What is title?
Title is a collective term for all your legal rights to own, use, and dispose of land. Title includes all previous ownership, uses, and transfers. To legally transfer real estate property, a title search must be performed and, in most cases, the title must be found free of any circumstances that could endanger your right of ownership.
What is an abstract?
Also known as a title search, it is a check of public records to be sure that the seller or borrower is the recognized owner of the real estate and that there are no unsettled liens or other claims against the property.
What is a lien?
A lien is a legal claim against property that must be satisfied when the property is sold.
What is title insurance?
Title insurance protects against the possibility of future loss should your legal rights to your property be challenged. There are two types of title insurance: a lender's policy and an owner's policy. The lender's policy protects the lender's interest in the property for the amount of the mortgage loan. An owner's policy protects the home buyer. While a lender's policy is often required to grant a mortgage loan, an owner's policy is typically optional.
What are some examples of why title insurance is needed?
There are many title issues that can arise to cause the loss of your home, business or mortgage investment.
Some of these examples include:
1. False impersonation of the true owner of the land
2. Forged deeds, releases, etc.
3. Instruments executed under fabricated or expired power of attorney
4. Deeds delivered after death of grantor or grantee or without consent of grantor
5. Deeds to or from a defunct corporation
6. Undisclosed or missing heirs
7. Misinterpretation of wills
8. Deeds by persons of unsound mind
9. Deeds by minors
10. Deeds by Aliens
11. Deeds by persons supposedly single but secretly married
12. Birth or adoption of children after date of a will
13. Surviving children omitted from a will
14. Mistakes in recording legal documents
15. Want of jurisdiction of person in judicial proceedings
16. Discovery of will of apparent intestate
17. Falsification of records
18. Claims of creditors against property sold by heirs or devisees
19. Deeds in lieu of foreclosure given under duress
20. Easements by prescription not discovered by a survey
21. Deed of community property recited to be separate property
22. Errors in tax records, e.g., listing payment against wrong property
23. Deed from a bigamous couple
24. Defective acknowledgements
25. Federal condemnation without filing of notice
26. Corporation franchise taxes, a lien on all corporate assets
27. Erroneous reports furnished by tax officials
28. Administration of estates of persons absent but not deceased
29. Undisclosed divorce of spouse who conveys as consort's heir
30. Marital rights of spouse purportedly, but not legally, divorced
What are the costs?
What are the types of tenancies?
1. Sole Owner- One person in title.
2. Tenants in Common - More than one person in title (with no rights of survivorship). Each person has a percent interest that can be conveyed to anyone else. If no percent interest is specified, it is assumed each has an equal interest in the property. Each tenant in common can convey his/her interest separately to someone else without the consent of the other tenants in common.
3. Joint Tenants - More than one person in title (with rights of survivorship). Each person has an interest in the property. Upon the death of one joint tenant the property automatically passes to the surviving joint tenant(s). The last surviving joint tenant can convey the property to whomever he/she wants. To convey the property requires the consent/signature of all joint tenants.
4. Tenants by the Entirety - Only for married couples. Upon the death of one spouse the property automatically passes to the surviving spouse. Each of these tenancies has different tax consequences upon the death of one of the parties to the deed, and different consequences for the purpose of collecting on judgments. You should consult with your tax advisor if you have questions regarding these tax consequences.
What is RESPA?
RESPA: Real Estate Settlement Procedures Act; a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.
What will I need at closing?
At minimum, you will need to have a valid State issued photo ID and one other form of verifiable identification. A copy of these will be helpful to give to the closing agent. If applicable, your lender, broker, or real estate agent will notify you of other required items such as certified funds, tax bill copies, etc.
When will my loan fund?
Purchase transactions fund the day of closing. Refinance transactions on primary owner-occupied homes fund on the 4th business day according to RESPA guidelines. Refinance transactions of non-owner occupied investment homes or vacation homes fund on the same day of closing.
I'm getting money back from my transaction; How do I receive it?
Proceed checks, along with any other creditor checks (if applicable), are sent to the primary address listed unless otherwise designated, via FedEx Overnight Delivery. A bank wire is also a possibility in most circumstances. All names that are party to the mortgage must be listed on the designated bank account. You may supply the closing agent with a voided check at settlement.
Can you refer me to a mortgage or real estate professional?
Yes. TITLE, inc. has built relationships with many real estate related professionals across the country and would be happy to refer you to one. We do not benefit monetarily for the referral of any client. We only hope that you consider TITLE, inc. to perform your title and settlement.
Is TITLE, inc. an independent title agency?
Yes. TITLE, inc. is 100% independently owned and operated. We are firm advocates of educating the public of their legal right to choose their title agency. Our commitment to service and quality is the reason we are still a leader in the industry.
I'd like to have TITLE, inc. perform my title and settlement. How do I get started?
Thank you for taking the time to educate yourself on the title insurance process. Regardless of the type of real estate transaction, it is your legal right to choose your title agency. Simply tell your mortgage professional and/or real estate agent that you have chosen TITLE, inc. as your title insurance agency. We have created a TITLE, inc. certificate that can be electronically mailed to your real estate agent or finance professional. It is also recommended you call us with their contact information so we may get the necessary documents to start your title order.