Please check back often as we will be posting helpful tips, tactics and industry news that can help you grow your business.  Let’s start off with What is Title Insurance?

What is title insurance – It’s protection against loss if a covered defect is found in your title.  When you buy a home you are given title to the real estate which generally means you receive full legal ownership; but sometimes there could be a hidden title hazard.  Some examples could be a prior deed, will or mortgage that could give someone else a valid legal claim against your property.  Having title insurance provides a safety fence around your property.  Title Insurance can save you time, money, even your home.

Here’s how it works – When you buy real estate your lender will require a lenders title insurance policy. This covers the outstanding balance on the mortgage for the lender but does not protect you as the buyer.  It’s a good idea to get your own title insurance policy which is called an owners title insurance policy.  This will give you peace of mind and maximum protection in case there is a claim against your real estate.

The title search and exam – Is the first step in obtaining title insurance.  It’s a detailed search and examination of the public records concerning the real estate.  The purpose of the title search and exam is to verify the seller’s right to transfer ownership and to discover any liens, mortgages, claims, debts or other restrictions on the real estate.

Commitment to insure – Also called a binder is based on the results of the title search and exam.  It includes a summary of the condition of the title including current owners of record, any liens or title defects of record and other conditions that need to be met in order to insure the proposed transaction.  The title company will clear the conditions as shown in the title commitment prior to the closing.

What happens at the closing – Mortgage documents are signed, ownership of the property is transferred, title insurance is issued and coverage begins.