Frequently Asked Questions

Title is a collective term that includes your legal right to own, possess, use, control, and dispose of land. Title takes into account all previous ownership, uses, and transfers. Title to a property is transferred by a deed.

Title insurance provides coverage for things that may have happened in the past — as compared to automobile insurance or homeowner's insurance, which provide coverage for things that may happen in the future. Examples of possible title problems include undisclosed or missing heirs and improper deeds.

There are two types of title insurance policies:

• Lender's Title Policy (loan policy): Financially covers the amount of the loan and provides protection to the lender. A lender's title policy usually does not represent the full property value.
• Owner's Title Policy: Protects the landowner and can financially cover the full property value. If a claim is made against the title, the title insurer must pay any and all costs associated with the defense — and, if unsuccessful, reimburse the landowner for any reduction in the value of the land.

A title search is a detailed examination of the historical public records concerning a property. These records include deeds, court records, property and name indexes, and many other public documents. The purpose of the search is to verify the seller's right to transfer ownership and to discover any defects or encumbrances on the title.

• Forgery — forged deeds, release of deed of trust, or power of attorney
• Mental incompetence — someone signing a deed was not of sound mind when the document was executed
• Mistakes in recording legal documents
• Undisclosed or missing heirs
• Misinterpretation of wills
• Errors in indexing
• Defective acknowledgments
• Improper corporate deeds
• Incorrect legal description
• Execution of a deed by a minor

Yes. Homeowner's insurance typically provides protection against theft, accidental damage, or natural disasters such as tornadoes, earthquakes, or hurricanes. While those losses can be substantial, losses from a defective title could be devastating. If a fire destroys your home, you can rebuild. If the title to the land fails, you could lose the right to inhabit your home — and the land it sits on.

A title insurance policy provides coverage from the time of its effective date back to the origin of title. After the property has passed to your heirs, if it is found that a title defect arose prior to the effective date of the policy, the title insurance company would defend the title for your heirs just as it would for you if you were alive.

Your lender will provide you with a Good Faith Estimate of your settlement costs. You can also call us to see if the lender has sent the closing instructions with the final figures. We will not be able to determine the exact amount you'll need to bring to settlement until we receive the lender's instructions for completing the HUD-1 Settlement Statement. Closing costs must be paid by wire transfer, cashier's check, or money order.