|
What is a
title?
Do I really need Title Insurance?
What types of title insurance are there?
Do I need title insurance if I am only
refinancing?
I'm buying a newly built home. Do I
need title insurance?
How long is my title policy good for?
What is a title search?
Are there problems that a title search
cannot reveal?
How much could I lose if a claim is
filed against my property?
How does title insurance protect my investment
if a claim should arise?
How much does title insurance cost?
When should I look into purchasing
Title Insurance?
What is
a title?
A title is the foundation of property ownership. It
is the owner’s right to possess and use the property.
It is possible that someone other than the owner has
a legal right to the property. If that right can be
established, this person can claim the property outright
or make demands on the owner as to its use.
Do
I really need Title Insurance?
Most definitely! Title insurance is a means of protecting
yourself from financial loss in the event that problems
develop regarding the rights to ownership of your property.
There may be hidden title defects that even the most
careful title search will not reveal. Some examples
of defects are:
 Forged
deeds and mortgages
False
impersonation of the true owner of the land
Instruments
expected under fabricated or expired power of attorney
(death or insanity of the principal)
Deeds
apparently valid, but actually delivered after the death
of the Grantor/Grantee, or with Grantor’s/Grantee
approval
Deeds
by minors, people of unsound mind, or not properly delivered
Failure
to include necessary parties in judicial proceedings
Federal
Estate, State Inheritance, and Gift Tax Liens
Errors
in tax records or false reports by tax officials
Conflicting
Wills
Missing
Heirs
This is only a partial list of
defects that we have seen. Let Complete Title Services
uncover any title defects for you and help make your
real estate transaction secure.
What
types of title insurance are there?
There are two types of title insurance policies: Lender’s
Title Insurance (also called a Loan Policy) and Owner’s
Title Insurance. Most lenders require a loan policy
when they issue you a loan secured by real estate. The
loan policy is usually based on the dollar amount of
your loan. It protects the lender’s interest in
the property should a problem with the title arise.
The policy decreases each year and eventually disappears
as the loan is paid off.
Owner’s Title Insurance is
usually issued in the amount of the real estate purchase.
It is purchased for a one-time fee at closing and lasts
as long as you or your heirs have an ownership interest
in the property.
Do
I need title insurance if I am only refinancing?
You won’t need owner’s title insurance when
you refinance. However, because you are obtaining a
new loan, your lender will require you to purchase lender's
title insurance to protect their investment in the property.
I'm
buying a newly built home. Do I need title insurance?
Yes. Construction of a new home raises special title
problems for the lender and owner. You may think you
are the first owner when constructing a new home on
a purchased lot. However, there were probably many prior
owners of the unimproved land. In addition, builders
routinely fail to pay subcontractors and suppliers.
This could result in the subcontractor or supplier placing
a lien on your property. Purchasing owner’s title
insurance will protect you against these problems and
pay for any legal fees involved in defending a claim.
How
long is my title policy good for?
The owner’s policy is valid from the time your
policy was issued until you choose to sell or transfer
your deed or property. The lender’s policy is valid
through the life of the loan. The loan may be passed
to another lender though a reassignment of the loan,
however, it is not assignable should you refinance the
property. A new lender’s policy will be issued
at that time.
What
is a title search?
A title search is a detailed examination of the historical
records concerning a property. These records include
deeds, court records, property and name indexes, and
many other documents. The purpose of the search is to
verify the seller’s right to transfer ownership
and discover any claims, defects, and other burdens
on the property.
Are
there problems that a title search cannot reveal?
Yes, there are hidden “defects” that even
the most diligent title search may never reveal. A single
defect that remains undisclosed after even the most
thorough title search can make a title defective. These
hidden defects are dangerous because they can remain
uncovered for many months or years. Yet they could force
you to spend sizeable sums on a legal defense, and still
result in the loss of your property.
Some example defects are:
Forged
deeds and mortgages
False
impersonation of the true owner of the land
Instruments
expected under fabricated or expired power of attorney
(death or insanity of the principal)
Deeds
apparently valid, but actually delivered after the death
of the Grantor/Grantee, or with Grantor’s/Grantee
approval
Deeds
by minors, people of unsound mind, or not properly delivered
Failure
to include necessary parties in judicial proceedings
Federal
Estate, State Inheritance, and Gift Tax Liens
Errors
in tax records or false reports by tax officials
Conflicting
Wills
Missing
Heirs
Complete Title Services are experts
at conducting ‘complete’ title searches. We
will make all reasonable efforts to find these defects
and correct them before they become a problem for you.
How
much could I lose if a claim is filed against my property?
That depends on the claim. In an extreme case, you could
lose your entire home and property, and still be required
to pay off the balance of your mortgage. Even the smallest
claim can cost you time, money, and aggravation, and
you may have to pay legal fees.
How
does title insurance protect my investment if a claim
should arise?
If a claim is made against your property, title insurance
will, in accordance with the terms of your policy, assure
you
A
legal defense and all court costs
Any
related fees
Reimburse
you for your actual loss up to the face value of the
policy
How
much does title insurance cost?
It probably is a lot less than you might think. Generally
the cost of title insurance (including search, examination,
and related services) amounts to about one percent,
or less, of the cost of the property. The one-time premium
is directly related to the value of your real property.
When
should I look into purchasing Title Insurance?
Call Complete Title Services as soon as you and the
seller sign the earnest money contract. With a brief
summary of the details, our team of title experts will
begin a search of the public records and issue a title
commitment. Because there are a number of steps we must
take to make certain that we know all we can about the
title, it is best to get the process going as soon as
possible.
|
