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What is a title search? A title search is the first step in the process. It is an extensive search of the subject property by a careful examination of the public records in an effort to assure customers there are no defects or risks that may hinder their clear title or our ability to issue title insurance.

What is a commitment for title insurance? A commitment for title insurance, also sometimes referred to as a “Binder”, is a document created and issued by the title company that details the findings from the title search. This document sets out any requirements that must be met before a title insurance policy can be issued. Some examples include payoffs of outstanding mortgages, judgments or liens or any necessary corrective documents. Recording of the instruments to be insured, i.e. deeds, mortgages and releases will be required.

What is title insurance? Title insurance is a form of insurance issued to protect the property owner from claims that may arise from past or present. Even with thorough record searches, there are cases where title can be compromised. Some examples include, but are not limited to forged or erroneous recorded instruments, unpaid liens, documents executed under invalid or expired powers of attorney, or undisclosed divorces or heirs. The title policy is issued for protection, but should a claim be made, the insurer will reimburse the insured up to the face value if their policy. Title insurance is unique in that its premium is paid one time, at closing, and covers you and your heirs for the entire time you own the property, up to the date of issuance of the policy. Title insurance is a contract that insures loss or damage over defects, on or before the date of policy, such as unmarketability, lack of priority of a mortgage or unenforceability of a mortgage.

 

What is a title policy? Below are two types of title policies.

Loan/Mortgage Title Policy- These are often required by many loan institutions. It aids in securing the loan and protects the lender against any loss due to defects in title. However, it does not protect the owner.

Owners Title Policy- This policy is issued to the purchaser in the transaction. This is important because if claims arise from possible defects in title, the buyer is protected. A loan policy only benefits the lenders interest in the transaction. This is the cheapest insurance you will ever buy! The premium is only paid one time for the policy issued. This policy will protect you forever from issues that happened on or before the issuance of the policy.