Although title to your property may appear to be free and clear following the title search, there may be hidden defects that can surface in the future. For instance, there may be a forged deed in the chain of title or a secret marriage, an undisclosed heir or an invalid divorce. In any of these situations there may be one or more persons who have a claim against your title. These are the kinds of things your title company would be required to defend on your behalf.

The title insurance premium is a one-time premium paid at settlement when you purchase the property. Typically, there is a policy issued to the owner and one to the lender, if any. If you are borrowing money from a bank or mortgage company, the lender will require you to purchase title insurance to cover the loan amount. The owner is protected for the entire time he is in title to the property. Should a claim arise during that time period, the title insurance company would be responsible for settling same, if it is not specifically excluded from the insurance, including payment of legal fees.

As you can see, title insurance is something you cannot afford to be without. Although the title search may show title is free and clear, others may have a legitimate claim against your home in the future. Protect your investment with title insurance.

There is a one-time premium for the title insurance policy, which is based on the purchase price of the property. This premium actually covers the cost of two policies, one for the owner and one for the lender, if any. The policy is good for as long as you, or your heirs, own the property. It provides for coverage of legal expenses to defend a claim, as well as reimbursement in the event of a loss. The premium is included in the closing costs that you pay at the settlement. Please feel free to call us for a quote on the exact cost.

In preparation for issuing the title insurance policy, the title company will do a title search in the courthouse, which goes back at least 60 years. All owners in the chain of title are checked for judgments and mortgages, which will need to be cleared so the buyer is assured of good title. All easements and restrictions are noted so the buyer is aware of what the property is subject to.

In addition, the title company makes sure that all real estate taxes and water and sewer bills are paid in full. Any open items will be paid at closing.

All documents necessary for transfer of title and financing are prepared and/or reviewed by the title company. A Closing Disclosure, ALTA Settlement Statement or HUD-I Settlement Statement is prepared for settlement.

All parties meet to sign necessary documents to transfer title and complete financing. The title company representative explains each document. The title company handles the collection and disbursement of all funds, including, but not limited to, payment of all open taxes, final water/sewer bills, commissions, payoff of liens and disbursement of proceeds to Seller.

The Deed and Mortgage, if any, are recorded in the courthouse. Title is checked from the date of the original search to date of recording for any additional items. All liens are paid off and removed of record. Finally, a title insurance policy is prepared and sent to the Owner and Lender, if any, along with the original recorded documents.

At Associated Abstract, we try to make your home purchase as pleasant and easy as possible. Once the title work is ordered through us, we begin the necessary steps to clear the title and get the parties to the settlement table by the anticipated closing date. We will handle all aspects from beginning to end for both the buyer and the seller. Any title problems are cleared up by us or our underwriter, prior to closing.

Closings are scheduled for the convenience of the buyers and sellers and are held either in our office or an alternate location requested by the parties involved. All settlement statements, documents and checks are prepared prior to closing to minimize the amount of time at the closing table.

We are here to serve all of your title insurance and closing needs. Please feel free to call us with any questions or problems that may arise throughout the transaction. Our goal is to make your transaction as smooth and problem-free as possible.