Frequently Asked Questions
What is title insurance?
A title insurance policy is a contract of indemnity that imposes a duty on the insurance company to indemnify the insured against losses caused by defects in title. The alleged defect must involve a flaw in ownership rights of the property to trigger coverage
What is the difference between a title commitment and a title insurance policy
After we complete our research, the title company provides all parties involved in the transaction a title commitment. At this point, the title company is providing everyone with the information that the company is willing to insure. It includes pertinent information about the legal land description, people in title and the amounts that we are willing to insure, this is on Schedule A. On Schedule B, the title company will put any document that was found in the courthouse that was filed related to this property. This will include, but is not limited to, items like covenants and restrictions, leases, easements and right of ways. Schedule C will be the items that the parties will have to attend to in order for the closing to proceed and the title to be able to insure.
The title policy is the document that is produced after the closing has occurred. This is your actual policy if you ever have a claim.
Do I have to have a new survey to buy/sell a home?
Schedule B will reflect any documents found in the courthouse that the title company has found that affect the property being insured for the transaction. These items are for the buyer's information and in many cases cannot be removed. If there is something on Schedule B that the buyer is concerned about, they will need to have an attorney review.
What is on Schedule B of my commitment?
Schedule B will reflect any documents found in the courthouse that the title company has found that affect the property being insured for the transaction. These items are for the buyer's information and in many cases cannot be removed. If there is something on Schedule B that the buyer is concerned about, they will need to have an attorney review.
Why can't I change how I receive my proceeds from a closing?
Cyber Fraud is an issue in our industry and in order to protect all parties from fraud, the safest measure is to make sure that no last-minute changes to the transfer of funds are authorized. For this same reason, we have disclaimers on our emails that we will never change our wire instructions in a transaction. Please call your title company immediately if you get any change to wiring instructions.
Who orders the Survey?
Per the sales contract, the party paying for the survey is responsible for ordering the survey. Regardless of whether or not the transaction closes, the survey company and any other vendor that has completed work will require payment for their services. If the transaction cancels, we can not release earnest money until all vendors that we have received invoices for up to that point have been paid. Buyers and sellers need to pay close attention to who is paying for any services that will be executed during the process.
Why does my Deed have that I paid “$10.00” in it?
“for and in consideration of the sum of Ten and No/100 ($10.00) Dollars cash and other good and valuable consideration”
Consideration is a legal term used to describe the value that changes hands as part of an agreement between two or more parties. Most deeds contain the citation “for and in consideration of the sum of Ten and No/100 ($10.00) Dollars cash and other good and valuable consideration”. This keeps the actual consideration, the sales price, private.
Do I have to pay for it every year?
Since title insurance covers what has happened on the property in the past and does not cover any future liens or legal agreements that affect the property, it is a one time cost.