Sunday, 21 March 2010

Conveyancing Explained - The Evolution of Defective Title Insurance

In today’s conveyancing market, Defective Title indemnity insurance policies are increasingly being used to enable conveyancing to proceed where the defect threatens the transaction. Title Insurance responds to the issues created by defective title in a number of ways, including

• Underwriting the legal cost of responding to a challenge over the owner/mortgagee /insured’s right to use the property
• Indemnifying the fees for rectifying a challenge including legal fees
• Covering the insured against a loss including having to give up ownership of the property or not being able to use the property in the way that they envisaged

In the past, the process of obtaining a quotation for Indemnity Insurance and subsequently arranging cover was a lengthy and complicated process for conveyancing solicitors, in the submission of complicated risk details and underwriting information. Today various companies offer online applications and quotes as well as archiving of the policy itself

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