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 indexes, 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 compared 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 to 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.