An insurable title is a title that a can be insured by a title company. A buyer is generally advised to get title insurance. Title insurance will protect the buyer in the event of discrepancies in the future. A title company is expected to review all transactions on the property for several years in the past. They check to make sure that all mortgages and liens are released. They review all the documents pertaining to any past sale or lien. If there are any future claims against the property or the validity of any pertinent documents, the title company must rectify these things at their expense. Correcting some of these errors can be costly and timely. An insurable title is one with a clean history that a title company could research and rectify according to their specifications and safely assume that no future issues would arise.
