Q: What is title insurance
A: Title insurance provides protection against loss if a covered defect is found in the title to your property.
Q. What defects are covered?
A. As an example, title insurance provides you with protection against risks associated with mortgages and judgments which have not been properly indexed in the land records, as well as claims against the property arising from forged or invalid deeds and claims of "missing" heirs.
Q. Won't the search discover all defects?
A. Not necessarily. A title search can only determine what is of record. A title search cannot reveal whether a person was competent to sign a prior deed, or whether a deed was forged or altered.
Q. Do I pay a yearly premium?
A. No, you pay a one-time premium for your owner's title insurance as part of your closing costs.
Q. What is a title search?
A. A title search is a detailed examination of the past transactions that are on public record among the Land Records of each county. These records include deeds, mortgages, liens and other public documents.
Q. How long does title insurance coverage last?
A. Title insurance for the owner of the property lasts for as long as you or your heirs own interest in the property. Title insurance obtained by your lender lasts until the mortgage is paid in full.
Q. What are some of the common title problems?
A. False impersonation, forged documents, undisclosed or missing heirs, deeds by persons of unsound mind, surviving children omitted from a will, mistakes in recording legal documents, deeds in lieu of foreclosure and errors in tax records are examples of common title problems.
Q. How can I protect myself against defects in the title?
A. Your best protection is to purchase Owner's Title Insurance. In fact, a policy of Owner's Title Insurance has become standard practice in many states.
Q. How much does Title Insurance cost?
A. Considering the degree of protection, a title policy is relatively inexpensive. The premium is paid just once, at settlement, for protection as long as you retain title, and beyond.
Q. How long does Closing take?
A. If you are purchasing a home or refinancing your existing mortgage the Settlement takes less than an hour. However, the steps prior to closing usually require a few weeks to complete.
Q. What do I have to do during the Closing process?
A. We'll contact you to set up your appointment at your convenience. From time to time, you may be contacted for information. The Settlement Coordinator will explain all of the documents prior to you signing. Please bring your photo ID with you.