WHAT IS TITLE INSURANCE?

AFTER THE SOLD SIGN GOES UP.

What happens between now and the closing?

Loan Application: First, a loan application is made by the buyer and is submitted together with earnest money (down payment) to the Loan Company. A credit check and an appraisal of the property are usually required for approval.

Tax Check: Then, a tax check is made on what taxes are owed on the property.

Public Records Search: This is followed by a title search. Copies of public records are examined for verification of legal ownership and outstanding debts owed. These public records include deeds, deeds of trust, probate matters, divorce, heirs and bankruptcy.

Final Documents: Finally, settlement documents are prepared.

Closing: At closing, a lawyer oversees the transfer of the property title. Seller signs the deed, buyer signs the mortgage, the old mortgage is paid off and all parties including those performing services, i.e. seller, real estate agents, attorneys, surveyors, title company, etc. are paid. Title insurance policies are then issued to the homebuyer and the lender, assuring protection against losses due to adverse defects or undiscovered interests in the property title.

TITLE INSURANCE

Why Needed: Owning a new home is the most important investment you will ever make. So, you want to be sure that your property is free of any liens, claims or encumbrances.

Title Insurance: A Title Insurance Policy will protect your equity and home against losses due to adverse defects or undiscovered interests in the property title. Some common hidden risks protected under a title insurance policy are:

• False impersonation of the true landowner.
  
• Forged deeds, mortgages, wills, releases and other documents.
  
• Deeds and wills by persons lacking legal capacity.
  
• Deeds by minors.
  
• Invalid documents executed under expired power of attorney.
  
• Invalid deeds delivered after death of the grantor.
  
• Deeds by supposedly single persons but actually married.
  
• Fraud
• Federal/State estate inheritance and gift tax liens against prior owners.
  
• Unrecorded easements.
  
• Undisclosed heirs of former owners.

Loan Policy: Protects the lender's loan interest against losses due to unknown title defects. This title policy does not protect homeowner's equity.

Owner's Policy: Protects the owner's loan interest against losses due to unknown title defects. The Owners Policy Provides:

• Protection from Financial Losses due to claims against the owner's title, up to the face amount of the title policy.
• Payment of Legal Costs if the title insurer has to defend the owner's title against a covered claim.
• Payment of Successful Claims against the owner's title covered by the policy, up to the face amount of the title policy.

Just as lenders want security with their title policy, so should an owner protect the equity in the new home with a title policy. For a low one-time premium an owner can receive the protection of a title insurance policy against "hidden risks" or undiscovered interests. Ask us for an owner's policy.