formerly owned the house in question, and that, as beneficiary of her parents' estate, she now deserved to take possession of the property, the title insurance company would defend the present owner's title claim in court. Title insurance premiums are usually paid in one lump sum at the time the policy is issued, and the policy remains in force until the property is sold. Mortgage lenders normally require that borrowers obtain title insurance to protect the lenders' interest in the property. Property buyers also may purchase an owner's policy to protect their interest in the property.

process of verifying the actual owner of real property by a careful review of public land records, usually conducted by a professional title abstracter. This investigation also determines whether there are any outstanding liens or encumbrances binding on the property, and results in issuance of an abstract of title by the title company.

legal claim, circumstance, or other condition that makes it difficult to identify the true owner of real property or transfer title to another. It is also called a cloud on title or clouded title, as when ownership has not been recorded properly, or when secondary liens have not been removed after the obligations have been paid.

firm that verifies ownership of real property, often done in connection with a conveyance of real property from buyer to seller. The valid owner is determined through a thorough examination of property records in a title search. The company issues a title certificate, based on its examination.

the descriptive text that appears in the browser's title bar. The web page title is used as the name when the user creates a bookmark

opinion by an attorney or title searcher, after an inspection of public tax and land records, of the condition of the title to a specific piece of property. It does not provide warranties as to the authenticity of a title; that is done by a title insurance company.

title that is clear of all claims or disputed interests. It is necessary to have clear title to a piece of real estate before it can be sold by one party to another. In order to obtain a clear title, it is usually necessary to have a title search performed by a title company, which may find various clouds on the title such as an incomplete certificate of occupancy, outstanding building violations, claims by neighbors for pieces of the property, or an inaccurate survey. Once these objections have been resolved, the owner will have a clear and marketable title.

method of acquiring legal title to land through actual, continuous, open occupancy of the property, for a prescribed period of time, under claim of right, and in opposition to the rights of the true owner.

title to a piece of real estate that is reasonably free from risk of litigation over possible defects, and while it may not be perfect, it is free from plausible or reasonable objections, and is one that a court of law would order the buyer to accept. A seller under a contract of sale is required to deliver marketable title at final closing; this requirement is implicit in law and does not need to be stated in the contract. Usually the property buyer will engage a title insurance company to ensure that the seller has clear title to the real estate before entering into a purchase contract. This search generally is not ordered until financing has been secured. Once the title company has researched the history of ownership of the property and feels sure that the seller owns it, it will issue a title insurance policy. The seller is thus assured that he has a marketable title, which allows him to transfer ownership to the buyer.

an outstanding claim or encumbrance that, if valid, would affect or impair the owner's title. Compare clear title.

Example: Abel dies and in his will leaves land to Baker. Abel's widow is contesting the validity of Abel's will. During this period there is a cloud on Baker's title to the land.

that which appears to be good title but is not.

Example: Abel gives Baker a deed to land that he has never actually owned; Baker farms the land under a color of title.