Frequently Asked Questions

Title insurance is a contract of indemnity under which the insurer for a valuable consideration agrees to indemnify the insured in a specified amount against loss through liens or encumbrances upon real estate in which the insured has an interest.

It is an insurance policy that covers the loss of ownership interest in a property due to legal defects such as liens, encumbrances or other defects.

The insurer is, by contact obligated to defend and indemnify the insured against title-related defects, liens, or encumbrances, unless they are exclude from coverage.

In general terms, title insurance protects the insured against covered losses which originated prior to the effective date of the title policy and up to the amount of the policy.

There are two types of title insurance polices:

• Owner Title Insurance policy: Protects a fee owner against potential defects that are hidden despite a thorough search of public records.
• Lender Title Insurance policy: Insures a lender’s mortgage lien interests. The lender’s policy is customarily paid by the buyer/owner of the property.

An Owner’s Title Insurance policy protects the insured against defects such as:

• Fraudulent deeds, mortgages, releases, satisfactions
• Documents not properly indexed
• Survey errors
• Open mortgages
• Documents executed under a falsified, expired or invalid power of attorney
• nmarketable title
• Undisclosed but recorded deed, mortgage, judgment, State or federal tax lien
• No right of access to and from the land
• Unpaid real estate tax liens or assessments
• Deed signed in error, duress, or undue influence
• Impersonation of the true owners of the land by fraudulent persons
• Deed by person who is mentally incompetent
• Deeds, wills, and/or trust that contain improper vesting and incorrect names
• Incorrect notary acknowledgments

The title insurance premium is paid one-time. The premium will indemnify the insured for covered losses which originated prior to the effective date of the title policy and up to the amount of the policy. Unless definitely excluded.

At real estate closings, funds must be totally available for distribution. Therefore, title insurance agencies will only accept good funds at settlement. Good funds are funds collected funds which are immediately accessible for withdrawal upon demand. Acceptable good funds may include:

• Wire transfers from an FDIC insured Bank
• Cashier’s Checks
• Certified checks
• Bank check drawn on a federally insured bank, savings and loan or credit union
• Checks from a government agency or municipality

Clients have the ability to close on-site at our convenient office locations and off-site at their attorney’s office, Real Estate agent’s office, lender’s facility, builder’s complex or at their residence.

As the purchaser of the property and since you are paying the cost for title insurance coverage, you have the right to select the title agency. Use caution when the seller is pushing their title company.

Often, searchers will rely upon old extracts or summaries and not actual records. The same errors could be duplicated. It is wise to engage an independent title company that may discover undisclosed title issues missed by the seller’s title company. This will allow for remedies prior to your purchase of the property.

The closing agent will request that you complete prior to closing and/or bring to closing:

Buyer

• Certified Funds made payable to the Closing Agent
• Two forms of valid identification (driver’s license or state issued identification card, passport, military identification)
• Proof of purchase of hazard (homeowner’s) insurance policy
• All documents as requested by the lender

Seller

• Certified Funds (if required), make payable to the Closing Agent
• Certificate of Occupancy (if required by municipality)
• Smoke Detector Certificate
• Invoices and paid receipts for unpaid taxes, utilities, assessments, utilities final readings
• Mortgage payoffs statements
• Proof of satisfaction for liens, judgments, mechanics’ liens, chattel mortgages
• Two forms of valid identification (driver’s license or state issued identification card, passport, military identification)

Your title insurance coverage is in effect as long as you or your heirs have an interest in the property, in some cases, even beyond.

At the closing, either your attorney or the closing agent will review all of the documentation for your home purchase. This will include the Closing Disclosure (CD), loan documentation, inspection reports.

The Seller will sign documents conveying the property ownership from them to you, (the Buyer).

All documents are prepared prior to the closing. Therefore, closings generally take thirty to forty-five minutes.