WHAT IS TITLE?

The title to land gives you the right to enter upon the land and to possess, occupy use, control, enjoy and dispose of the land.

WHAT IS A TITLE SEARCH?

A title search is an examination of the public records to determine that the person who is selling the property has the right to sell it, and that the buyer is getting all the rights to the property that he or she is paying for.

WHAT KIND OF PROBLEMS CAN A TITLE SEARCH REVEAL?

A title search can show a number of defects, as well as encumbrances and restrictions. Examples are unsatisfied mortgages, unpaid taxes, mechanics liens, judgments against the seller and restrictions limiting the use of the land.

ARE THERE ANY TITLE DEFECTS THAT A TITLE SEARCH DOES NOT REVEAL?

Yes. Some examples are false impersonation of the true owner of the land, forgery, undisclosed heirs, deeds by persons of unsound mind or clerical errors in the records.

THE PROPERTY I WANT TO PURCHASE HAD A TITLE SEARCH DONE IN THE PAST YEAR. DO I NEED TO REQUEST ANOTHER ONE?

Yes, changes could occur within a years time that could warrant a change upon the title. Request another. 

WHAT IS TITLE INSURANCE & WHAT DOES IT PROTECT? 

Title insurance will protect the holder against losses that occur through defects in the title to real estate. Title insurance will eliminate any risk or losses caused through an error in the title from events or occurrences that happened prior to the holder’s ownership of the property. Examples of what title insurance protects agains include unfiled liens, inadequate legal descriptions, mistakes in legal documents, fraudulent deeds, mortgages, etc.

ARE THERE DIFFERENT TYPES OF TITLE INSURANCE POLICIES?

Yes. The two basic types are an owner’s policy and a loan policy. The owner’s policy protects the buyer’s investment up to the face amount of the policy. The loan policy protects the lender’s interest in the real estate for the outstanding balance of the buyer’s mortgage.

HOW LONG DOES COVERAGE UNDER A TITLE INSURANCE POLICY LAST? 

Coverage is for as long as you or your heirs have an interest in the real estate. 

HOW MUCH DOES TITLE INSURANCE COST?

Charges vary depending on the amount of coverage requested. Title insurance premium is only paid once, unlike other insurance premiums, which are paid annually.

WHAT IS AN ESCROW?

An escrow is when a disinterested third party holds legal documents and funds on behalf of a buyer and seller and distributes them according to their instructions. People buying and selling real estate open an escrow for their protection and convenience. 

WHAT IS CLOSING? 

Closing or settlement is the process of completing a real estate transaction. All of the accounting between parties occurs, documents are signed and monies are disbursed. 

WHAT SHOULD I BRING TO CLOSING?

Photo ID and certified funds in the form of a cashier’s check.

WHAT IS A 1031 TAX DEFERRED EXCHANGE?

A tax-deferred exchange allows an owner of real estate to exchange that property for new property without incurring income tax on the gain. Both the property relinquished and the property received must be held for productive use in a trade or business or for investment and must be “like-kind” properties. The transaction must be a reciprocal transfer of properties, as distinguished from a sale and reinvestment.