Which entity is referred to as the one that insures title in a real estate transaction?

In a real estate transaction, the entity that insures title is known as the insurer or underwriter. This entity is responsible for providing title insurance, which protects the buyer and lender against any potential claims or defects in the title that were not discovered during the title search process. Title insurance is essential because it offers a safeguard against specific issues that may arise, such as liens, encumbrances, or title disputes, that could affect the ownership rights of the property.

The insurer conducts a thorough examination of public records to identify any issues with the title before issuing the policy. If a claim arises after the sale, the insurer steps in to defend the title, allowing the property owner to have peace of mind regarding their investment. This role is crucial in facilitating the real estate transaction, as it ensures that all parties involved are adequately protected against unforeseen title defects.

Other roles, such as agents, brokers, and trustees, serve different functions within real estate transactions that do not involve the insurance of the title itself. Agents and brokers primarily aid in the buying and selling process, while trustees manage trust properties and execute transactions based on trust agreements.