Title insurance safeguards against issues related to ownership claims. These issues include situations where another individual asserts a claim to ownership, documents that were not filed correctly, instances of fraud or forgery, liens, encroachments, easements, and other matters outlined in the policy.

Once the title order is initiated by the escrow officer or lender, the title agent or attorney conducts a title search. A Preliminary Report is provided to the customer for their examination and consent. Closing documents are recorded according to the instructions given by escrow. After recording is verified, demands are settled, funds are distributed, and the title insurance policy is formally generated.

Escrow is the procedure where the money from a transaction (like selling a home) is kept by a neutral third party, typically a title company or an attorney in real estate deals, until the transaction is completed.