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 the protection from financial loss, title insurance pays the cost of defending against any covered claim.

 

It is a way to protect your from financial loss from any number of problems that remain undisclosed after even the most meticulous search of public records.  Defects can include, but are not limited to, mistakes in indexing the public records, undisclosed heirs claiming to own the property, fraud, forgery.  These defects may not surface for many months or years after you purchase the property.  Yet, they could force you to spend substantial sums on legal defenses and still result in the loss of your property.  An Owner's Title Insurance Policy full protects you should a problem that was not uncovered during the title search and pays for any legal fees defending a claim to your title.

 

The cost, which is directly related to the value of your property, is a one-time premium for an Owner's Title Insurance Policy.  It is paid when you purchase the property and provides coverage for as long as you own the property.

 

A Loan Title Insurance Policy is required by all lenders when they issue you a loan.  It protects the lender's interest in the event a problem with the title arises.  The policy amount decreases each year and eventually disappears after a loan is paid off.  If you refinance, you are obtaining a new loan and a new Loan Title Insurance Policy will be needed and all lenders require the borrower to pay for it.

 

• Prepare Agreement of Sale reflecting agreed upon terms
• Invoices for any unpaid taxes, utilities or assessments
• Paid receipts for last year's real estate taxes
• Copy of last month's mortgage statement
• Prepare new deed for transfer to Buyers
• Keys
• Photo Identification

What do Buyers need for closing?

• Signed Agreement of Sale
• Approval/loan commitment letter from Lender
• Proof of homeowner's insurance
• Cashier's check for funds required by settlement agent
• Photo identification