What does insurability of title refer to?

Insurability of title refers specifically to the willingness of a title insurer to issue a policy. This concept is crucial in the realm of real estate transactions since title insurance protects buyers and lenders from potential defects or issues with the title of a property.

When a title is considered insurable, it means that, after a thorough examination of public records and other relevant documents, the title insurer has determined that any risks associated with the property's title can be covered under a policy. This determination involves evaluating prior ownership histories, liens, encumbrances, and any other legal issues that might affect the ownership rights of the property.

Understanding this concept is important for real estate professionals, as it influences the ability to provide buyers with a security measure against future claims or disputes regarding ownership. If a title is not insurable, it may indicate unresolved issues that could lead to significant complications for property buyers or lenders.