What happens when you pay for a title search? First the Title Company looks up county records for the property in question. Records are kept for every transaction in which the title changes hands, and in which a lien is placed against a property.
If the title has been searched before, the record of that search can usually be examined. If the search shows the title is clear, that is with no claims against it, title insurance can be issued.
The function of title insurance is to protect the insured against claims which were not revealed in the search, should an undiscovered claim arise.
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