Who chooses my title insurance company?

You have the right to choose whatever title insurance company you would like.  In a buy/sell transaction, the seller normally chooses the title company.

What is title insurance?

It is insurance against any undisclosed problems with the title such as title defects, liens or other matters of public record.  The owner's title policy protects you for as long as you own the property.  The lender's policy protects the lender against any title problems that may affect repayment of the loan.  

What is a title?

When purchasing a home, you are really purchasing the title to the property - which is the right to occupy and use the property that is recorded in your deed. 

Why do you need title insurance?

Title insurance protects against loss of value from defects that may exist in the title, or arguments made by others that such defects exist.  These defects include fraud, forged signatures on deeds, unknown heirs or previous owners, liens and documentation errors.  If you were uninsured and your right to the title is challenged, you could lose significant money defending yourself and even risk losing your property.

How does title insurance protect you?

An owner's policy for title insurance protects a buyer against defects in the title of the property by clearing up title problems and/or paying for your losses.  This is a one-time premium usually paid at the closing and remains in effect as long as you, or your heirs, retain an interest in the property.

How does title insurance protect the lender?

A lender's policy of title insurance protects the lender that finances the real estate against loss caused by defects in the owner's title.

Why do I need title insurance on a refinance?

Title insurance on a refinanced mortgage is usually offered at a reduced rate, and it assures your lender that you actually own the property. It insures that no one else has a preemptive position in front of the lender, and if someone does, it pays the lender's losses.

Why do I need title insurance on a brand new house?

Even though a home itself hasn't had previous owners, the land that it stands on has and your policy insures you as the owner of a specific piece of property. 

What is a closing?

Also known as "settlement" or "escrow," it is the event where the title to a property is transferred from seller to buyer.  Closings can be held in our office, or at a more convenient location of the client's request and involves the completion of all the necessary paperwork to finalize the agreement between buyer and a seller, as well as the collection of all funds required for the transaction.  Our closing agent will work with you to eliminate the confusion that sometimes surrounds such complicated real estate transactions by guiding you through each aspect of the closing and going over every document in a fashion that allows you to have any questions you might have answered to your satisfaction.

What are closing costs?

Closing costs are all costs required to close the real estate transaction.  They can include surveying fees, property taxes, title insurance premiums, attorney fees, real estate agent commissions, points, loan origination fees and private mortgage insurance.  In addition to closing costs, the purchaser may be required to pay the balance of their down payment in certified funds on the date of closing. 

What will happen on the day of my closing?

As A Buyer

•  You might do a final walk-through of the home.

•  You will go to the closing location where you must show your picture ID to the closing agent.

•  You will provide any additional out-of-pocket closing costs in certified funds.

•  You will present proof of your paid homeowner's insurance policy.

•  The closing agent will review the closing statement or HUD-1 statement with you, showing all items for which you have paid.

•  You will receive inspection reports and warranties if applicable.

•  You will sign the mortgage; agreeing that if you don't make payments to the lender as agreed, the lender is entitled to sell your property and apply the sale price against the amount you owe.

•  You will sign a mortgage note, which is your promise to repay the loan.

•  You will typically be given the title to the house in the form of a deed, signed by the sellers.

•  You will be asked to sign a number of other documents required by your lender.

•  The deed and mortgage will be recorded in the county recorder's office.

•  You will receive the keys to your new house!

As A Seller

•  You might be expected to have your home ready for the buyer to complete a final walk-through

•  You will go to the closing location where you must show your picture ID to the closing agent.

•  You will be responsible for the cost of the owners policy.

•  You will be responsible for paying commission to the realtor, if applicable.

•  You will be required to provide a forwarding address for any necessary documents.

•  You will be responsible for the cost of recording the deed.

•  You will sign the deed.

•  You will sign the HUD and any additional required documents.

•  You will be required to turn over the keys to the property being closed on.

What is an escrow?

Escrow describes the process of a third party holding money or property in trust for another until certain conditions are met.  For example, any amount given to your real estate agent in the form of an offer on a house goes into an escrow account until after you close.  Likewise, a closing agent holds your down payment and your lender's loan proceeds in escrow until closing.  You may also keep money in an escrow with your mortgage company allowing the mortgage company to pay your homeowners insurance and real estate taxes for you.