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 Michigan, title insurance is a contractual arrangement that protects real estate purchasers and lenders against loss or damage due to title defects, liens, or other matters. It is typically issued after a title company conducts a thorough search of the public records to trace the history of ownership of a property and identify any issues with the title that might affect the buyer's rights to the property. The title insurance policy provides coverage for legal defense against claims and pays for any covered losses. Michigan's laws regarding title insurance are primarily regulated by the Michigan Insurance Code, which sets forth the requirements for issuing title insurance, licensing of title insurers, and the conduct of title agents. The Michigan Department of Insurance and Financial Services oversees the enforcement of these regulations to ensure consumer protection and the integrity of the title insurance process.