The Benefits of an Owner's TItle Insurance Policy
Owner’s title insurance protects your right to your home. By searching, clearing and insuring the title to your home before you buy it, your owner’s title policy offers protection for your property rights for as long as you and your heirs own your home. If ownership of your property ever comes into question, an owner’s title insurance policy protects you from expensive legal problems that could result in the loss of your home.
For the lender, a title policy is a guarantee that it has a valid and enforceable lien (mortgage or deed of trust) secured by the property, that no one else other than those listed on the policy has a prior claim (or loan, etc.) and that the party to whom they are making the loan does own the property being used as a security for the loan. The protection remains in effect as long as the mortgage remains unpaid.
Before issuing a policy of title insurance, the title company must review the numerous public records concerning the property being sold or financed. The purpose of this title search is to identify and clear all problems before the new owner takes title or the lender loans money.
Our research helps us to determine if there are any rights of claims that may have an impact upon the title such as unpaid taxes, unsatisfied mortgages, judgments, tax liens against the current or past owners, easements, restrictions, and court actions. These recorded defects, liens, and encumbrances are reported in a preliminary report to relevant parties. Once reported, these matters can be accepted, resolved or extinguished before to the closing of the transaction. Additionally, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction.
Your owner’s insurance policy lasts for as long as you or your heirs* own your property. Your life will change over time, but your peace of mind never will.
The American Land Title Association helps educate homebuyers like you about title insurance so you can protect your property rights. Check out www.homeclosing101.org to learn more about title insurance and the home closing process.
Generally, your real estate agent, mortgage broker or escrow agent will contact you to make an appointment for you to sign your final loan papers with a notary at an agreed upon time and location. At this time, the escrow agent, mortgage broker, or lender will also tell you the amount of money you will need (in addition to your loan funds) to purchase your new home. The lender will send your loan funds directly to the title company.
Obtain wire instructions via a secure exchange from your title and escrow company to transfer the cash to close. You may also ask the limit of an acceptable amount for a cashiers check. Personal checks and ACH transfers are not acceptable forms of payments as they may violate the title companies Good Funds Policy.
You will need to bring a valid state ID card, driver’s license or passport with you to the clsoing. These items are needed by a Notary Public to verify your identity. It’s routine but a necessary step for your protection.
Make sure you are aware of your lender’s requirements and that you have satisfied those requirements before you come to the closing to sign your papers. Your loan officer or real estate agent can assist you.
After all parties have signed the documents and the escrow agents have confirmed all monies have been received from the lender and the buyer, the closing is considered completed. The final copy closing packages are given to the buyers, sellers, and real estate agents, and the proceeds are disbursed to the sellers and keys are given to the buyers. Congratulations! You just purchased a new home!
The original deed to your home will be emailed or mailed directly to you at your new home by the County Recorder’s office. This service takes several weeks (sometimes longer, depending on the County Recorder’s work volume).
