Which entity typically issues a title insurance policy?

The entity that typically issues a title insurance policy is a title insurance company. These companies play a crucial role in the real estate transaction process by providing protection against losses that may arise from defects in the title to real property. Such defects can include issues like outstanding liens, claims of ownership by others, or inaccuracies in the property's title history.

Title insurance companies conduct thorough title searches to uncover any potential issues and then issue a policy that protects the policyholder—usually the buyer or lender—against these risks. This insurance remains in effect for as long as the insured party has an interest in the property, adding a layer of security for real estate transactions.

In contrast, a federal government agency does not issue title insurance policies; rather, it might regulate aspects of real estate transactions. Real estate appraisal firms are responsible for estimating property values but do not deal with title insurance directly. Property management services focus on the management of real estate properties and tenant relationships, not on issuing title insurance.