Why do I need title insurance?
A title insurance policy guarantees that the title to the property is free of “hidden” liens, hazards or human errors. When title insurance is purchased an experienced title examiner performs a comprehensive search of the public land records to determine if any liens or other encumbrances are attached. Although this search is intended to report all material title objections, there is always a chance that the substantial issues may go undetected. For example, an unknown heir of a previous owner who has a valid claim against the property, unrelinquished marital rights of previous owners, or invalid signatures. An Owner’s policy protects your interest in the real property against such unforeseen threats to your ownership.
To protect against risk, a lender will require assurance that the title to the property is clear; and this is done through the issuance of a loan policy. The lender’s policy covers the lender only, while the buyer is unprotected without the issuance of a separate owner’s title insurance policy.
For a one-time premium, paid during the closing process, an owner’s title insurance policy protects against future losses arising out of events that may have happened in the past. Your policy serves as a written guarantee that your underwriter will undertake, at its own expense, the defense of your title in all legal actions or proceedings alleging title to be other than as insured.
What does Title Insurance Cover?
* Forged deeds, releases or wills
* Fraud in connection with execution of documents
* Clerical errors in recording legal documents
* Wills not properly probated
* Undisclosed or missing heirs
* Dower or curtsey rights of ex−spouses of former owners
* Unsatisfied claims not shown on record
* Deeds executed under expired or false powers of attorney
* Liens for unpaid taxes
What is a Title Search?
A search made by a title company to determine whether or not the seller actually owns the property. The search will also provide information such as the history of ownership to the property, and determines if any liens, open permits or illegal extensions exist on the property.
Pre-settlement Check List
Hazard Insurance Policy – Your lender may requires that a current hazard homeowner’s insurance policy be in place before your settlement.
Pest Inspection – Inspections usually have to be performed for purchase transactions. The sales contract indicates which party is responsible for the order and delivery of the inspection and invoice. Please note that inspections are typically required for loans closing under a Veteran’s Administration program. Check with your lender.
Lender Documents – To prevent possible delays in closing, it is imperative that the purchaser furnishes any necessary documentation to their lender for final loan approval. It is also a good idea to bring any documents you receive from your lender (estimates, truth in lending, lock−in letters, etc.) to closing.
Certified Funds – A cashiers or certified check made payable to Champion Title is required to cover closing costs and the remainder of your down payment. A wire transfer is also an option so please contact us for further information.
Photo ID – A valid government−issued photo ID, such as a driver’s license or passport , is required at all settlements.
Utility Notice – Purchasers must contact their utility companies to open or transfer power, gas, and water accounts. Utilities should be turned on for purchasers’ walk through so they can ensure appliances and heating/cooling systems are functioning.