|
Each of the following sections provides frequently asked questions on the
title and escrow industry as well as related issues. If you have more
specific questions which are not covered here, please feel free to
contact us. Your question
will be directed to a professional in the relevant field and answered as
soon as possible.
Please note that the information contained herein is for general
informational purposes only. If you are currently involved in a real
estate transaction, please direct your questions to your real estate
professional, title officer or closing officer.
What should I know about title insurance?
Most home sellers and buyers have been informed that obtaining title
insurance will provide them necessary protection over possible title defects,
but many remain uncertain why this is so. The more you know about title
insurance, the more confident you'll be about coming to Realty Title for a
policy. To learn more
about title insurance, click here.
Back to Top
What is owner's title insurance?
Owner's title insurance provides you with protection against the loss of your
home caused by someone in the future finding a problem with the title.
Back to Top
Why does the buyer need title insurance?
Even the best title search, performed by the most experienced and capable
experts, cannot ensure that no title hazards exist. Some problems just
aren't revealed in public records. Years ago, there may have been an
honest mistake in determining the status of title. Or today, a previously
unknown heir may come forward to claim ownership or a deceased relative's
property. To help protect you in these events, Realty Title can issue
you an owner's title policy. This will insure you against most of these
unforeseen problems. We not only help to remove the flaws that show, we
also insure against those that may not show.
Back to Top
What if I don't have owner's title insurance?
If a problem with your title occurs and you don't have owner's title insurance,
you could lose everything you've invested in your home or face expensive legal costs.
Back to Top
What risks call for title insurance protection?
Real estate has such great value and is so basic a form of wealth that many
special laws have been enacted for its protection. As a result, the owner of
land has exceedingly strong rights and so do the family and heirs of the owner.
However, others may have "rights" in the property as well. There
are mortgage and leaseholder rights; liens due to unpaid taxes; lien claims to
those whom the owner owes money; mining, oil or air rights, and many others.
Anyone who has such a claim is, in a limited way, a part owner. He or she cannot
ordinarily be deprived of their interest except by having the claim settled or
released. As a new owner, you may know nothing about these risks, but you are
still vulnerable to such claims on your property. That's why you need an
insurance policy from Realty Title
Back to Top
My lender has a mortgage title insurance policy on my property. Isn't
that enough?
No, it is not enough. If there is a complete failure of title, you have no
protection and could lose both your property and equity in the property.
A mortgage title insurance policy protects only the lender's interest in
the property, not the current owner's. That is why Realty Title provides
owners' title insurance policies, to protect the owner's
interest in a piece of property should a claim arise. Purchasing an owner's
title insurance policy at the same time that the lender orders the mortgage
title insurance policy can result in a savings.
Back to Top
Is title insurance expensive?
The cost of title insurance on any piece of property is very small when
compared with the benefit and security it gives. And, there are no annual
payments to keep the policy in force. The original premium is your only cost as
long as you or your heirs own the property.
Back to Top
How can there be a title defect if the title has been searched and a loan
policy issued?
Title insurance is issued after a careful examination of copies of the public
records. But even the most thorough search cannot absolutely assure that no
title hazards are present, despite the knowledge and experience of professional
title examiners. In addition to matters shown by public records, other title
problems may exist that cannot be disclosed in a search.
Back to Top
Doesn't the seller's deed take care of giving me clear title?
Not at all. A "deed" is merely an instrument whereby a seller
transfers his or her right of ownership, whatever it may be, to you. It is not
proof that the person described as the seller is actually the owner. It does not
do away with claims or rights others may have in the property. From the deed,
you cannot determine for certain what rights, liens or claims may be outstanding against
your title.
Back to Top
What is a HUD-I Settlement Statement?
The HUD-I Settlement Statement is the document prepared by the title
company at closing which shows where all of the money in the transaction
is coming from and going to. It gives a 'financial picture' of the
closing transaction. At closing, the title company is responsible for
preparing the HUD-I Settlement Statement in accordance with the contract,
lender's instructions, market practice and state and federal laws.
For additional information from ALTA on the HUD-I Settlement Statement visit
http://www.alta.org/consumer/hud1.cfm
Back to Top
How can I save money on my title insurance policy?
If you purchased or mortgaged your property recently, you may be able to
save money on the purchase of your new title insurance policy by asking
for a special 'refinance' or 'reissue rate'. Simply provide a copy of
your prior title insurance policy to Realty Title prior to closing, or
ask your local Realty Title Closing Agent for more information.
Back to Top
What is Predatory Lending, and how can I protect myself from loan fraud?
According to HUD, people across America lose their homes and their investments
because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who:
- Sell properties for much more than they are worth using false appraisals.
- Encourage borrowers to lie about their income, expenses, or cash
available for down payments in order to get a loan.
- Knowingly lend more money than a borrower can afford to repay.
- Charge high interest rates to borrowers based on their race or
national origin and not on their credit history.
- Charge fees for unnecessary or nonexistent products and services.
- Pressure borrowers to accept higher-risk loans such as balloon loans,
interest only payments, and steep pre-payment penalties.
- Target vulnerable borrowers to cash-out refinances offers when they
know borrowers are in need of cash due to medical, unemployment or debt problems.
- "Strip" a homeowner's equity from by convincing them to
refinance again and again when there is no benefit to the borrower.
- Use high pressure sales tactics to sell home improvements and then
finance them at high interest rates.
For more information download HUD's Brochure -
Don't Be a Victim of Loan Fraud. (PDF File - 51 KB) or visit
HUD's web site for further explanation of predatory lending and 11 tips on
being a smart consumer.
Back to Top
| 
