What is Title?
What is a title search?
Title is a collective term for all of your legal rights to own, use and dispose of land. Title includes all previous ownership, uses and transfers. To legally transfer real estate property, a title search must be performed, and, in most cases, the title must be found free of any circumstances that could endanger your right of ownership.
What kinds of problems can a title search reveal?
A title search is a detailed examination of the historical public records concerning a property. These records verify the seller’s right to transfer ownership and to discover any potential challenges in the closing and ownership process.
What is title insurance and why do I need it?
A title search can show a number of title defects and liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
Am I legally required to have title insurance?
Title Insurance affords protection from past events which may or may not be a part of the public records, but that can adversely effect a new owner’s interest in the property being sold to them. Title Insurance protects against matters of public record, plus hidden title defects, such as fraud, forgery, incompetence or missing heirs, that even the most diligent title search may not discover. There are two types of Title Insurance: A lender’s policy and an owner’s policy. The lender’s policy protects the lender’s interest in the property for the amount of the mortgage loan. An owner’s policy protects the home buyer for the full property value.
How does title insurance protects me against?
You are not legally required to have title insurance. If you pay cash for your property you could do without it, but you would leave yourself open to a potentially devastating loss if the property turns out to have a defective title. If you carry a mortgage, the lender requires you to buy a lender policy to protect its interests.
How long does my insurance last and how much does it cost?
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, you will be reimbursed for your actual loss up to the face amount of the policy.
What is a closing agent and what do they do?
For as long as you or your heirs retain an interest in the property and, in some cases, even beyond. The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you, or your heirs, own the property.
What happens at the actual closing?
A closing agent is a disinterested third party that follows the instruction of your lender, realtor, attorney or buy-sell agreement to complete the sale or purchase of your property. This agent gathers information from many sources to create the final Settlement Statement such as payoff information, tax information, deed preparation and commission amounts. The closing agent also receives funds and documents necessary to comply with those instructions, completing or obtaining required forms and handling final delivery of all items to the proper parties upon successfully completion of the escrow. The escrow agent must be provided with the necessary information to close the transaction. This may include loan documents, tax statements, fire and other insurance policies, terms of sale and any financing obtained by buyer, and requests for various services to be paid out of the escrow funds. If the transaction is dependent on arranging new financing, it is the buyer’s responsibility to make the necessary arrangements. Documentation of the new loan agreement must be in the hands of the escrow agent before the transfer of property can take place. When all instructions in the escrow have been completed, the closing can take place. At this time, signatures are obtained by all parties, all outstanding funds are collected, and fees such as title insurance premiums, real estate commissions, inspection charges, etc. are paid. Title to the property is then transferred under the terms of the escrow instructions and the appropriate title insurance policies are issued.
What happens after the closing?
The closing officer will explain all documents to you and answer any questions you have. You will then sign the necessary papers and the closing officer will notarize them. We will then obtain authorization to disburse from the parties and then Disbursement will occur. We will then record the necessary documents shortly thereafter.
After closing, you will receive the recorded documents along with your Owner’s Title Insurance policy. This should occur within 30-45 days of closing, depending on the county where you are located and their records.