The seller also warrants title to be free and clear except as otherwise stated in the deed. A hold, a claim or charge allowed a creditor upon the lands of a debtor. They are not responsible for matters previous to the sellers acquisition. This is often used on commercial transactions where the seller and buyer agree to rely on the title insurance for protection but require the seller to account, if necessary, for matters occurring during the seller's ownership. A measured parcel of land that has fixed boundaries.
Coverage decreases with each mortgage payment.
Examples are forgery, fraud, missing heirs outstanding dower interest, etc. A map that shows how land is subdivided into lots. A written contract of title insurance. The buyer has no recourse against the seller for defects in the title. Title insurance is advisable whenever the buyer accepts title by Quit Claim Deed.