It's called a "Marketable Title" - proof that your property is free and clear of prior indebtedness or other defects or encumbrances. It is the most critical part of the home buying process that you walk away with a marketable title. Unfortunately, the process is a little more complicated than it may seem.

You should never accept a deed - the transfer document the seller warrants your title against claims of other persons - without a thorough title examination of the property. This involves its complete legal history.

In some cases - more today than ever - the process uncovers title defects that could put your ability to take a clear title in jeopardy.

This is where your attorney comes in. If his or her research reveals title defects, you can compel the seller to undertake legal proceedings to clear it. This includes hidden flaws that may escape the examination and put your ownership in question - even after you've closed. Examples of title defects include:

• Lost or forged deeds
• A married signer who represents himself/herself as single
• Claims of undisclosed heirs
• Impersonation of another
• Clerical error at the courthouse when earlier documents were recorded
• Incorrect legal description
• Instruments signed by minors or mentally incompetent persons
• Title taken as a result of an improperly probated will
• Confusion of title resulting from similar names.

That's why title insurance isn't really an option. It's your only protection from these defects. If you're forced to defend your title in court, the insurer agrees to pay the costs.

Your lender will insist on title insurance in the amount of the mortgage loan. Unfortunately, a lender's policy or mortgagee policy doesn't protect your ownership interest. You need an owner's policy.

The owner's title insurance policy is an agreement that the insurer will pay all losses involved in any claim covered by the policy terms. The policy provides two types of coverage:

1. If the insured title is contested, the insurer will defend the title at no expense to you.
2. If the title is defective and the problem cannot be resolved, title insurance protects you from financial loss. You'll be reimbursed up to the amount of the policy -- generally, the full amount of your loss.

The fee is modest - a one-time premium that continues, in effect, forever - even after you sell your home. The policy is issued in an amount equal to the purchase price of the property or its market value.

Many companies sell title insurance. But you're taking a chance if you use a title agency not affiliated with a law firm. They only prepare documents for closing and issue your title insurance policy. The title agency cannot represent your legal interests and cannot give you legal advice.

An attorney representing your interests is the most reassuring way to conduct a thorough title examination and issue an owner's policy.