Title insurance has been safeguarding property owners in the United States for well over a century. Its origins trace back to the mid-1800s, when land ownership disputes were common as settlers expanded to the west. At that time, transactions relied on conveyancers who researched public records to uncover potential issues like liens, or conflicting ownership claims. However, if an error was missed and discovered later, the new property owner often had little to no legal recourse.

That changed in 1868 when a landmark Pennsylvania Supreme Court decision led a group of Philadelphia attorneys to establish the first title insurance company. Their goal? To provide buyers and sellers with financial protection against unforeseen title defects.

Since then, title insurance has been crucial in protecting homeowners from issues such as unpaid taxes, easements, and liens. But it has also shielded buyers from more unusual scenarios—like a house accidentally built on the wrong lot, an unauthorized sale by a family member, and even a long-lost sea captain returning to reclaim his home!

Some people have turned to Attorney Opinion Letters (AOL) instead of title insurance.  An AOL is a written legal opinion about the property’s title, often presented to lenders to assess risk.  While an AOL reviews title records and flags potential issues, it is not the same as title insurance.

Here’s what an AOL doesn’t do:

• It is not an insurance policy
• It doesn’t cover hidden defects or public record errors
• It won’t pay legal fees if your title is challenged
• It offers no financial protection if a claim arises

The short story? Title insurance is a reliable safeguard that ensures your property ownership is legally sound and protected. Partnering with a reputable, locally based title insurance team provides peace of mind, knowing your investment is secure from any unexpected claims or legal challenges.