Title insurance insures, defends, indemnifies, and protects the policyholder against claims or losses arising from a defect or claim against the title to real property. Title insurance is usually issued to the buyer of real property by the title company that conducted the title search.
In Georgia, title insurance is a contractual arrangement that protects real estate buyers and lenders from financial loss due to defects in a property's title. The title insurance policy ensures that the policyholder has a clear title to the property, free from liens, encumbrances, or legal defects. It is typically issued after a title company conducts a thorough search of public records to verify the seller's right to transfer ownership and to discover any claims, defects, or other rights or burdens on the property. If a claim is made against the property, the title insurance company is obligated to defend the policyholder's title in court or compensate for the financial loss up to the amount of the policy. In Georgia, title insurance is regulated by the Georgia Department of Insurance, which oversees the licensing of title insurers and the enforcement of state statutes governing title insurance.