TITLE INSURANCE INFORMATION

A Title search is the first thing you should do when considering the purchase of a piece of property and when you are selling your property. It ensures your right as an owner.

The searcher examines recorded deeds, mapping a chain of title to determine that the present owner received a valid title from the prior owner and so forth down the line. This search will uncover any encumbrances like mortgages, real estate taxes, federal taxes, liens for utilities or municipality improvements, legal judgments, foreclosures, government claims, condemnations, covenants, and easements.
The title policy insures your ownership rights so, should any claim ever arise against your title as insured, the title company should immediately arrange for legal counsel to defend your title in court if necessary, completely at the title company’s expense. If the claim is valid and a loss sustained, the title company should pay up to the full value of the policy.

The Process:
Once a sales contract is negotiated, the earnest money is delivered to the title company. The amount of the earnest money is a negotiated part of the contract, but it is recommended that the buyer limit that amount to less than two percent of the offered price.

Because the title company is the coordinator between the lender, buyer, seller, agents, surveyor, insurance company, taxing authorities, etc., the escrow officer will be requesting information from all parties. Until all parties provide their cost figures, the escrow officer cannot calculate the bottom line for the buyer or seller. To expedite the process buyers and sellers are also encouraged to provide any requested data as soon as possible. (Loan info for seller’s payoff, marital status, survey if possible-Buyer’s lender info, marital status, homeowner’s insurance contact)

After the escrow officer reviews lender instructions, documents, any instructions from other parties and prepares the settlement statement, the closing of the transaction can commence. At the title company the seller signs the deed and the buyer the new mortgage., plus other documents, disclosures, etc. The old loan is paid off and so are the seller, real estate agents, attorneys, surveyors, and any other parties listed on the settlement statement. The title company is responsible for the disbursement of the settlement funds and for filing all documents in the county where the property is located.

You would not hesitate to purchase fire or flood insurance to protect your largest single investment—your home. When you purchase a home you are actually purchasing the title to the property—the right to occupy and use the space. If that title is limited by claims and rights asserted by others, the result could mean financial loss and/or limitations of your use of the property. A title insurance policy is definitely a must for all home owners!

Buyer tips | Seller tips | Mortgage info | Title info | Inspection info | Insurance info