What is title insurance and why do I need it?
Title insurance is an insurance policy that protects against loss should the condition of the title to the land be other than as insured.  When you buy Real Estate, whether a home or property, you expect certain benefits from that ownership.  You expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to sell or use your property as security for your own loan.   Title insurance covers these and other rights for you.

What is the cost of title insurance?
The single premium is directly related to the value of your home.  Typically, it is less expensive than your annual auto insurance.  It is a one-time only expense, paid when you purchase your home.  Yet it continues to provide complete coverage for as long as you or your heirs own the property. 

Why do I need a separate title insurance policy when my lender has their own policy?
A Lender’s Policy insures that your lender has a valid 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, protects your interest in the property.  Title issues, 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 policy covers the cost of legal defense.

If I make a title claim will I loose my property?
No.  If there is an adverse claim to your title, you should contact your title insurer or the agent who issued your policy.  Title insurance includes coverage for legal expenses which may be necessary to investigate, litigate or settle that claim.

What is a title search and what does it show?
Insuring a home’s title begins with a search of public land records affecting the property and then the title insurance underwriter examines those documents to determine if the property is insurable.  Those documents will include deeds, wills, trusts, outstanding mortgages and judgments, property liens, highways or utility line easements, pending legal actions, and notary acknowledgements. 

Are there any issues that a title search does not show?
After all this searching and examination, a title problem may still be hidden or missed, such as;  a forged signature on a deed, an unknown heir who steps forward to claim ownership to a property, an expired or forged power of attorney used during a property transfer, or an incorrect public record.  In each of these cases and many more, when there is the appropriate title insurance coverage, a policy will offer financial protection.  The title insurer defends the title and either perfects the title or pays valid claims. 

What is a HUD 1 Settlement Statement?
The HUD – 1 is a form used by the settlement agent or title company to itemize charges imposed upon a borrower/buyer and/or a seller for a real estate transaction.  It gives each party a complete list of their incoming and outgoing funds on their transaction.  To view a sample of a HUD – 1, click on the following link: .

 What is Closing Protection Coverage (CPL)?
Closing Protection Coverage is an additional coverage that is offered to a borrower/buyer, seller, or lender that indemnifies you against the loss of settlement funds resulting from certain acts of the Licensed Agent or anyone acting on behalf of the Licensed Agent, subject to certain conditions and exclusions specified in the Closing Protection Coverage Form:  1.Theft, misappropriation, fraud, or any other failure to properly disburse settlement, closing, or escrow funds.  2. Failure to comply with any applicable written closing instructions, when agreed to by the Licensed Agent.