Title Information and Mortgage Coverage Clause Samples

The "Title Information and Mortgage Coverage" clause establishes the requirements for providing evidence of clear property title and adequate mortgage insurance coverage. Typically, this clause obligates the seller to furnish documents proving that the property is free from liens or encumbrances, and may require the buyer to obtain title insurance or the lender to be named as an insured party under a mortgage policy. Its core function is to protect both parties—especially the lender and buyer—by ensuring that ownership rights are secure and that financial interests are safeguarded against potential title defects or claims.