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INSURANCE WHAT IS TITLE INSURANCE?
A title insurance policy protects a real estate owner or lender against
any loss or damage they might experience because of leins, encumbrances or defects in the
title to said property, or of the incorrectness of the related search.
HOW DOES TITLE INSURANCE DIFFER FROM CASUALTY INSURANCE?
Casualty Insurers (Car, life, health, etc.) assume risk for future events,
collecting monthly or annual premiums. A title policy insures the past of the real
property and the people who owned and own it, for a one-time premium paid at closing.
WHO NEEDS IT?
Purchasers and lenders need title insurance to know that the property they
are involved with is insured against various possible title defects. Whether it's a sale,
refinance, construction loan ... the seller, buyer, and lender all benefit.
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WHAT DOES TITLE INSURANCE COVER?
Title insurance protects against claims from various defects such as
another person claiming an ownership interest, improperly recorded documents, fraud,
forgery, liens, encroachments, easements, and other items that are specified in the actual
policy. HOW IS A TITLE POLICY CREATED?
After the escrow officer or lender opens the title order, a titlebegins a
search of the public records including the County Recorder, Federal and State Agencies,
and County and City Offices. A Preliminary Report is issued to the customers for
review and approval. All closing documents are recorded upon escrow's
instruction. When recording has been confirmed, demands are paid, funds are disbursed, and
the actual title policy is typed and sent to the insured.
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