Frequently Asked Questions

Title insurance protects the homeowner from unforeseen claims against the property. The insurance will pay for legal defense, court costs and all related fees. It will also reimburse the homeowner for loss up to the face value of the policy.

Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:

•    False impersonation of the true owner of the property.
•    Forged deeds, releases or wills.
•    Undisclosed or missing heirs.
•    Mistakes in recording legal documents.
•    Deeds executed by minors.
•    Deeds executed by persons supposedly single.
•    Fraud.
•    Liens for unpaid estate, inheritance, or gift taxes.
•    Deeds NOT executed by all parties in title.

Title Insurance is issued after a careful examination of copies of the public records. but even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. Other title problems may exist that cannot be disclosed in a public search.

Title Insurance will pay for defending against any lawsuit attacking your title as insured and will either clear up title problems or pay the insured’s lossess. For a one-time premium an owner’s Title Insurance policy remains in effect as long as you or your heirs retain interest in the property.

An owner’s policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.

A lender’s policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender’s interest from certain matters which may exist, but may not be known at the time of closing.

This policy only protects the lender’s interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner’s policy

The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.

A short sale occurs when a lender agrees to accept less than the outstanding loan amount to satisfy the seller’s loan. A short sale allows both the lender and the distressed property owner to avoid foreclosure by selling the property at a loss.

Short sales can be more beneficial to a lender than a foreclosure because lenders are not in the business of managing and owning property and short sales are less expensive than completing the foreclosure process. The short sale process will require patience on behalf of all parties. Typically, the stronger the offer, the quicker the response time.

The Title Insurance policy is purchased at closing for a one-time premium, based upon the loan amount/and or purchase price. However, the preparation that leads to the Title Insurance policy being issued begins in the very early stages of the closing process.

Title Insurance companies offer industry-standard title policies adopted by the American Land Title Association (ALTA) or an individual state’s land title association.

Often, local custom dictates whether the buyer or seller pays for the premium, but sometimes sellers and buyers negotiate who will pay the premium without regard for local customs and procedures. Be sure to ask your real estate professional what is predominant in your area.

No. You have the absolute right to choose your own Title Insurance Company. Simply provide your attorney, lender or realtor with the name and contact information for the Title Company you choose, early on in the closing process to avoid confusion.