| Title
Insurance FAQs What is Title Insurance?
Title insurance is a protection against loss if a defect is found in your title
Why do I need Title Insurance?
For the same reason you may need car insurance or health insurance, If something occurs
you are protected. Title Insurance provides a "safety fence" around your
property and provides you with peace of mind.
Why is Title insurance required?
Title insurance insures that the sellers hold clear title to the property being sold.
Lenders insist that buyers carry title insurance as protection from unforeseen claims
against the lender's security interest.
What is a Title Search?
A title search is the first step in obtaining title insurance. It's a detailed examination
of the historical records concerning the property. These include deeds, civil and probate
court document, tax records, etc.
What is the purpose of the search?
There are two reasons for the search
1. to verify the seller's right to transfer ownership.
2. To discover any claims, errors, assessments, debts or other restrictions on the
property
What happens after the search is done?
In some cases the title searcher prepares an abstract, a condensed legal history of all
the transactions affecting the property. Based on the results of the search, we may issue
a commitment to insure
What is a commitment to insure?
The commitment to insure (binder) is a document given to the lender and buyer which
contain
- A summary of the title, including title defects, liens, etc.
- Conditions to be met to insure the proposed transaction
- An agreement to issue a title insurance policy upon payment
of the premium.
Do you provide title searches?
Yes. A title search is the first step in obtaining title insurance. It is a detailed
examinations of the historical records concerning the property.
Who pays for title insurance?
Payment of title insurance fees are negotiated by the Buyers and Sellers when the Purchase
& Sale Agreement is drawn up. Usually, the seller pays for the owner's policy, the
buyer pays for the loan policy.
What happens if a claim is made against me?
Claims are rare but, if one is made against you notify us at once. Have all of the related
letters and documents.
What is usually done if there is a claim?
There are usually four options
- The company may negotiate with the other party to settle the
claim
- The company may defend your title in court if necessary
- The company may satisfy any covered claim for which it is
responsible
- The company may pay legal costs incurred in defending the
title
How much does title insurance cost?
In some cases title insurance costs are shared by the buyer an seller. You pay a
one-time premium. Contact us well be glad to give you an estimate |
