Below is a list of commonly asked questions.....
A title is the evidence, of right, that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use.
Title insurance is not required, but it is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.
The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.
Before Settlement: The Title Company will order a search on the property to obtain the real estate records including any mortgages, liens, judgments, and unpaid taxes. These items will need cleared before prior to title being conveyed. A Commitment of Title Insurance will then be prepared for the buyer and/or lender. A Commitment of Title Insurance is a document containing any items or problems that need to be satisfied so that the buyer receives 'clean' title.
At Settlement: Each party will sign and exchange all the necessary documents needed to convey title as well as any mortgage documents or collateral issues. The Title Company will collect funds from the buyer and/or lender for the purchase along with the settlement costs from each party to pay any mortgages, unpaid taxes, commissions, recording costs, transaction fees, and to pay the seller the proceeds of the sale. These costs are prepared on a closing statement of HUD 1.
There are several items that you will need to bring to settlement:
-Buyer's copy of purchase agreement
-Cashier's check(s) to make all payments
-Proof of purchase of insurance for fire, casualty, etc.
-Invoices for any unpaid taxes, utilities or assessments
-Seller's copy of purchase agreement
-Invoices for any unpaid taxes, utilities, assessments, and latest utilities meter readings
-Receipts for last payment of interest on mortgages
-Bill of Sale of personal property covered by the purchase agreement
-Any unrecorded instruments that affect the title
-Proof of satisfaction of any mechanics' liens, chattel mortgages, judgments, or mortgages that were paid prior to the closing
After Settlement: The Title Company will record all the legal documents at the county courthouse and provide copies to each party. The new property owners will receive the deed and the lender will receive the mortgage documents. Once the mortgage loan is paid, the lender will remove their lien on the property at the county courthouse and the property owners will receive the original mortgage documents.
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