If you have retained your attorney to examine the title, the attorney will provide you with a written Opinion on Title or will obtain an owner's policy of title insurance for you. Following examination, the attorney will advise you of the findings and may give you an opinion of the marketability of title. However, the attorney's opinion cannot advise you of or protect you from title difficulties not disclosed by the public records. Protection against such difficulties can be afforded only through the purchase of an owner's policy of title insurance. It is important to note that a title insurance policy in favor of your lender or in favor of a prior owner does not protect your interest.
Title insurance is a contract between the insurer and the insured.
Only if you are named insured in the policy are you protected, and then only as set forth in the policy. You should be aware that your title insurance policy may exclude from coverage certain risks which you may not be willing to assume. Ask an attorney about title insurance. Not only can the attorney procure an owner's policy for you, the attorney will advise you prior to closing of the exclusions from coverage and will explain the potential consequences of these exclusions. The attorney can also advise you in selecting a reputable title insurance company.