Title Insurance
 FAQ's

Question: "What is a title examination, or title search?"
Answer: It's a close examination of all public records that involve title to the real estate you are purchasing. The person conducting the search looks at past deeds, wills, and trusts to make sure the title has passed correctly to each new owner. The examiner tries to verify that all prior mortgages, judgments, and other liens have been paid in full.

Question: "What If There Are "Clouds" on the Title?"
Answer:  If a problem, called a "defect" or "cloud" on the title, is found, it should be corrected prior to closing. For instance, a previous owner sold the property 15 years ago. His wife was listed on the deed but for some reason did not sign-off at closing. Her interest in the property must be removed to clear the title.  A title search should uncover other potential problems or nuisances, such as rights others may hold (right of ways, view easements, power line easements, mineral rights), claims by prior undisclosed heirs, and pending legal actions.

Question: "If the title looks good why do I need title insurance?
Answer:  Because no one is perfect.  Even an expert title examiner can miss a defect on the title that might create problems for you later.

Question: "What does the policy cover?"
Answer: Problems that did not show up during the title search or were missed by the examiner and errors in public records.

Question: "What if problems come up after closing?
Answer:  The policy will pay your legal fees if you must go to court to defend your deed.  If you lose the property the insurance will pay you for the loss up to the amount of the policy.

Question: "What isn't covered?
Answer:  A title insurance policy does not cover defects that occur after you purchase the property.  Policies often exclude problems having to do with easements, mineral and air rights, and liens. Be sure to ask for an explanation of all exclusions, and a recommendation as to which items should be cleared up prior to closing.  You may wish to have your attorney review the title work prior to closing.  your lender will also review the title work prior to closing.

Question: "Do I have to buy title insurance?"
Answer: Not if you're paying cash for the property. If you're obtaining a mortgage the lender will require a policy to cover its interests.  The lender may or may not require you to buy a policy for your own protection.

Question: "To whom is the policy issued? Who is paid if there's a problem?"
Answer:  A lender policy is usually issued for the amount of the mortgage. It pays the lender if a problem surfaces. An owner's policy covers the property's full sales price and insures the new owner against losses.

Question: "Who pays for title insurance?"
Answer: Normally, the seller pays for an owner's policy and the buyer pays for a simultaneously issued lender's policy.   Sellers may be able to save money on the title search and policy by turning in their old policy to the current title company. 

Question: "How often must I pay the premium?"
Answer: Title insurance policies are paid in-full with a one-time fee which is usually part of closing costs.

Question: "Am I protected if my home increases in value?"
Answer: Ask about inflation riders for your policy. They increase the coverage amount as the property's value increases.

We have many new changes are in store for this site over the next few months.  We are developing a full menu of services for every type of real estate investor and seller.  Be sure to stop back often and feel free to comment on the development of this site and the services.  We welcome your recommendations of how we can serve you better.