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What is Title
Insurance?
Why do we
need Title Insurance?
What do we
Search?
What does the
Title Commitment supply you with?
What is the
Owners Policy and who pays for it?
What is the
Mortgage Policy and who pays for it?
What is
Title Insurance?
Insurance against loss resulting from defects of Title
to a specifically described parcel of property. Defects
may run to the fee (chain of title) or to encumbrances.
Why do we need Title Insurance?
-
Previous encumbrances/Mortgages
-
Liens, Judgments that attach to
the property
-
Someone else owns an interest on
the property
-
Documents were not properly
signed
-
Forgery
-
Fraud
-
Defective recording of Documents
-
Unpaid Property Taxes
-
A Recorded lien by the homeowners
association
-
Title is unmarketable
What do we
Search?
The Legal Description provided to us, enabling us to
search and review recorded documents affecting a
specific piece of property to determine the present
condition of Title, such as:
Example: Parcel overlapping onto neighbor’s property
Unpaid property taxes
Copy of Survey, if available
Once we have established the above you will receive a
copy of the Title Insurance commitment.
What does
the Title Commitment supply you with?
The Title Commitment supplies you with the
Legal Description of the property and the Owner of
Record. It also will show any open Loans and/or
Liens attached to the Legal Description, as well as
recorded Liens attached to the Owner of Record.
Example: Federal Tax Liens, State Tax Liens, Judgments,
etc.
Recorded encroachments of surrounding property.
Property Taxes, showing taxes current, last available
tax bill and/or tax delinquencies pertaining to
Legal Description.
What is the
Owners Policy and who pays for it?
The
Owner's Policy protects the interest of the purchaser of
real estate who will be shown as the insured party.
The fee for the ALTA Owners Title Insurance Policy
is customarily the responsibility of the
Seller.
What is the
Mortgage Policy and who pays for it?
When obtaining
a new loan your lender will require a Mortgage Title
Insurance Policy, insuring a mortgagee, or beneficiary
under a mortgage, against loss caused by invalid title
in the borrower, or loss of priority of the mortgage.
The Mortgage
Policy protects the interest of the mortgage lender
listing the lender as the insured party and protecting
the lender against any:
-
Lack of
right of access to and from the land
-
Insures
lender of first lien position
-
Insures
lender against forgery
-
Fraud
-
Recorded Mechanics Liens
The fee for the ALTA Mortgage Title Insurance Policy is
customarily the responsibility of the
Buyer.
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