Title FAQs
What is a Title?
When you purchase a home, you are really purchasing the title to the property—which is the right to occupy and use the space. That title may be contested based upon past rights and claims asserted by others. These types of claims can cause you to lose money or even worse… lose your home.
What is title insurance?
Title insurance is your policy of protection against loss if any of these problems — even a “hidden hazard” — results in a claim against your ownership.
What is a title search?
A detailed examination of the historical records concerning a property including deeds, court records, property and name indexes, etc. intended to verify the seller’s right to transfer ownership and to discover any claims, defects and other burdens on the property.
How does title insurance protect my investment if a claim should arise?
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense — and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.
What kinds of problems can a title search reveal?
A title search can show a number of title defects and liens, as well as other encumbrances and restrictions, which include (but not limited to) unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
What is a closing?
The event where the title to a property is transferred from seller to buyer. It involves the completion of all the necessary paperwork to finalize the agreement between buyer and seller including financial issues, closing, transfer of title and filing with the local authority.
Are there any problems that a title search cannot reveal?
There are some “hidden hazards” that even the most diligent title search may not reveal including fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names, clerical errors in the records and many more. Title insurance protects your right to ownership.
What is title theft?
Property title theft most commonly occurs when one person fraudulently puts the deed to a house in another person’s name, refinances a home’s mortgage, or takes out a brand new mortgage using a home’s value as collateral.
