FAQS
What is a Title?
A Title is a right or claim to the ownership of property.
Who Chooses the Title Company?
The buyer selects the settlement company, however, the seller may choose their own settlement company by requesting a split settlement.
What is Title Insurance?
Title Insurance protects against loss or damage resulting from the unknown such as a defect in a title or interest in real estate. In short, title insurance covers past title problems that may come up after purchasing or refinancing a property.
Do I have to purchase title insurance?
If a purchaser is securing a mortgage loan from an institution lender the borrower is required to purchase a lender’s title insurance policy. This policy is protection for your lender’s full loan amount only for the life of the loan and ceases once the loan is paid off.
An owner’s policy of title insurance protects the homeowner’s interest for the term of ownership, and for the full amount of the purchase price. Owner’s title insurance protects you against losses incurred due to any title defects that existed prior to the purchase of your home. Purchasing an owner’s policy of title insurance is optional. However, it is important to reflect that unlike other insurance such as auto and health, title insurance is a one-time only fee paid up front, and will protect you in the event a legal challenge is made to the ownership of your home. The owner’s and loan policy can be purchased together at one rate, or what we call in the industry a simultaneous issue.
How Does Title Insurance Work?
As a property changes hands, mistakes and irregularities – often made long before you expressed interest in the property – can place your ownership in dispute.
Some examples are: The seller may have avoided disclosure of using the property as collateral for an unpaid loan, fraudulently claimed to be the sole owner, failed to pay real estate taxes. Even a simple mistake in the recording of legal documents, improper execution of legal instruments or the reappearance of undisclosed or missing heirs could result in the loss of your home.