Title insurance (deal)

Insurance against loss of ownership: when needed, cost, coverage

How title insurance works

  • What it covers

    Deal invalidated due to forged documents, incapacitated seller actions, heirs'/spouse's rights violations, seller's bankruptcy, registry errors.

  • What is NOT covered

    Defects the buyer knew about; new encumbrances after the deal; problems visible in the registry at purchase time (the check should have caught those).

  • Cost

    In Ukraine ~0.5–1% of property value for the whole term (3–10 years) or 0.15–0.3%/yr. More critical on the secondary market — a long chain of transfers.

  • Term

    Usually 3–10 years — covering the limitation period for challenging deals (general 3 years, up to 10 for certain grounds). Renews by prolongation after expiry.

  • Who needs it

    Secondary-market purchase with 3+ transfers, post-privatization/inheritance objects, corporate seller, mortgage (bank may require). New build from developer — lower risk.

  • How to arrange

    Policy before or on the notary day. The insurer runs its own minimal check — a refusal to insure is itself a signal of problems.

  • Payout

    On loss of ownership the insurer compensates the object value (sum insured = deal price). A court decision invalidating the deal is required.

Title insurance protects against losing ownership due to defects in past transactions (forgery, seller's bankruptcy, inheritance disputes). It does NOT replace legal due diligence — it covers what the check missed.