Title
WHAT IS TITLE INSURANCE?
Title Insurance is
a policy issued by a title company that represents the
state of title to a particular parcel of realty and insures
the accuracy of title against claims of title defects.
Some of the things that can be uncovered by a title search
are any unpaid taxes or mortgages, jusgements against
previous owners, easements, and other court actions or
recorded documents which can affect title to real estate.
HOW DOES A TITLE INSURANCE
POLICY PROTECT AGAINST THESE DAMAGES?
If a claim is made against
the title to your property as covered by your policy, your
title insurance protects you by: Defending your title,
in court if necessary, at our expense; or Bearing the cost
of settling the claim, if valid, in order to perfect the
title and keep you in possession of the property; or Paying
you for a covered loss.
Title insurance guarantees
the owner/purchaser of land that any unexpected claim covered
by the policy that arises out of the past to threaten ownership
of real estate will either be disposed of, or will be reimbursed
for any expenses, as provided in the title insurance policy.
Likewise, the original premium is your only cost as long
as you own the property! There are no annual payments to
keep your Owners Title Insurance Policy in force.
WHAT IS ESCROW/CLOSING?
An escrow is created when
money and/or documents are deposited, by two or more persons,
with a third party, which are to be delivered upon the
happening of a contingency or performance of a certain
condition. The third party is known as the escrow agent
or escrow holder.
The authority given to an
escrow holder is strictly limited by instructions provided
by the parties invovled. Accordingly, and escrow holder
acts on mutual instructions deposited into escrow and DOES
NOT represent any party. The escrow officer is authorized
by instructions to allocate funds for items during the
escrow period, such as real estate commissions, title insurance,
liens, recording fees and other closing costs. Instructions
also specify the method of collecting funds, proration
issues, time limitations, and the term of the transaction.
The escrow process all parties invovled by retaining money
and documents until the mutual instructions are met by
the parties to the transaction.
