We have gathered these Frequently Asked Questions (FAQs) about Title Searches, Title Insurance, Escrow and Loan Closings.
Q. WHAT IS TITLE INSURANCE?
A. Owner's title insurance protects purchasers of real estate against title defects that may exist against the property. Lenders, or mortgagee, title insurance insures the lender as to the priority of its lien, meaning there are no other mortgages, liens or judgments recorded prior to their mortgage.
Q. WHAT ARE EXAMPLES OF TITLE DEFECTS?
A. Judgments, liens, unsatisfied mortgages, missing heirs, forgeries, unpaid taxes, etc. These are just a few of the title problems that a thorough search of the public records can uncover.
Q. WHAT DOES IT COST?
A. An owner's title insurance policy is typically based on the sales price of the property and the fees are sanctioned by the respective Department of Insurance. The coverage of the policy continues for as long as the insured holds an interest in the land or remains liable under any warranties of title arising from his or her subsequent conveyance. No further premiums are paid during the life of the policy. The premium for the policy is a one-time fee paid at the time of closing. The specific fees and regulations regarding title insurance can vary by state, so it's important to check with your local title insurance company or regulatory authority for the most up-to-date information.
Q. WHO PAYS FOR IT?
A. The party responsible for paying for the owner's title insurance policy can vary depending on the location and the terms of the real estate transaction. In many cases, the seller pays for the owner's title insurance policy as part of the closing costs. However, in some areas, the buyer is responsible for the cost of the owner's title insurance policy. Additionally, in some cases, the buyer and seller may negotiate to split the cost of the owner's title insurance policy. It's important to review the terms of your real estate contract and consult with your real estate agent or attorney to understand who is responsible for paying for the owner's title insurance policy in your specific situation.
Q. HOW LONG DOES IT TAKE?
A. With today's technology, we are able to close in as little as 7-10 days on some transactions. Providing a copy of the title policy you received when you purchased your property can also speed up the search process.
Q. WHAT DO I NEED TO PROVIDE WITH MY TITLE ORDER?
A. Please complete our order form, and provide the following: A fully executed sales contract, information on your existing mortgage(s), if any, such as loan number, phone number, etc., homeowner's or condo association information, if applicable, phone numbers of all parties involved and your prior owner's title insurance policy.
Q. WHAT DO I NEED TO BRING TO CLOSING?
A. Two forms of identification are required for all parties: a valid, state or government issued photo ID and one other form of ID. If you owe money at closing, those funds must be in the form of a wire, to ensure there are no funding delays with your closing.
Q. I'M OUT OF TOWN - DO I NEED TO BE AT CLOSING?
A. No. We can have your documents sent to a mobile notary or by overnight courier, to an affiliated title company or your bank for you to sign and have notarized. Just let us know when you place your order that you will need this service. (Please note: remote closings will have additional fees for third party services).
Q. WHEN IS THE BEST TIME TO CLOSE?
A. When possible, the earlier in the month the better. The myth that you save money by closing at the end of the month is simply that, a myth. You only pay interest on your new loan for exact number of days you have your mortgage, so close when it's most convenient to the parties involved.
Q. ANY QUESTIONS WE HAVEN'T ANSWERED YET?
A. Feel free to contact us.
If you have a question that we didn't address above, contact us at (727) 525-5676 and we'll get you the information you need.
