“Title Claim” has two meanings. (1) Threat to your real estate. (2) Threat to your money.
The French invented Double Entendre, or at least they came up with the cool saying that means “double meaning“. Probably they weren’t thinking of real estate when they coined the phrase.
In the immediate sense, a Title Claim is a lawsuit filed against you claiming that all or part of your real estate belongs to someone else. It seems ridiculous that these things happen, but they do. Just because you paid money for your home and a lawyer closed it, or you inherited it does not make you exempt from a Title Claim.
In the secondary sense, a Title Claim obligates you to defend your rightful ownership in a court of law, and in that way involves your money in legal expenses… unless you have Title Insurance. Sure, you could walk away from the lawsuit and the property, in which case both threats come true at once- you lose your house and your money by virtue of the equity in the house. Or you could fight the lawsuit on your own at your own expense, paying legal fees until you run out of funds or lose your house, whichever comes first-in which case both threats come true.
While a Title Claim is a threat to your house and your money, you can financially protect yourself from a Title Claim with Title Insurance.
Title Insurance also helps protect against loss of your house in that it provides and pays for legal representation to defend your ownership rights. Title Insurance is not a guarantee you will win your court battle; however, in the worst case scenario with Title Insurance, you lose your house but you also receive the policy amount insured, enabling you to make a down payment on another house.
In real estate, two independent owners claiming 100% each cannot both hold title to the same piece of property at the same time, which makes the Double Entendre of “Title Claim” particularly dirty.