If you are refinancing your mortgage, simply submit your free title insurance and closing costs quote below and we will match you with a licensed professional title agent that will GUARANTEE you the lowest closing costs. All of our agents will "meet or beat" any closing quote you have by 10%.
The quotes are free and you have no obligation to buy or use our services... but we think you will find that we have the best rates available.
]]>There are two (2) standard forms of title insurance. The first covers owners and the other covers lenders. Each policy has specifically designed language protecting the property.
Owner's policies guarantee that the title is free from defects, encumbrances or liens unless it is specifically listed as an exception to the policy or if it is excluded from coverage. In the event that you suffer a loss or damages as a result of this defect (i.e. the title is unmarketable), the title insurance company would be responsible for those losses or damages. In the event that the deed offers no right of access to the land that is covered (which is a basic coverage) then the loss would be covered by the insurance company.
Owner's policies typically have a liability limit up to the price of the property that has been purchased, though coverage may be added or removed with various endorsements offered by title insurance companies. Depending on the state, the buyer of a property or the seller of a property may be required to pay the premium for title insurance. The details of this are typically available when signing a purchase and sale agreement (or other real estate contract which may be used). Typically loan officers, escrow officers, brokers or real estate attorneys will provide information to the consumer about the cost of both title search and insurance when the agreement is signed. Title insurance is valid until the property is transferred to a new owner, though only one premium is paid up front.
Lender's policies have certain elements that provide the lender loss coverage including (but not limited to):
A) The title is not in the borrowers name; has an existing lien or is otherwise unmarketable;
B) There is no access to the property
C) The mortgage is unenforceable or invalid because it is 'newer' than other liens
D) Mechanic's liens exist on the property
1. Foreclosure on the property
2. Invalid lien in the event of foreclosure
Various policies cover 1-4 family houses and cover losses that might occur from forged releases of mortgage or losses that are a result of encroachments due to improvements on properties that surround the property in question. Typically this would be the result of additions or other improvements that were done after the lender loaned money on the property that is insured.
To protect against this type of claim, you are encouraged to purchase 'buyers title insurance' which offers you protection from any 'defect' which may exist in your deed (or title) - anything which might offer others the opportunity to state that they have a legal right to say they are still part or full owners of the property which you now believe you own. Without the protection of title insurance, not only can your right to the property be challenged, but you could ultimately lose hundreds or thousands of dollars defending your right to the ownership of the property and in fact you could even lose the home (or land) that you've already spent thousands of dollars acquiring.
If you have taken 'owner's title insurance' you are protected from this - as the title insurance company will take action to clear up these issues or in a worst case scenario, pay for any losses you might suffer as a result of these issues. The best thing about owner's title insurance is that for a one time premium which you pay when you purchase a piece of property or a home, the policy remains in full force and effect as long as you or your survivors own the property.
A similar policy is issued to the person (or entity) that loaned you the funds to purchase the land or the home. A Lender's Policy is protection that is offered to the lender that protects them by any losses they might suffer as a result of any issues with the deed (or title).
Many borrowers ask why they would need title insurance if they were merely refinancing their mortgages - the answer is actually quite simple - the lender wants to verify that you have not incurred any additional liens on the property which would subjugate their position as the 'first' lien holder. For this reason though typically offered at reduced rate, title insurance is still required on a refinanced mortgage.
Another common question is often asked for people who are buying a home that is newly built - the theory being that since the home has never been owned before there should be no liens that could possibly be against it. This however is not necessarily true, as a builder owned the land that your home was built on and there is a possibility (however remote) that they may have used it as collateral on another loan, or that easements, liens or other items could cause future issues with your title may exist. Title insurance guarantees that you will be free of any losses from any issues that occur because of any of these instances.
]]>But, how do you know when you're buying a house that the property you are purchasing has a 'free and clear' title? Chances are you don't! All sorts of problems can be hidden away in the history of your new homes title - some that you may never discover until you go to sell the home or refinance it. These problems are often found in public records and may be the result of (a) unpaid mortgages, (b) wills, (c) divorce decrees, (d) court judgments, (e) tax claims, (f) mechanics liens, or (g) other claims on the property.
A title insurance company will routinely search public records and title insurance pays for the ability to search for problems that may exist in public records. This search will give you an assurance that your property is turned over to you without outstanding debts, taxes or other ownership issues that might be associated with your home. In addition, a title insurance company assures that as long as you own your property, if a problem should arise, that any legal fees that might be incurred by you as a result of this claim will be covered under your title insurance policy.
