What is Title?

The title to a piece of property is the evidence that the owner is the true and lawful owner of the property.

What is a Title Search?

A title search is a search of public records to ascertain the status of a title with regard to who owns the property. As part of a title search, a Tax Search is performed to determine the status of the property taxes of the property.  A Judgment/Lien search is performed to determine if there are any mortgages, judgments or other liens of record that pertain to the property. After the searches are completed, a Commitment to Insure is issued.  Provided that all of the requirements in the commitment are met, the title company can issue the requested title insurance.

 What is Title Insurance?

Title Insurance is an insurance policy that protects loss should the condition of the title of the land be other than as insured. It protects you against financial loss in the event that your ownership of the property is challenged.  It also protects against hidden title defects that existed prior to the date of your policy.

What does Owner’s Title Insurance protect against?

Even the most thorough title search might not reveal certain hidden hazards that may emerge after closing. Owner’s Title Insurance protects you against those issues. Such issues could be as follows:

      1.   Forged deeds in the chain of title

      2.  Documents executed under an expired or falsified power of attorney

      3.  Unknown heirs of previous owners who claim ownership to the property

      4.  Mistakes in public record

An Owner’s Policy is purchased ONE TIME and it stays in effect as long as the policy holder or their heirs have interest in the property.

What does Lender’s Title Insurance protect against?

Lender’s Title Insurance protects your mortgage lender against the same hidden hazards of title, but it also insures the lender that in the event you forfeit on your mortgage, there will be no clouds to title that would prevent them from foreclosing on the property. Lender’s Title Insurance DOES NOT protect the owner of the property.

What types of First American coverages are there and what protections do they afford?

Standard Policy Coverage:

  1. Forgery and impersonation
  2. Lack of competency, capacity or legal authority of a party
  3. Deed not signed by a necessary party (co-owner, spouse, corporate office or business partner)
  4. Undisclosed (but recorded) prior mortgage or lien
  5. Undisclosed (but recorded) easement or use restriction
  6. Erroneous or inadequate legal description
  7. Lack of a right of access
  8. Deed not properly recorded

Extended Policy Coverage:

  1. Off-record matters, such as claims for adverse possession or prescriptive easement
  2. Deed to land with buildings encroaching on land of another
  3. incorrect survey
  4. Silent (off-record) liens (such as mechanics’ or estate tax liens)
  5. Pre-existing violations of subdivision laws, zoning ordinances or Covenants, Conditions and Restrictions

EAGLE Policy Coverage:

Subject to availability in your locale, First American’s EAGLE Policy covers all of the above risks, in addition to the following:

  1. Post-policy forgery
  2. Forced removal of improvements due to lack of building permit (subject to deductible)
  3. Post-policy construction of improvements by a neighbor onto insured land
  4. Location and dimensions of insured land (survey not required)

 

**As with any insurance contract, the insuring provisions express the coverage afforded by the title insurance policy and there are exceptions, exclusions and conditions to coverage that limit or narrow the coverage afforded by the policy.  Also, some coverage may not be available in a particular area due to legal, regulatory or underwriting considerations.  Please contact us for further information.

 

How much does Title Insurance cost?

The cost of title insurance varies depending upon desired coverage and the location and the value of the property.  Please check our rate calculator.