8 Steps in the Title Process
Initial Request 01.
An order for title insurance is opened with a title officer who produces the initial response promptly within 24 to 48 hours. A preliminary report can be issued with the minimum of information; without even identifying the buyer or the terms of the sale. It shows the record title as it presently exists and is only an offer to provide insurance. To order a preliminary report please contact our office.
Searching & Examining 02.
Your title officer performs three searches: property, name, and tax searches. From that information, a preliminary report is created. Our on-site customer service center expedites the process of obtaining hard copies of recorded documents. Imaging helps to expedite searches with the ability to obtain documents online.
Technical Review 03.
The skill and expertise of our title officer is the key to providing you with a useful, accurate title report. Once the report is issued the review begins by making a technical analysis of the documents of record. An interpretive view of all recorded matters is made to evaluate their impact on the title to the property. Among the questions the examiner asks are: Would any of the recorded matters prevent the buyer from using the property for its intended purpose? Can antiquated leases be eliminated from the policy per a review of the current leases?
Inspection Analysis 04.
In anticipation of ALTA coverage, a site inspection is ordered. From the inspection report, the initial title product is supplemented to show any encroachments or other off-record matters which would ultimately impact the title.
Re-insurance 05.
The title insurer will insure up to the total sale price or loan amount, and then employs another title insurance company to insure them. The premium paid to the re-insurance title company is deducted from the title fees; it is not an additional change to the parties. Re-insurance is handled by the Title Department when requested by the proposed insured or is required based upon self-imposed or statutory title insurance limits.
Co-insurance 06.
The proposed insured may only allow the title insurance company to insure up to a certain amount (i.e. not the total sale price or loan amount). The insuring company must employ another title insurance company to insure the remainder of the sale price or loan amount. When there is co-insurance, the customer is charged based upon each company’s filed rates for the portion of the total liability covered by that company. The co-insurance company may be chosen by the customer.
Guidance 07.
When we identify impediments to closing a transaction, we also offer assistance and solutions. By understanding the sometimes delicate balance of the interests of the parties to a transaction, and by professionally and courteously handling issues as they arise, we can capably guide a transaction to a successful conclusion.
Documents 08.
Documents include Preliminary Report, Commitment, Pro Forma and Policy. A Commitment shows the condition of title in the way we are willing to issue it. A Pro Forma is a specimen of what the requested policy, as requested, will look like. Underwriting issues are completed. Not binding upon the company. Policy includes Final contract of indemnity between named insureds and the company.
21 Reasons For Title Insurance
01. Loss of Land A fire destroys only the house and improvements. The ground is left. A defective title may take away not only the house but also the land on which it stands. Title insurance protects you (as specified in the policy) against such loss.
02. Forgery A deed or mortgage in the chain of title may be a forgery.
03. Qualified Signee A deed or a mortgage may have been signed by a person under age.
04. Insane in the Brain A deed or a mortgage may have been made by an insane person or one otherwise incompetent.
05. Voided Title A deed or a mortgage may have been made under a power of attorney after its termination and would, therefore, be void.
06. Same Name A deed or a mortgage may have been made by a person other than the owner, but the same name as the owner.
07. Claim of the Unborn The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
08. Fraud A deed or mortgage may have been procured by fraud or duress.
09. Estate Tax Lien Title transferred by an heir may be subject to a federal estate tax lien.
10. Heirs An heir or other person presumed dead may appear and recover the property or an interest therein.
11. Judgment or Levy A judgment or levy upon which the title is dependent may be void or voidable on account of some defect in the proceeding.
12. Attorney Fees Title insurance covers attorneys’ fees and court costs.
13. Expedited Negotiations Title insurance helps speed negotiations when you are ready to sell or obtain a loan.
14. Transferring By insuring the title, you can eliminate delays and technicalities when passing your title on to someone else.
15. Reimbursements Title insurance reimburses you for the amount of your covered losses.
16. Bankruptcy A deed or mortgage may be voidable because it was signed while the grantor was in bankruptcy.
17. Paid in Full Each title insurance policy we write is paid up, in full, by the first premium for as long as you or your heirs own the property.
18. Document Recoding There may be a defect in the recording of a document upon which your title is dependent.
19. Divorce Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against claims by a non-existent or divorced “wives” or “husbands”.
20. Protection Many lawyers, in giving an opinion on a title, protect their clients as well as themselves, by procuring title insurance.
21. Claims Over the last 24 years, claims have risen dramatically.