Buyers Guide - Elizabeth Melichar

WHAT I S T I T L E I N S U R ANC E & FAQ ’ S

What is Ti t le Search?

Before i ssuing a pol icy of t i t le insurance, the t i t le company must review the numerous publ ic records concerning the property being sold or f inanced. The purpose of thi s t i t le search i s to ident i fy and clear al l problems before the new owner takes t i t le or the lender loans money. Our research helps us to determine i f there are any r ights or claims that may have an impact upon the t i t le such as unpaid taxes , unsat i sf ied mor tgages , judgments , tax l iens against the current or past owners , easements , restr ict ions and cour t act ions . These recorded defects , l iens , and encumbrances are reported in a “prel iminary report ” to appl icable par t ies . Once reported, these mat ters can be accepted, resolved or ext ingui shed pr ior to the clos ing of the transact ion. In addi t ion, you are protected against any recorded defects , l iens or encumbrances upon the t i t le that are unreported to you and which are wi thin the coverage of the part icular pol icy i ssued in the transact ion.

What is Ti t le Insurance?

The purchase of a home i s of ten the s ingle largest investment people wi l l make in a l i fet ime; the impor tance of ful ly protect ing such an investment cannot be over stressed. Ti t le insurance i s protect ion which assures that the r ights and interests to the proper ty are as expected, that the transfer of ownership i s smoothly completed and that the new owner receives protect ion f rom future claims against the property. I t i s the most ef fect ive, most accepted and least expens ive way to protect property ownership r ights . Because land endures over generat ions , many people may develop r ights and claims to a par t icular property. The cur rent owner ’s r ights—which of ten involve fami ly and hei rs—may be obscure. There may be other part ies (such as government agencies , publ ic ut i l i t ies , lenders or pr ivate contractors) who al so have “r ights” to the property. These interests l imi t the “ t i t le” of any buyer. I f t i t le insurance companies work to el iminate r i sks and prevent losses caused by defects in the t i t le before the clos ing, why do you need a t i t le insurance pol icy? The t i t le to the property could be ser ious ly threatened or lost completely by hazards which are cons idered hidden r i sks—“ those matters , r ights or claims that are not shown by the publ ic records and, therefore, are not di scoverable by a search and examinat ion of the those publ ic records .” Mat ters such as forgery, incompetency or incapaci ty of the par t ies , f raudulent impersonat ion, and unknown errors in the records are examples of “hidden r i sks” which could provide a bas i s for a claim af ter the proper ty has been purchased. Ti t le insurance i sn’ t just for a homeowner. Subdividers need i t when planning a new tract of homes or a commercial str ip center. Attorneys use i t for cl ients who are invest ing in shopping centers , hotel s , of f ice bui ldings and count less other projects . Bui lders need i t in order to obtain construct ion loans f rom thei r lenders . Everyone wants to have peace of mind when invest ing thei r hard-earned money. The t i t le insurance company wi l l help protect these important investments , no matter how large or smal l , wi th i ts own reputat ion and f inancial st rength. Why Do You Need a Ti t le Insurance Pol icy?

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Co p y r i g h t 2 0 1 7 S e c u r i t y T i t l e : Co n t e n t c a n n o t b e e d i t e d o r r e p r o d u c e d w i t h o u t w r i tt e n p e r m i s s i o n f r om S e c u r i t y T i t l e . A l l c o n t e n t h e r e i n i s i n f o r ma ti o n a l o n l y a n d n o t i n t e n d e d t o offe r l e g a l o r fi n a n c i a l a d v i c e .