Title Info

Because your home is probably the most important investment you will ever make, you want to do all you can to protect it. One of the ways you can do that is through homeowner's insurance. But even the most comprehensive homeowner's policy won't help if your right to the property itself is questioned. That's why owner's title insurance should be an essential part of the home-buying process. Title Insurance Title Insurance is an insurance policy that protects your legal rights to own, posses, use, control and dispose of land. Title Insurance Commitments For Sales our search covers the previous 40 years with particular detail to easements, restrictions, mortgages, liens and taxes, and estates. For Refinances abbreviated searches are allowed; this speeds up the process so lenders can have a faster turnaround time on loan closings. Owner's Policy An Owner's Policy protects the interest of the owner of real estate and lists the name(s) of the new buyer as the insured party. As the new buyer, you will want assurance from the seller that the title is marketable and free from liens that could create problems in the event you should decide to sell or refinance the property in the future. The Owner's Policy does assure that the title is marketable, and provides for defense of the title at the expense of the insurance company, if it is challenged or questioned by others. Mortgage Policy A Mortgage Policy protects the interest of the mortgage lender and lists the lender as the insured party. All lenders require the borrower to provide proof and assurance that the loan being applied for will be in the correct lien position. If the validity of the lien of mortgage is challenged or questioned, the policy provides for defense of the mortgage interest. The Difference The Owner's Policy is always in the full face amount thereof, and continues as long as the owner or his/her heirs have an interest in the property, while the Mortgage Policy protection terminates immediately when the loan is paid off. Cost of Title Insurance Title Insurance rates are filed with the state. The cost depends upon the face amount of the policy issued. The face amount is normally the purchase price/market value of the real estate in the case of Owner's Policy, and the amount of the loan in the case of a Mortgage Policy. When property is transferred or sold at a later date and an Owner's Policy is surrendered, an Owner's Policy will be issued protecting the new purchaser at a reduced premium. It is in one's best interest to find a prior policy and produce it to the title company for credit. When an Owner's Policy and Mortgage Policy are issued simultaneously on the same land, special reduced rates are applicable.