For the vast majority of us, buying a home is the largest single investment we will ever make. Most homeowners protect their investment by insuring them against hazards such as fire, theft, and weather damage. But, there is another hazard that can pose an even greater risk to home ownership.
Defects in the title to your property.
Unknown or hidden claims, defects and other rights or burdens can cause you to lose part or all of the investment in your home. Fortunately, there is a way to protect your investment. It comes in the form of title insurance.
To help assist you in your concerns and thoughts involving title insurance, here is a list of frequently asked questions regarding the industry of Real Estate Title Insurance.
If there are any questions or concerns that we have not covered, please Contact us. We are happy to answer all your questions and concerns.
Why is title insurance necessary?
What is a title ?
Why is transferring the title to real estate different from transferring the title to other items, such as a car?
What is a title search?
What kinds of problems can a title search reveal?
Are there any problems that a title search cannot reveal?
How does title insurance protect me?
- Loss because of impersonation
- Indexing or filing errors in the clerk’s office
- Guardianship and probate issues arising from heirs/devisee’s of former owners
- Boundary disputes (Surveyor’s errors)
- Title Examiners’ oversights
What is Real Estate Title Insurance?
How long does my coverage last?
What are the costs involved?
Closing costs are the expenses that buyers and sellers normally incur to complete a transaction in the transfer of ownership of real estate. These costs are in addition to the price of the property, and are calculated as part of your final closing figures. Closing costs are customarily, but not always, divided between the buyer and seller according to the pre-printed paragraphs within the Contract for Purchase and Sale.
Charges vary in different sections of the country, but generally the cost of title insurance (including the search, examination and related services) amounts to about one percent (1%), or less, of the cost of the property.
FHA and VA Loan Closings
FHA and VA do not allow the buyer to pay certain items in connection with the loan. The seller will have to pay some of these “unallowable” closing costs for the buyer. Some of these fees may include:
A reduced title rate, called “reissue rate,” is provided on refinance loans for borrowers who provide a copy of their Owner’s Policy of Title Insurance. This reissue rate is also given to a seller if they have owned their home less than three years and provide their Owner’s Policy of Title Insurance. The reissue rate is based on the original owner’s policy versus the new title policy.
Ultimately, the primary role of a title company is insuring title to real property. Our staff has the expertise to make the process go smoothly and will handle your transaction with knowledge, professionalism, and courtesy.