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| Below
are answers to some commonly asked questions regarding title insurance
which we hope will assist you in determining your title insurance
needs. If you have any questions that are not answered below, please
contact us. |
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| What
is title insurance? |
| Title
insurance protects against loss or damage resulting from defects
that affect the title to your home or place of business. |
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| Why
is title insurance important? |
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Title insurance protects the investment
you've made in your home or place of business. When you buy
property, the previous owner conveys title to you to evidence
your full legal ownership. Occasionally, a hidden defect in
the title or a mistake in a prior deed, will or mortgage may
give someone else a legal claim against your property. If
a claim is made against your property, title insurance can
save you time and money by:
- Providing a corporate
guarantee against insured defects;
- Paying all legal expenses
to eliminate any title defects;
- Paying any claim arising
from errors in title examination and recording; and
- Paying any loss arising
from hidden defects in title and defects not of record.
Your title insurance protection
is a permanent assurance that your ownership and use will
be defended promptly against claims, at no cost to you, whether
or not the claim is valid. |
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| What
is a title defect? |
| A
title defect is one of any number of things that could jeopardize
your interest. It could be an unsatisfied mortgage, lien, judgment
or other unrecorded claim against the property. It could arise
through easements, use restrictions or other existing covenants,
or it could be a hidden risk. |
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| What
types of hidden risks does title insurance protect against? |
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Title insurance generally protects
you against four kinds of hidden risks:
- Errors in the
public records such as incorrect information in
deeds and mortgages regarding names, signatures and legal
descriptions;
- Judgments, liens
and mortgages or any other claims against the property
or the seller which become the new owner's responsibility
after closing, such as unpaid taxes, assessments and other
debts to creditors;
- Claims to ownership
by the spouse of a former owner or by the "missing
heir" of a deceased owner who did not receive his share
of the estate; and
- Invalid deeds
or other transfers by sellers who did not actually own the
property or by previous owners who were minors or not mentally
competent.
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| What
risks are not protected by title insurance? |
| Both
the standard owner's policy and the standard lender's policy
are based on an examination of public records of the recording
district in which the land is located. Neither policy insures
against matters that could be disclosed by actual inspection
or survey of the property. These policies do not insure against
certain matters not shown by the public records such as unrecorded
easements, liens or money obligations, unrecorded utility rights
of way, public or private roads, community driveways and other
types of encumbrances, or against the rights or claims of persons
in possession of the property which are not shown by the public
records. |
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| Can
protection be obtained against matters not of record? |
| Upon
request, the title insurance company may agree to cover matters
that are disclosed by a physical inspection or a survey of the
property, subject to any exceptions that the inspection determines
to be proper. Due to the additional risk involved, a higher
premium may be charged for this type of coverage. This type
of coverage is called "extended coverage." |
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| Who
does title insurance protect? |
| There
are two basic types of title insurance policies - one for the
mortgage lender and one for the real estate owner. If a mortgage
is to be placed on your new home or business, the lender will
probably require you to purchase title insurance to protect
its position as a holder of a mortgage loan, but this lender's
title insurance policy doesn't protect the real estate owner.
You need to purchase an owner's title insurance policy to protect
your investment. |
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| How
much does title insurance cost? |
| You
pay a one-time premium for coverage that lasts as long as you or your
heirs own your property, or as long as you may be liable for any title
warranties you make. Owners title insurance is one of the least expensive
forms of insurance. In many cases the owner's title insurance policy
can be purchased at a reduced rate when a lender's policy is also
purchased. Our Rate
Calculator can assist in determining the cost of Title Insurance. |
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| When
is the title insurance policy issued? |
| The
owner's title insurance policy usually is issued after the deed to
the buyer is delivered and recorded. The lender's title insurance
policy is usually issued after the mortgage or deed of trust has been
properly executed and recorded. |
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| What
is a title search? |
| A
title search is a detailed examination of the public records concerning
the property, including deeds, civil and probate court records, judgment
indexes and tax records. The purpose of a title search is to determine
the seller's right to transfer ownership and to discover any claims,
errors, assessments, mortgages or other burdens or restrictions on
the property. |
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| What
happens if a claim is made against my title? |
| If
a claim is made against your title, you should notify the title insurance
company immediately, in writing, and include copies of all related
letters and documents. The title insurance company will either pay
the claim against your title, negotiate with the other party to settle
the claim or defend a court case related to the title. The company
will pay all legal costs incurred in defending your title. |
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| What
should I look for in selecting a title insurance company? |
| You
should select a company that has a sound reputation for paying
claims, experience in all phases of title insurance, and efficient
and dependable service to policy holders. Land Record Services, LLC and its underwriter,
Investors
Title Insurance Company, have an outstanding record in all
of these areas, and can also offer you many other superior services. |
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