Have Questions about Title Insurance?
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Title Insurance - Frequently Asked Questions
Below are some of the most frequently asked questions about title insurance and the title insurance services offered by Quality Title & Abstract Agency. Simply click on a question to view the answer. If you have any additional questions, please Contact Us and let us know how we can help you.
There are several ways to place an order with Quality Title & Abstract Agency. Place your order using the method that is the most convenient for you. However you choose to place an order with us, you will have access to our online order tracking system to track your order. You can submit your order through our Web Trax online order entry system or you can submit your order online using our Online Order Submission Form. If you prefer, you may also fax or e-mail your order form, a 1003 or our Order Form (PDF). More detailed instructions for each of these methods can be found on our Order Information page.
Our custom order tracking system Web Trax, will allow you to track your file from order placement to the issuance of the final title policy. You will be able to view our internal notes as well as all posted documents including the binder, preliminary HUD, final HUD, payoff statements, executed closing package, and final title policy. You can even add your own documents to our online file. Fax or e-mail any information you want saved within the order and we will electronically attach it in the file for your future reference. You can also attach any documents to the file yourself using the Web Trax system.
A "title" is the evidence, or 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 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.
Not every loan requires title insurance. Property information including current vesting, open mortgages, and tax payments may be sufficient to qualify and close the loan in the case of a second mortgage. Quality Title & Abstract Agency offers a full menu of property reports. The scope of information, and the cost, will be determined by your particular needs. You make the choices and we will provide a customized report.
A title search can show a number of title defects and liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense - and pay court costs and related fees. Also, if the claim proves valid, you can be reimbursed for your actual loss up to the face amount of the policy.
You notify the title insurance company and they defend the title, even if it goes to court. The title company bears all expenses.
Your lender likely will require that you purchase a Lender's Policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it.
An Owner's Policy, on the other hand, is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy covers the full cost of any legal defense of your title.
Call Quality Title & Abstract Agency, Inc. as soon as you and the seller sign the sales contract or when you decide to refinance the mortgage on your home. With a brief summary of the details, our team of title experts will begin a search of the public records and issue a title commitment. Because there are a number of steps we must take to make certain that we know all we can about the title, it is wise to get the process started as soon as possible.
Yes. We act as a central clearinghouse for the parties involved-collecting necessary documents, insuring adherence to the lender's title instructions, making arrangements for proper payment and distribution of funds. We are fully prepared to work with you from the beginning of your transaction all the way through to the disbursement of funds and proper recording of documents.
No time to read a binder? Quality Title & Abstract Agency has the solution. All binders include a “Curative Sheet” which provides our clients a checklist, written in laymen’s terms, which outlines stipulations that need to be satisfied to get your loan to the closing table. We work as a team with our clients and borrowers to clear all conditions and close the loan.
Yes. There are some "hidden hazards" that even the most diligent title search may never reveal. For instance, the previous owner could have incorrectly stated his or her marital status, resulting in a possible claim by a legal spouse. Other "hidden hazards" include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names and clerical errors in the records. These defects can arise after you've purchased your home and can jeopardize your right to ownership.
The one-time premium is directly related to the value of your home in a purchase transaction or your new mortgage amount in a refinance transaction. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase or refinance your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property.
An owner can, in a very short time, do many things to encumber the title. For example, he could grant easements or construct improvements that encroach on adjacent property. It is necessary to conduct an up-to-date title search to uncover any such problems.
That depends on the claim. In an extreme case, you could lose your entire home and property and still be liable to pay off the balance of your mortgage. Most claims aren't that dramatic, but even the smallest claim can cost you time, money and aggravation, and you may have to pay costs for a legal defense if you do not have a title insurance policy.
A title policy insuring the builder does not protect you. Also, a great many things could have happened to the land since the builder's policy was issued. Liens, judgments and unpaid taxes for which prior owners were responsible may be disclosed after you purchase the property causing you aggravation and costing you money.
If a borrower has owned a property less than 24 months the lender wants to see who transferred the property to your borrower and how long they were in title. This research allows them to analyze risk when assessing the file for possible fraud.
For an owner's policy it is as long as you retain an interest in the property. For a mortgage or loan policy it is for the life of the loan.
Having trouble understanding marital rights and who needs to be in attendance at the closing table regardless of who is on the deed? Do you know that the requirements change based on state law? View the chart of “Marital Rights” for each state where Quality Title & Abstract Agency conducts business.
There are many differences between a Chapter 7 and a Chapter 13 bankruptcy. From a title insurance perspective, how is a refinance loan transaction affected?
When there is an open Chapter 13 bankruptcy, an approval must be sought from the bankruptcy court in order to close and insure a refinance loan transaction. This order must come directly from the bankruptcy court as a result of a petition filed by the attorney who originally filed the Chapter 13.
If there is an open Chapter 7 bankruptcy, a real estate transaction of any kind is prevented by the property’s automatic vesting in the Trustee upon filing. No loans can be closed or insured and the property ownership cannot be transferred until the bankruptcy is completed and discharged.
Most people are under the impression that buying out of foreclosure can be easy. Obtain a record owner search, see what’s against the distressed homeowner being foreclosed, show up at the sheriff’s sale, make a bid and you bought yourself a property. Not so easy. The bank will only be concerned with what is against the distressed owner so that they can properly notify all parties, but as a consumer bidding at foreclosure you need to beware of possible issues against prior owners as well. You could inherit prior owner liens, mortgages, or judgments, and become responsible for paying them. Always get a full title search which will detail all items that may impact your ownership of the property.
A judgment is the final determination of the rights of the creditor entered by a court of competent jurisdiction against the debtor. The effect of a judgment is that a lien immediately attaches against the debtors’ real property upon the entry of the judgment and automatically binds all the real estate owned by the debtor as security for the judgment debt.
Individual state statute determines if a property is attached by the particular judgment. If the lien secured by a judgment becomes a secured lien against real property it must be satisfied by payment and the ultimate issuance of a Warrant to Satisfy. The professionals at Quality Title & Abstract Agency determine the validity of the judgment and work with the homeowner and creditor to collect and verify the necessary information to affect the payoff or discharge.
Thinking about offering Reverse Mortgages and need some information to get you going? Review helpful documents describing Reverse Mortgages. Quality Title & Abstract Agency has the knowledge and experience to deal with the particularly sensitive nature of Reverse Mortgage files.
You may be able to refinance with a CEMA (Consolidation, Extension & Modification Agreement). There are additional fees and not all banks will work with a CEMA loan. However, the financial benefit can far outweigh the cost. Costs and application procedures vary from lender to lender and there may be some pre-closing out of pocket costs to the borrower. Loans should be locked for extended periods as the application process may take longer than the traditional refinance. Quality Title & Abstract Agency works with a network of experienced New York real estate attorneys who can process the CEMA is a quick and efficient manner and get your loan to the closing table.
View our Company Profile. We also have an extensive list of Jordan Real Estate Group frequently asked quesions.