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Frequently Asked QuestionsTitle Insurance
What is Title Insurance?It is the application of the principles of insurance to risks that are present in all real estate transactions. Back to TopWhat are some of those?They are divided into two main categories - hidden hazards that cannot be detected in the examination of the title and human errors that are always with us. Back to TopWhat are some examples of hidden hazards?
Back to TopHow is Title Insurance different from other types of insurance?It protects against future losses arising out of events that have happened in the past. Back to TopHow do you figure the premium?There are no annual premiums. One premium, based on the amount of the sale or mortgage, is paid when the policy is issued for the life of the policy. Back to TopWhat do you mean by the life of the policy?A mortgagee policy stays in effect until the loan is paid off. An owner's policy is good forever. Even if you sell your property, it continues to protect you and your heirs on your warranties. Back to TopIf I have an attorney examine the title, can't he or she assure me that it is good?Every attorney knows that there are hazards in real estate titles that cannot possibly be discovered through even the most diligent search of the public records. For instance, the attorney cannot be sure that the marital rights of all previous owners have been properly relinquished; that all mortgages, judgments, etc., affecting the property have been properly indexed in recording room; that there is no unknown heir of a former owner who can appear to assert a claim. These are but a few of the matters that can crop up to defeat real estate titles. Among others are such things as fraud, duress, infancy, insanity, false personations, etc. Back to TopHow does Title Insurance help protect my home investment?It places the assets of a corporation behind the title to your home. If attacked, the title will be defended without cost to you and if the title, or any part of it, should be other than insured, you will be reimbursed, up to the face amount of your policy, for any financial loss incurred. Back to TopHow does it work?This is essentially three policies in one. Back to TopWhat do I get?There are two basic forms of title insurance: an Owner's Policy and a Lender's Policy. Owner's Policy protects the interests of the owner in the event of a claim and is issued with coverage up to the purchase price. Lender's Policy, on the other hand, is issued to protect the interests of the lending institution solely and covers up to the mortgage amount. Back to TopHow much will it cost me?For a modest, one-time premium you can protect your purchase for as long as ownership remains in your name or those of your heirs. The premium is based on the purchase price of your property. There are no additional annual premiums and no renewal charges. Back to TopCan I avoid all of this?Well, yes and no. If you purchase property with mortgage financing (or refinance), the lending institution will require you to purchase a Lender's Policy to protect their investment. As for the Owner's Policy, you are not required to purchase it. But, the concept of simultaneous issue makes the purchase of both policies together much cheaper. In fact, for most people, the purchase of a house is the largest investment they will ever make and therefore demands an Owner's Policy. Back to TopWhere does Priority Title fit into this whole picture?Basically, Priority Title does the homework for you. We examine the public records, maps and documents to determine insurability. Once we have collected, examined and analyzed these items, we clear up any potential problems and finally issue a policy that insures the condition of your title. Back to Top
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