Questions and Answers
Q: What is title?
A: A title is a combination of all elements that constitute the highest legal right to own, possess, use, control, enjoy, and dispose of real estate or inheritable right or interest herein.
Q: What is title search and why does one needs to be performed?
A: A title search is a detailed examination of all available public records on a property to verify the seller's right to transfer ownership. Also, a professional search will reveal any potential challenges you may face in the title such as unpaid taxes, unsatisfied mortgages, judgments and liens attached to the property, or restrictions limiting the use of the land.
Q: What is title insurance?
A: A title insurance policy is a contract of title insurance under which the insurer, in keeping with terms of the policy, agrees to indemnify the insured against the insured interest. In other words, title insurance is your protection against problems arising from defects in the title, which were not found during the title search.
Q: The title search of the property revealed no defects, do I still need to purchase a title insurance?
A: One thing to remember, even the most diligent search may fail to reveal some hidden hazards in the title. To protect yourself against these hidden hazards you should have a title insurance. Hidden hazards may jeopardize your right of ownership in your property.
Q: How long does title insurance coverage last?
A: A lender's policy lasts until the mortgage is paid in full. An owner's policy remains in force as long as you or your heirs have an interest in the property. If challenges to title arise after the property has passed to your heirs, the title insurance company would defend the title for them just as it would for you.
Q: If a claim arises what do I risk?
A: Of course, how much you will lose, depends entirely on the claim. In some extreme cases you may lose your entire home and still have to pay for the mortgage. In many other cases, even if the claims are small, you still may lose a lot of time, money, and effort to defend yourself.
Q: I am purchasing a brand new home, why do I need title insurance?
A: The builder of your home may have purchased a title insurance policy which protects them, not you. Also, after the builder transfers title to you, many defects may arise - unpaid contractors, liens, judgments, unpaid taxes. You need title insurance that protects your interests.
Q: I already purchased title insurance when I bought my home, why do I need to buy a new one?
A: You do not need to buy a new owner's policy, the one you purchased at the initial closing is good. However, you will need to purchase a new lender's policy to protect the new lender against defects in the title. Reason being is that a lot of things may have happened since the last lender's policy was issued, and it was issued to your original lender, not the one you are refinancing with now.
Q: How much title insurance cost?
A: A lot less than you think. Charges may vary, but generally the cost of the title insurance together with all additional services, such as search and exam, amount to one percent or less of the cost of your property.
Q: What else does United Title Group, LLC do besides providing title insurance?
A: We are a full service title company, which means we will perform everything from title search and exam, escrow, settlement services, recordings, and other pre and post closing matters. We will handle everything from start to finish, will work closely with your lender and real estate agent, and will organize the entire transaction for you.