Most people do not know that they do not have to accept the title insurance that their mortgage company (or bank) is offering them. This simply is not true! You have the right to shop for your own title insurance policy and you can do that simply by seeking out the best policies at the best prices. Typically title insurance is built into your closing costs and often, when you are buying (or refinancing) your home, you're liable to not even take notice of it. However, like any other insurance company, most title insurance companies offer you the ability to obtain competitive rates and you have the right to select what company you want (and the price you want to pay).
When you are shopping for title insurance you should know the following things:
A) Contact more than one company and compare costs
B) If the property you're purchasing has been sold in the last 5 years, check with the company that currently holds the policy to see if they will offer you a discount
C) First time home buyers are often eligible for a discounted rate
D) Check with your homeowners' insurance company and see if they offer title insurance. Often, insurance companies offer discounts if you hold more than one policy with them;
E) Title insurance should cover your full purchase price, even if the value of the home is less than the purchase price
As with any type of insurance, you need to be an active consumer and make sure you are getting what you pay for.
]]>To understand how title insurance started, you'd have to first understand that historically property transfers were manually recorded into multiple books, one for 'grantors' and one for 'grantees'. Originally, these books were stored in archives, they were heavy, bulky (not to mention dusty) and were often maintained at courthouses or Clerks offices. Fortunately, today most of these records are recorded on computer and much easier to access and maintain.
In order to track records using the old system, a title search would start with the most recent deed, track that backwards until that person took possession of the deed, search back from that person, etc., etc., etc., until the original property owners name came up. Often, this would end when the main parcel of land was originally purchased or deeded and often this would involve significantly larger parcels of land (i.e. the development).
There are three basic types of title insurance and each covers different aspects of your title:
Each policy varies and it's critical that you carefully review your policy to see what protections are offered to you by the insurance company.
Title insurance premiums are paid only one time, when the policy is purchased. Payment of the policy is typically done by the buyer, but may be negotiated with the seller. In some cases depending on your local customs the costs may be split between the buyer and the seller. Ask your Mortgage lender or your realtor what the customs are in your area of Florida.
]]>Title insurance is meant to defend legal action against the property title or in extreme cases to reimburse the person or the company that was insured for the actual loss incurred up to the amount of the insurance. The first title insurance company was formed in 1853 in Pennsylvania and while most title insurance is carried within the United States, it is also available in Canada, Australia, United Kingdom, New Zealand, Korea, China, Northern Ireland, Mexico and throughout Europe.
Title insurance can insure any interest in real estate, including leased property, life estate property or an easement. With the exception of non-institutional lenders, nearly all real estate lenders do require title insurance to protect their collateral interest in real estate much as they would require fire insurance.
Because of deficiencies that exist in United States land record laws, title insurance is used to protect title ownership and encumbrances based on the registration of a title (deed) which occur as a result of transferring property or anything else that may affect the title. With a few exceptions any determinations that are made by the governing body, their determination is final and errors can lead to damages that typically cannot be recovered.
Most jurisdictions (excluding Minneapolis, Minnesota and Boston, Massachusetts) have opted for document recording that has no governmental determination of who owns the title to a given property nor do they have any method for determining whether a transfer is legal. Currently, the recording system provides that when a title transfer takes place, the transfer documents are filed with the local recorder (Registrar of Deeds or other agency) where the property is located. Once this is accomplished, the title is indexed by the name of the person transferring the property and the name of the person to whom the property is transferred and is considered a public record that can be obtained by anyone who wishes to request it.
In the event that the transfer instrument is not recorded, future buyers of the property may not know who actually owns the property and determining that ownership requires that scrutiny of the deeds and all documents that may be associated with it. This is often a cumbersome procedure and because of that errors will be compensated only to the limit of the liability insurance that may be carried by the responsible parties. Too often, opinions regarding title are not uniform and ensuring accuracy can be a long process.
Because of this, a recording system to create policies for those who purchase real estrate (or interest) is used by Title Insurers, providing that a premium is paid. In this case, employees or agents of the title company will handle researching all of the records that area associated with the title (deed) and make a final determination of ownership based on that search. This makes it much more efficient for real estate lenders who often have a significant investment in property and since the liability lies with the title insurance company (assuming there is a title insurance policy) the insurer pays for all costs that might be associated not only with these searches but any legal issues over the property.
