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General Frequently Asked Questions About Title Company
What is meant by "Title"?"Title" equates to legal ownership of property. It legitimates your right to "peaceful enjoyment" of the property you own, within restrictions or limitations of use imposed by government authorities. A "Clear Title" means ownership is without blemish. A "Cloud on Title" indicates that some inconsistency exists which may blemish ownership if not corrected. A "Defect in Title" is indicative of an encumbrance or a more severe problem needing remedy. Finally, a "Failure of Title" demonstrates failure to convey ownership from one owner to the next.What is Title Company Do?USA Title Co., provides title insurance services to buyers, sellers, lenders and developers, essentially anyone who has an interest in real estate. Services vary throughout the country, depending on local practices and laws. In many states, title companies handle escrow as well as perform and insure title searches. A title search involves searching public records to ascertain if the seller has the legal right to sell the property. In other states, attorneys conduct title searches.How does Title Pass from one Owner to Another?Legal title passes from one owner to another in one of many ways through a WILL, Inheritance, Grant, Operation Of Law, Court Decree, Descent & Distribution etc. In most cases, however, it is conveyed through a written instrument called the DEED. The person conveying ownership is called a "Grantor" while the person to whom ownership is conveyed is called the "Grantee". The Deed must be delivered by the grantor and accepted by the grantee. A Deed does not have to be dated, notarized, recorded or have any consideration to be valid. However, it must be notarized before it can be recorded in court.What is meant by "Chain of Title"?Chain of title refers to the chain of ownership created by repeated buying and selling of the same property. Each time a property is sold and purchased, the new ownership is recorded in county courts for public records. Over time, a chain of ownership results from such repeated change of hands.What is Title Insurance?Title insurance is an insurance policy issued by an Insurance Underwriter, guaranteeing a buyer's ownership and peaceful enjoyment against claims, liens or judgments associated with a property after the purchase is completed. Such insurance protects against losses arising from events occurring prior to the date of the policy. Unlike RealProperty or Casualty Insurance where coverage starts on the day a policy is issued, title insurance being Indemnity Insurance causes coverage to stop on the day the policy is issued. Its coverage extends backward in time and guarantees that events prior to your ownership do not result in losses to you. How long does Title Insurance Protect the Property Owner?Title Insurance provides protection indefinitely, for as long as the current ownership lasts. When current owners sell, however, the same cycle starts all over again, and the new owner's policy ends on the date of issue, covering them from losses arising during previous ownership.What types of Title Insurance Policies are available?In general, there are two different types of Title Insurance policies available. The Owner's Title Insurance Policy which offers protection only to the owner against defects in their title to real estate. The Lender's Title Insurance Policy is meant to insure and protect only the lenders' loans against defects and losses until the mortgage is paid off. Consequently, a lender's policy does not provide coverage to the owner in the absence of the owner's policy. A new owner's policy need not be necessary when refinancing an existing property, however the lender will require the purchase of a new lender policy.What is the function of a Title Insurance Company?Legal statutes provide that buying and selling of real estate must involve an independent third party to facilitate the performance of escrow, closing and settlement, and the issue of title policies. A full service title company performs the search on the property, conducts the requisite due diligence to review the Chain Of Title, identify any inconsistencies, liens, judgments, etc., issue the Commitment To Insure, manage the funding through escrow accounting, coordinate all activities between the buyer, seller, realtors, mortgage brokers, lenders etc., conduct the closing, disburse funds, issue the Title Insurance Policy to both the buyer and lender, and finally get all required documents recorded to establish your ownership.What are the costs involved in Title Insurance?Title Insurance costs may be broken down to two basic types. Fixed Cost and Variable Cost.Fixed Costs (the largest component) typically represent the Title Insurance Premium (including any applicable Endorsements) paid one time based on the purchase/sale price of the property. Additionally, they also include factors such as Document Recording Fees, Stamp Fees, Intangible Taxes, and City Assessment etc. These costs are formulated and regulated by the government and remain constant across all title insurance companies. Variable Costs (the smaller component) typically represent service charges including Search & Examination Fees, Processing & Settlement Fees, Mail/Wiring/Document Storage Handling Fees, and Notary Charges etc. It is in this area where title agencies differentiate themselves. Additionally, they may also include factors such as applicable Survey Charges, Inspection and Appraisal Charges, Insurance Charges, Loan Cost etc. (all/most of these being usually performed independently and charged by outside service providers). On some occasions, one party will bear responsibility of total cost. Generally, most costs are spread between the buyer and seller, although negotiated agreements among them dictate eventually who pays for what. Please fill and submit our Online Request For Quotation Form for detailed costs associated with your specific situation, and our staff will respond to your request within 24 Hours. How do I select the right Title Insurance Company for my transaction?Cost differentiation is one of the many components consumers use in such determination. The cheapest service, however, is not always the best. In addition, there are many intangible attributes more difficult to measure. They include value additions on account of the length of time a title company has been in business, the expertise and experience of the facilitators, the professionalism and courtesy with which a service is provided, the accuracy of the work performed, the office environment, commitment to management by process control, and the word of mouth that ultimately define quality. These are realized through personal experience.At USA Title we believe that quality is defined by customer requirements. The satisfaction of those requirements is the customer's right and our job. Despite the heavy regulation within our industry, we have further submitted our standards to the test through the Better Business Bureau. We have been in business for over twelve years, have a stellar record with our accuracy, enjoy enormous repeat business, and provide a beautiful office environment and a staff second to none. The final word of course will be yours. Who decides on the selection of a Title Agent?We recognize that whether you are a buyer or seller, you have the right to choose your title company. Where most real estate buyers and sellers once let their agents select the title insurance company for them, today's customers are highly educated and experienced in measuring the power of their investment. Some would have you believe that generally the right to choose a title company rests with the party paying for such service, or the lender, mortgage broker or real estate agents. In reality however, that right was, is, and will always remain a negotiated one. Hence our belief at USA Title , that since the buyer always pays for every one, the property, the realtors, the lenders, the title insurance company, the insurance underwriter et al., Buyers have as much right to exercise their choice. |
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