1. What is a title?
2. What does a title company do?
3. Are there various ways to hold title to my property?
4. What kinds of problems can a title search reveal?
5. Are there any problems that a title search can not reveal?
6. Wouldn't an abstract show property limitations and restrictions?
7. What is title insurance?
8. How does title insurance protect my investment if a claim should
arise?
9. How much could I lose if a claim is filed against my property?
10. How much does title insurance cost?
11. How long does my coverage last?
12. Where can I get title insurance?
13. When will I know how much money I need for settlement?
14. What type of payment is required for closing?
1. What is a title?
A title is the foundation of property ownership. It is evidence of the owner's
right to possess and use the property.
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2. What does a title company do?
The job of the title company begins well before settlement.
We assemble information from many sources, including buyers,
seller's mortgage companies, land records and court records.
We coordinate with all parties involved in the settlement. We
look for any potential problems in the transactions and clear
any judgments and/or liens against the parties prior to the transaction.
At the settlement table we collect and disburse funds from the
transaction, transfer ownership of property and issue title insurance
after settlement. The title company is also responsible for recording
the Deed and Deed of Trust in land records. We also track and
record the release of the seller's mortgage. [top]
3. Are there various ways to hold title to
my property?
Yes, as a sole owner, joint tenants, tenants in common, or
as tenants by the entirety. Consult with us prior to closing
to discuss your specific situation. [top]
4. What kinds
of problems can a title search reveal?
A title search can show a number of title defects and liens,
as well as other encumbrances and restrictions. Among these are
unpaid taxes, unsatisfied mortgages, judgments against the current
or prior owner, and restrictions limiting the use of the land. [top]
5. Are there any problems that a title search
can not reveal?
Yes. There are some "hidden hazards" that the most
diligent title searches may never reveal. For instance, the previous
owners may not have revealed that they were divorced, resulting
in possible claims by judgment creditors. Other "hidden
hazards" include fraud and forgery, defective deeds, claims
against the property, mental incompetence, confusion due to similar
or identical names and clerical errors in the courthouse records.
These defects can arise after you have purchased your home and
can jeopardize your right of ownership to the property. [top]
6. Wouldn't an abstract show property limitations
and restrictions?
Maybe - and maybe not. An abstract is a history of the property
title as revealed by the public records. Abstracts may contain
errors and do not disclose "hidden hazards" that can
threaten your property title if you do not have a title insurance
policy. [top]
7. What
is title insurance?
There are two types of title insurance. One type of policy
covers the lender. The other policy type covers the owner.
The Lender's policy is a separate policy which protects
the lender's interest in the property, up to the outstanding
balance of the buyer's mortgage. The Lender requires that the
buyer purchase a Title Insurance Policy on behalf of the Lender.
The loan policy protects the lender against loss due to unknown
title defects. This policy protects only the lender's interest;
it does not protect the buyer.
The Owner's policy protects against loss due to any
of the problems mentioned above. Even a "hidden hazard" can
result in a claim against your ownership. The Enhanced Owner's
coverage includes coverage for zoning, subdivision, building
permit and encroachment issues, as well as the coverage for certain
post-policy matters such as theft of identity, forgery, and neighbor
encroachment. Owner's coverage provides for legal defense and
any liability or loss that may arise.
The Enhanced coverage also allows for increase in coverage
as the property values increase, up to 125% of the policy coverage. [top]
8. How does title insurance protect my investment
if a claim should arise?
If a claim is made against your property, title insurance
will, in accordance with the terms of your policy, assure you
of a legal defense - plus pay all court costs and related fees.
Also, if the claim proves valid, you will be reimbursed for your
actual loss up to the face amount of your policy. [top]
9. How much could I lose if a claim is filed
against my property?
That depends on the claim. In an extreme case, you could
lose your entire home and property and still be liable to pay
off the balance of your mortgage. Most claims are not that dramatic,
but even the smallest, or fraudulent claim can cost you time,
money and aggravation. You also have to pay costs for legal defense. [top]
10. How much does title
insurance cost?
Probably a lot less than you think. Charges vary in different
areas of the country, but generally the cost of title insurance
(including title abstract, examination and related services)
amount to about one percent, or less, of the cost of the property.
And unlike other insurance premiums, which must be paid annually,
a title insurance premium is paid one time only. Title insurance
rates are set and regulated by the Maryland Insurance Commission.
(If sellers have a current owner's title policy the buyers may
be eligible for a re-issue rate) [top]
11. How long does my coverage last?
For as long as you or your heirs retain an interest in the
property, and in some cases, even beyond. [top]
12. Where can I get title insurance?
From any licensed title insurance company or its representatives
operating in your state. When choosing a title insurer, it is
important that you look for a company with expertise and experience,
as well as the financial strength to protect you should a claim
arise. Your broker or attorney can recommend such a company. [top]
13. When will I know how much money I need
for settlement?
As soon as figures are available from
the lender, we will be in a position to prepare a final closing
statement ("HUD"-1). Typically, this will be a day
or two prior to closing. If the final settlement figures are not available in time for you to get certified funds from the bank, then go with the good faith estimate provided by your lender. LTC will accept personal checks for the difference of up to $2,000.00. If the good faith estimate is too high, we will gladly cut a check back to you for the difference. (see
Explaination of Hud form) [top]
14. What type of payment is required for
closing?
A cashier's check, bank check, certified check, or wire transfer of funds is
required at settlement. Lakeview Title will not accept personal checks for over $2,000.00. [top]
