Title insurance is an individual and or company which holds a valid security interest (i.e. mortgagee, debenture holder) in the property.
Rather, it is a single premium insurance contract that indemnifies an insured in the event that, as of the date of the policy, defects or encumbrances (such as mistakes in the recording of legal documents, forged documents and undisclosed heirs) were not revealed or excepted from coverage and cause a loss.
Losses can include attorney charges, expenses (e.g. stamp duty, recording fees) and costs to defend the title. A title insurance policy can also eliminate certain legal fees at closing, thereby reducing transaction costs.
First Bahamas issues two types of policies:
- The Owner’s Policy protects the buyer against defects and encumbrances in the title for as long as the individual or his or her heirs have an interest in the property.
- The Lender’s Policy insures the participating individual and/or company
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