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Services { Title Insurance & Closing } What is Title Insurance? Like fire insurance that protects you against losses from a fire, title insurance protects the title (or ownership rights) to your property against undiscovered defects. While most title defects are discovered during the title search, there are several kinds of defects that can go undetected, such as fraudulent documentation or undisclosed heirs. Unlike other types of insurance, there are no annual payments to keep your title insurance policy in force. The premium is paid only once, at the time of the property purchase. What is a Title Search? Property owners, as well as heirs and creditors, have extremely strong rights according to the law. All steps must be taken to ensure that the property you are buying is free and clear of any ownership claims against it. (These can include unpaid taxes or mortgages, judgments against previous owners easements or other court actions, or any recorded document that can affect the title to the property.) Before you buy a property, Title First will conduct a title search of all the public records associated with the property to assure that the property is legally able to be sold. If any title issues are found, Title First will clear them up before the property is transferred to you. How does Title Insurance protect you? Although title agencies conduct thorough title searches, there are some title defects that cannot be foreseen, such as a forged deed. A title policy will protect you from these defects. If the title (ownership) to your property is threatened by forgery, confusion due to similar names, errors in the records, etc., your title insurance entitles you to the cost of defending your title in court and the settlement of any claims that may result. How does Title Insurance differ from an Attorney's Opinion? An "attorney's opinion" is an assurance as to the condition of title made by a licensed attorney. This evidence of title, as with the abstract of title, is not a title insurance product and is subject to additional limitations. The opinion covers neither hidden defects in title nor forgery and fraud. Liability related to attorney opinions involves suits against the preparing attorney in negligence. Recovery on a loss may be obstructed by the availability of the attorney and the financial ability to pay judgments obtained against the attorney. What is the Role and Responsibility of the Closing Agent? When a title order is placed, Title First, acting as your closing agent, coordinates the activity and documentation from a variety of participants, pulling each piece of a transaction together: From the seller and buyer or their Realtors® - the title agent asks for a copy of the sales contract, original termite inspection, names of gas, certification and home warranty companies, attorney information, lenders and payoff information (if available), and the new homeowner's insurance agent. From the Lender - the title agent asks for the complete loan package and closing instructions, including all requirements for proper disbursement of funds. With the information that these participants provide, Title First prepares all legal documentation, including the mortgage, settlement statement, various notes, affidavits, riders, etc., as needed. Additionally, all disbursement checks for the transaction are prepared and distributed by Title First acting as the escrow agent. What happens DURING the Closing? The Title First closing officer meets with the buyer/borrower and their representatives, to facilitate their signing of all documentation that is necessary for the title to be transferred from one party to the other. (Documentation includes anything relating to the loan, the property, and the title.) In this important step, it is the closing officer’s job to help all parties understand what they are signing. Title First then finalizes the deposits, wire transfers and the checks, and also makes copies of all documents, which will be filed at the recorder’s office, and presented to the buyers and sellers and their representatives. What happens AFTER the Closing? Title First records the deed and the mortgage at the courthouse (returning the original recorded deed to the new owner and the mortgage to the lender), and prepares the owner's and lender's title policies. Following the recording of the deed and mortgage, the buyer will receive (via mail) the original recorded deed and the original title insurance policy, if applicable. It is wise to keep all of these documents in a safe place. |
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