Intestate succession means that a person has died without a will, which results in the estate of the deceased person being settled by the courts through probate proceedings. Probate is the legal procedure for disposing of the estate of a decedent and for paying his or her debts. No matter how a deed is conveyed, it is important that the nature of the transfer be recorded with the local government office charged with keeping public records. These records, including recorded deeds, are usually kept at the courthouse in the county where the property is located. Determining whether a title is marketable may be accomplished through a title abstract, which is used as the basis for an attorney's opinion of the validity of the title and is the basis for title insurance.
Title insurance is a guarantee of marketable title.
The title insurance company checks the records and issues a preliminary title report. This is not an insurance policy, but is a statement of the title's condition. It affirms that the insurance company will issue a title policy with any found exceptions or conditions that would render the title non-marketable. Title policies are issued at the closing of a transaction for purchasing real property. Title policies are paid with a one-time premium and protect the purchaser and lender.