Notes

WHAT'S Title Insurance?
Title Insurance isn't like other forms of insurance.

? It does not insure against some casualty which might occur in the future, such as for example auto, homeowner's or health insurance.

? Title insurance protects the holder of the policy against things which might have occurred during the past; liens which were never paid off, mortgages that have been never satisfied, deeds which were not signed by all parties with a vested fascination with the property. Technically speaking, title insurance is a policy of insurance that guarantees to the holder of the policy that there are no claims contrary to the ownership of the insured property by the effective date of the policy other than those exceptions listed within the policy. A genuine estate title is the to own, use and still have that property - it is the foundation of property ownership.

? An insurance plan of title insurance provides protection to the insured should any claims be made against that right of ownership. When ownership of a house is being transferred, it really is customary for owner to provide to the customer an insurance plan of title insurance, guaranteeing to the customer that the ownership is being transferred free from known defects and encumbrances. To more fully understand title insurance, think about buying a property without it.

? How would you be sure that the mortgage would be paid off?

? How would you understand that there weren't other mortgages, or that the taxes from previous years had been paid?


? How would you understand that there have been no judgements contrary to the Seller that had attached to the house or that the pool was not situated in an easement? These can be investigated, and that's just what a Title Search and Examination is: it is just a search of the general public records to uncover information about the property.

? It's the first thing a title company does along the way of issuing a title policy. After the search and examination are complete, we issue dedication for Title Insurance.

?The commitment describes everything that was uncovered in the title search, and is really a binder, promising to issue a title insurance policy once the requirements stated in the commitment are met.

? The requirements includes such things as recording an adequately executed deed from the current owners, payoff and recording the satisfaction of the current mortgage, etc... The specific Policy of Title Insurance is issued after the recording of required documents.

? It guarantees to the brand new owner that of the conditions stated in the Commitment have already been met.

? Nonetheless it does more. In addition, it gives the owner a guarantee there are no other 'hidden' encumbrances against the title. Unless it is known being an exception to the policy, the holder of the policy is insured that there are no recorded liens or encumbrances on the house.

WHAT HAPPENS AFTER CLOSING?

After the closing, the Title Company still has work to accomplish.

? First, the Lender's signed documents must all be placed to be able and returned to the lending company within 24 hours. Hop over to this website of the existing Mortgage(s) must be sent out or delivered as fast as possible. And the deed and mortgage must be recorded.

? That is normally done within 24 hours of closing.

? Sometimes the real estate taxes should be paid also, so a representative of our company will deliver the payment to the Tax Collector. Whenever a document is recorded, which means that the Clerk of the Circuit Court copies the initial document and that copy is entered in to the permanent records.

? Each page of each document is recorded into a book and is given a page number.

? That book and page number is stamped over the margin of the initial document. Following the documents are recorded, they are normally returned to the Title Company.

? After the recorded documents are returned, the title work is updated once more, to make certain nothing was recorded during the "gap" period and to verify the recording numbers on the documents.

? Also, the satisfaction of mortgage, that was paid off, should arrive on the final title update. Once that is done, the final Policy of Title Insurance can be issued.

? It is prepared and mailed out to the brand new property owners and their lender.

? They should be prepared to receive the final policy between 6 and 10 weeks after closing.

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