Title Insurance FAQ'S
Q. WHAT IS OWNER'S TITLE INSURANCE?
A. Owner's title insurance is a policy which protects purchasers of real estate from title defects that may exist against the property. It offers protection to purchasers from past events which may or may not be a part of the public record, but that can adversely effect a new owner's interest in the property.
Q. WHAT IS LENDER'S OR MORTGAGEE TITLE INSURANCE?
A. Lender's or Mortgagee title insurance insures the lender as to the priority of its lien. It insures the lender that there are no other mortgages, liens or judgments recorded prior to their mortgage.
Q. WHAT ARE EXAMPLES OF TITLE DEFECTS?
A. Liens, judgements, open or unsatisfied mortgages, missing heirs, forgeries and unpaid taxes are some example of title defects that a proper search of the public records may uncover.
Q. HOW DOES TITLE INSURANCE PROTECT ME IF A CLAIM SHOULD ARISE?
A. If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense and pay all court costs and related fees. Also, if the claim proves valid, the title insurance company will reimburse you for your actual loss up to the face amount of the policy.
Q. WHAT DOES TITLE INSURANCE COST?
A. Rates are normally set by the Department of Insurance in individual states, based on the sales price or the mortgage amount. Please contact us for detailed information on a title quote.
Q. WHO PAYS FOR OWNER'S TITLE INSURANCE?
A. Generally, local custom in the individual county determines whether the buyer or the seller will pay for the title insurance and other closing costs. However, who will pay is a negotiable issue and should be addressed in the contract for sale and purchase.
Q. WHAT IS A TITLE SEARCH?
A. A title search is a detailed examination of the historical records that have an impact on the real property being searched. The search includes an examination of prior deeds conveying the property, court records, property and name indexes along with various other documents that may affect the property and title.
Q. WHAT IS A TITLE EXAM?
A. It is an examination of all the documents and records, by a title examiner, that affect the property. The goal of the title examiner is to discover any claims, defects, liens and any other records that burden the property in order to clear title and verify the seller's right to convey the subject property.