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FAQ’s

Southern Title

FAQ’s

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?
No other property has a useful life that compares with the life of the land. Owners of goods may change their location at will, but land is stationary. Because land is permanent, various rights in land may have been acquired by others by the time you come into possession. So in order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding. Owner’s title insurance protects you from financial loss caused by title problems. Therefore the Title Insurer, without expense to you, will defend you against any attack on the title to your property as insured.
What is a title ?
A title is the foundation of property ownership. It is the owner’s right to possess and use the property.
Why is transferring the title to real estate different from transferring the title to other items, such as a car?
Because land is permanent and can have many owners over the years, various rights in land may have been acquired by others (such as mineral, air, or utility rights) by the time you come into possession of it, even if the land has never before been built upon. In order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding.
What is a title search?
A title search is a detailed examination of the historical records pertaining to a piece of property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of a title search is to verify the seller’s right to transfer ownership, and to discover any claims, defects and other rights or burdens on the property
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. Among these are unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
Are there any problems that a title search cannot reveal?
Yes, there are some “hidden hazards” that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other “hidden hazards’ include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names or clerical errors in the records. These defects can arise after you’ve purchased your home and can jeopardize your right to ownership.
How does title insurance protect me?
The title insurer will, at no expense to you, defend against the following possible attacks to your right of ownership:

 

  • Forgery
  • Fraud
  • 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?
Real Estate Title Insurance is your policy of protection against loss if any problems results in a claim against your right to ownership – even a “hidden hazard”.
How long does my coverage last?
Premiums for most other forms of insurance are recurring and must be paid for periodically. Title insurance has only ONE premium, paid at the time of settlement. That single premium will protect you for as long as you or your heirs retain an interest in the property and, in some cases, even beyond.
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.

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