]]>To protect against this type of claim, you are encouraged to purchase 'buyers title insurance' which offers you protection from any 'defect' which may exist in your deed (or title) - anything which might offer others the opportunity to state that they have a legal right to say they are still part or full owners of the property which you now believe you own. Without the protection of title insurance, not only can your right to the property be challenged, but you could ultimately lose hundreds or thousands of dollars defending your right to the ownership of the property and in fact you could even lose the home (or land) that you've already spent thousands of dollars acquiring.
If you have taken 'owner's title insurance' you are protected from this - as the title insurance company will take action to clear up these issues or in a worst case scenario, pay for any losses you might suffer as a result of these issues. The best thing about owner's title insurance is that for a one time premium which you pay when you purchase a piece of property or a home, the policy remains in full force and effect as long as you or your survivors own the property.
A similar policy is issued to the person (or entity) that loaned you the funds to purchase the land or the home. A Lender's Policy is protection that is offered to the lender that protects them by any losses they might suffer as a result of any issues with the deed (or title).
Many borrowers ask why they would need title insurance if they were merely refinancing their mortgages - the answer is actually quite simple - the lender wants to verify that you have not incurred any additional liens on the property which would subjugate their position as the 'first' lien holder. For this reason though typically offered at reduced rate, title insurance is still required on a refinanced mortgage.
Another common question is often asked for people who are buying a home that is newly built - the theory being that since the home has never been owned before there should be no liens that could possibly be against it. This however is not necessarily true, as a builder owned the land that your home was built on and there is a possibility (however remote) that they may have used it as collateral on another loan, or that easements, liens or other items could cause future issues with your title may exist. Title insurance guarantees that you will be free of any losses from any issues that occur because of any of these instances.
]]>Abstract of Title - A title abstract provides a brief summary of any and all transactions which might impact the title of a specific property.
Affidavit - A statement in writing that someone has sworn is correct to the best of their knowledge.
All Inclusive Title Insurance - Assures that all title insurance charges are included in the price that is quoted.
Assumption - Mortgage payments are taken over by a new person but the original borrower remains the person who is liable to the mortgage company for the debt.
Deed - When ownership is transferred from one person to another a deed provides a written record of that transfer.
Deed of Trust - When you obtain a mortgage in the South you will often see this term - it is an instrument that is used to secure real estate loans and allows a mortgage company to foreclose faster on the property than they would if they used just the mortgage.
Due on Sale Clause - When a property is sold or transferred and a mortgage is still outstanding on the property this provision requires that the loan be paid in full upon that sale or transfer.
Equity - Any balance of the properties value which exceeds the amount owed for mortgage or other liens against the property is termed owners equity.
Escrow - Allowing a person who is not involved in a property transaction to handle not only funds on behalf of the buyer and seller but also to handle documentation on their behalf. May also refer to funds that are kept on account by a mortgage company to ensure that payments of real estate taxes and/or insurance are paid on time and in full. Any items that are required to be escrowed as part of your mortgage must be disclosed on a settlement sheet when you are signing your mortgage documents.
Grantee - Acquisition of an interest in property by transferring a deed, a grant or other legally binding written agreement.
Grantor - Person who transfers interest in a property via a deed, grant or other legally binding written instrument to anther party.
Hazard Insurance - Insurance that protects a homeowner from fire and other similar damage as well as protection in the event that someone falls or is injured on your property.
Heir - A person who may have a claim against an interest in property, land, or other interest of a person who dies without a will.
Instrument - Any document that is written may be deemed an instrument.
Judgment - Any order that is passed down by a court.
Lien - A charge, a claim, a hold that is allowed upon land or property owed by a debtor.
Real Property - Buildings and the land that they are built on.
Reissue Rate - Title Insurance Premium that may be available at a reduced rate in cases where the person who currently owns the property was previously insured by the same insurer.
Survey - Land measurement to determine description, size and location of land and the resulting maps or drawings.
Title - The record of who owns and possesses a piece of land and the accompanying buildings.
Title Insurance Binder or Commitment - A policy designation that commits or binds the insurance company when certain conditions are met.
Title Search - Public records, court decisions and other records are examined to gain knowledge of ownership of any real estate.
Will - A written document properly witnessed, providing for the distribution of property owned by the deceased.
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