Buying
and selling a home can bring up
many questions. Below are answers
to the most common ones we receive
regarding title insurance. If you
don’t see your question here,
please feel free to call our office
and we’ll be happy to answer
it for you.
1. What is
a title?
2. What is title insurance
and why do I need it?
3. Why is transferring
a title in real estate different
from transferring the title to
other items, such as a car?
4. What is a title
search?
5. What kind
of problems can a title search
reveal?
6. Are there any problems
that a title search cannot reveal?
1. What
is a title?
A title is the foundation of property
ownership. It is the owner's right
to possess and use the property.
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2. What
is title insurance and why do I
need it?
In most counties, it is the responsibility
of the Seller/Borrower to provide
at closing, a Title Insurance policy
on the contracted property. Title
Insurance affords protection from
past events which may or may not
be a part of the public records,
but that can adversely affect a
new owner’s interest in the
property. Title Insurance protects
against matters of public record,
plus hidden title defects, such
as fraud, forgery, incompetence
or missing heirs, that even the
most thorough title search may
not uncover.
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3. Why
is transferring a title in real
estate different from transferring
the title to other items, such
as a car?
Because land is permanent and can
have many owners over the years,
various rights in land may have
been acquired by others (such as
mineral, air, or utility rights)
by the time you come into possession
of it, even if the land has never
before been built upon. So, in
order to transfer a clear title
to a piece of land, it is first
necessary to determine whether
any rights are outstanding.
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4. What
is a title search?
A title search is a detailed examination
of the historical records concerning
a property. These records include
deeds, court records, property
and name indexes, and many other
documents. The purpose of the search
is to verify the seller's right
to transfer ownership, and to discover
any claims, defects and other rights
or burdens on the property.
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5. What
kind 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 seller and restrictions
limiting the use of the land.
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6. Are
there any problems that a title
search cannot reveal?
Yes. there are some "hidden
hazards" that even the most
diligent title search may never
reveal. For instance, the previous
owner could have incorrectly stated
his marital status, resulting in
a possible claim by his legal spouse.
Other "hidden hazards' include
fraud and forgery, defective deeds,
mental incompetence, confusion
due to similar or identical names
and clerical errors in the records.
These defects can arise after you've
purchased your home and can jeopardize
your right to ownership.
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