What is a title?
A title is the foundation of property ownership and establishes the owner’s right to possess and use the property.

What is a title search?
A title search is a detailed examination of the records concerning a property. These records include deeds, court records, property and name inde xes, as well as 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 that may put a burden on the property.

Why is transferring the title to real estate different than 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 (such as mineral, air or utility rights) may have been acquired by other owners by the time you come into possession of it, even though the land has never been built upon. So in order to transfer a clear title to a piece of land, it is imperative to determine whether any rights owned or acquired by others are outstanding.

What does title insurance cost?
The cost is directly related to the value of the property. The higher the value, the more coverage is necessary. But the premium is small cmpared to the total purchase price. The premium on an owner’s policy of title insurance is paid only once and remains in effect as long as the property is owned by the insured, and continues the protect the insured until sold.

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, provide you with a legal defense - and pay all court cost related fees. Also, if the claim proves valid, you may be reimbursed for your actual loss up to the face value of the policy.

Won’t my loan policy protect me?
The loan policy protects the lender against loss due to unknown title defects. It also protects the lender’s interest from certain matters which may exist but which may have not been known at the time of the sale. This policy protects only the lender’s interest - it does not protect you. That’s why you need an owner’s policy of title insurance, which can be issued at the same time as the lender’s policy for a nominal one-time fee.

What kind of problems can a title search show?
A title search can show a number of title defects, such as liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied money judgments against the seller and restrictions pertaining to the use of the land.