What
do Title Insurance Companies Do?
Fire insurance protects
you against losses from fire. Collision insurance guards you
against the cost of a damaged car. Theft insurance...well
you get the idea.
Title insurance protects
your title to real estate that you are about to acquire. To
understand why title protection is essential, we need to consider
real estate for a moment.
Real estate has always been
considered our most valuable possession. It is so basic a
form of wealth that many special laws have ben enacted to
protect ownership of land and the buildings which stand on
the land.
You should realize whenever
you buy property that the owner who is selling it to you has
extremely strong rights as do their family and heirs. Also,
there may be others in addition to the owner who have "rights"
in the property you are going to buy, perhaps governmental
bodies, or contractors, for example.
Some of the things a title
search uncovers are any unpaid taxes or mortgages, judgments
against previous owners, easements, and many other court actions
or recorded documents which can affect title to real estate.
Common
Questions include:
Q. As a home
owner what protection do I have on the mortgagee's title
insurance?
A.
The mortgagee's title insurance policy purchased by you for the lender protects
only the lender from title defects. An additional home owner's
title policy is highly recommended for your personal protection.
Q. What is a Statement of Information?
A.
Statements of Information provide title companies with the
information they need to distinguish the buyers and sellers
of real property from others with similar names. After identifying
the true buyers and sellers, title companies may disregard
the judgments, liens or other matters on the public records
under similar names.
Q. What will I need to bring with me to the Title Company when I
go to sign my papers?
A.If
you need money to close your escrow, you will need to bring
your cashier's check, a valid driver's license, State I.
D. or valid passport or Military I. D.
Q. What
is Deed of Reconveyance?
A.
A deed of Reconveyance is a recordable document issued by
your previous lender in conjunction with the pay-off of
your loan. This document is recorded at the county recorders
office and shows that the mortgage in your name has been
released from the property and paid in full.
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