What two agreements can be associated with title insurance?

The correct associations with title insurance are indeed indemnity and attorney in fact. Indemnity refers to a type of insurance protection that compensates for losses or damages, which is a core principle underlying title insurance. Title insurance provides indemnity to the insured party by covering defects in the title that were not discovered during the title search process.

The attorney in fact aspect refers to the legal authority granted to a person (an attorney in fact) to act on behalf of another in legal matters, which can include executing documents and facilitating transactions related to real estate. This is relevant in title insurance situations where transactions must be executed formally—an attorney in fact may be required to take necessary actions to finalize the transaction or to handle claims related to the title insurance.

Understanding these two concepts is crucial because they illustrate how title insurance operates in protecting property rights and managing transactions effectively.