Frequently Asked Questions -

How much does Settlement Cost?

Settlement costs, such as Title Insurance and State/County Recordation Taxes can vary depending on the type of transaction, jurisdiction of the property and the amount of your loan.  For a quote of our services, please contact us. We will be happy to prepare a FREE quote for you.

Don’t forget that by providing a complete copy of the Owners Title Insurance Policy, you may be eligible for a discount on your Title Insurance Premium.

 

What can I expect during the closing process?

 Feel free to check out this brief video that explains what happens during the closing process.

What is a Title?

A title is the evidence, or right, that a person has to the ownership and possession of land.

It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use.

Do I need Title Insurance?

We STRONGLY recommend it! Title insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.

If there are problems found after a thorough title search which stand in the way of a clear title, it is up to the owners and their attorneys to clear them up before settlement. Although, a title search is based on public record, it may not show everything which could affect the title to the property. Here are just some of the hidden risks or clerical mistakes which could seriously endanger the title: Fraud and Forgery, Errors in Records of Clerical Work, Owners Rights to Property, Liens on Property, Marital Status of Owner Incorrectly Given, Undisclosed Heirs, Mental Incompetence or Minors, Defective Deeds, Confusion due to Similar or Identical Names, etc.

Title Insurance Protects Against these Risks - You are protected against these risks and
insured against loss. If your title is ever questioned or disputed, the title insurance company stands ready to defend it in two ways:

1.  If it is necessary to enter a legal defense of your rights under the policy in any lawsuit or proceeding adversely affecting the title as insured, the title insurance company employs legal counsel to take such action for you, completely at their expense.

2.  If a loss is sustained, you are protected up to the full amount of your policy, which is usually equal to the full purchase price you paid for the property.

What is the difference between a Lender’s Policy and an Owner’s Policy?

Your lender likely will require that you purchase a Lender’s Policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it.  Lenders Title Insurance Is Not Enough - A lender who has a large security interest in the property requires that you, the borrower/buyer purchase a title policy to assure the lender that the mortgage is a valid first lien, and that the lender can be certain about the title in the event of foreclosure. However, this policy does not benefit the owner in the event of a claim. An Owner’s Policy on the other hand is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner’s title policy covers the full cost of any legal defense of your title.

What items are needed before and/or at closing?

You will want to have these items sent to our office prior to closing or in hand when you
come to the closing (please confirm with our office prior to settlement):

Borrower (refinance)

Photo identification (valid passport, driver’s license, or state-issued identification card)

Invoices/statements for any additional payoffs, unpaid taxes, utilities or assessments

Cashier’s check(s) for closing costs (if applicable)

Buyer/Seller (purchase)

Photo identification (valid passport, driver’s license, or state-issued identification card)

Final ratified contract and all addendums

Invoices/statements for any payoffs, homeowners association or condo dues, unpaid taxes, utilities, assessments, and most recent utility meter readings

Proof of satisfaction of any mechanics’ liens, chattel mortgages, judgments or mortgages that were paid prior to the closing

Cashier’s check(s) for closing costs (if applicable)