Oregon is a title insurance state. An abstract of title is simply a recitation of the facts discovered through an examination of the public records. An Opinion of Title is usually prepared by an attorney who reads the abstract and issues an opinion as to the vested owner and any monetary encumbrances affecting the subject property. The Opinion of Title carries no insurance and no protection for the buyer or lender against future claims.
Title insurance is almost an invisible product in a real estate transaction.
Although it carries insurance protection, it is typically read only by the lender involved in the transaction. Consumers seldom read or discuss their title insurance policy. It is important to note that in most sale or refinance transactions involving a lender, the condition of the title may affect loan approval as the lender could refuse to accept a policy with undesirable encumbrances that might not be removed. The following should highlight some of the questions consumers typically ask about title insurance. The ability of the seller to deliver clear and marketable title is a condition referenced in many sale agreements.