For Homebuyers: A Guide to Title Insurance

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  What is It Why it Matters How you benefit

 
Title Title is your ownership right to your property No homebuyer wants to inherit existing debts or legal issues that could interfere with their future property rights. Clear title allows you to use or modify your property
Title Professional Title insurance professionals examine or research public records to see if there are any problems or defects that could cause you legal issues. They may also manage the closing process. The title professional ensures the title search is completed, writes the title insurance policy, and works to reduce your risk of ownership issues in the future. Your title professional has your back. They sweat the small stuff so you don’t have to, giving you peace of mind.
Title Search A title search is an early step in the home-buying process to uncover issues that could limit your rights to the property. If a title issue is discovered, your title professional will most often take care of it without you even knowing. After fixing the title problem, you can purchase the owner’s title insurance. The title search allows the title professional to issue you a comprehensive title insurance policy.
Title Insurance There are two different types of title insurance: the owner’s policy and the lender’s policy. You, the homebuyer, purchase the owner’s policy. While it is your choice, purchasing an owner’s title insurance policy is the best way to protect your property rights. You or the seller usually pay for the lender’s policy. It is almost always required by the lender and only protects the lender’s interest. Sometimes, undiscoverable defects can come up after the title search. Title issues may include forgery, fraud, or clerical errors. Owner’s title insurance is the best way to protect yourself from losing your property. Every year, most homebuyers in America elect to protect the most significant investment of their lives and purchase owner’s title insurance. Owner’s title insurance protects your interests after you purchase your home.
Closing Closing is the final step in executing the home-buying transition. It is the process that allows the transfer of ownership to occur. Upon completing the closing process, you get the keys to your home!

 

 

Your settlement agent will assist you throughout your real estate transaction to close it successfully. For more information, visit our website at: www.cltic.com

Compare the Advantages of ALTA Homeowner’s Policy

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Understanding Title Insurance Coverage:

There are generally two types of title policies issued to insure homeownership. The American Land Title Association (ALTA) Homeowner’s Policy offers the most comprehensive coverage, while the ALTA Standard Owner’s Policy provides essential coverage. However, not all policy types are available in every state. It’s important to discuss these options with your local title provider to understand which policy fits your needs.

Key Coverage Highlights:

Coverage Area ALTA Standard Owner’s Policy ALTA Homeowner’s Policy
Someone else owns an interest in your title ✓ ✓
Someone claims rights affecting your title due to forgery or impersonation ✓ ✓
Your title is defective (due to invalid documents, signatures, or power of attorney) ✓ ✓
Encumbrances, liens, and easements on your property (recorded or unrecorded) ✓ ✓
Title lost due to a violation of a covenant or restriction * ✓
Supplemental real estate taxes assessed due to construction or ownership changes ** ✓
Access to and from the land based on a legal right ** ✓
You are forced to remove or remedy existing structures for zoning violations *** ✓
Coverage continues after transferring title to a Living Trust or a wholly-owned LLC ✓ ✓

Additional Benefits of the ALTA Homeowner’s Policy:

  • Broad coverage for violations of building, zoning, and land use laws.
  • Protection against unrecorded easements.
  • Coverage for certain post-policy date occurrences.
  • Enhanced protection for homeowners, including future enforcement actions and unmarketable title.

Important Considerations:

  • The ALTA Homeowner’s Policy is designed for residential properties and offers enhanced protections compared to the standard policy.
  • Some coverage areas may be subject to exceptions, limitations, or state-specific requirements.
  • It’s crucial to review your policy’s terms and coverage with a qualified title insurance provider to ensure you are fully protected.

States where the policies are available: This coverage comparison applies to the following states: AL, AK, AR, CT, D.C., DE, GA, ID, IN, KS, KY, LA, ME, MD, MS, MO, NH, NE, OH, PA, SC, UT, VT, VA, and WY.

For a detailed breakdown of your title insurance options, reach out to your local title company or request a copy of the full policy language to better understand the extent of your coverage.

Why You Need Owner’s Title Insurance 

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What is title insurance?  

Owner’s title insurance protects your right to your home. By searching, clearing, and insuring the title to your home before you buy it, your owner’s title policy offers protection for your property rights for as long as you and your heirs own your home. If ownership of your property ever comes into question, an owner’s title insurance policy protects you from expensive legal problems that could result in the loss of your home.  

How title insurance works:  

As property changes hands, mistakes and irregularities – often made long before you expressed interest in the property – can place your ownership in dispute. The seller may have: 

  • Avoided disclosure of using the property as collateral for an unpaid loan. 
  • Fraudulently claimed to be the sole owner. 
  • Failed to pay real estate taxes. 

Even a simple mistake in the recording of legal documents, improper execution of legal instruments, or the reappearance of undisclosed or missing heirs can result in the loss of your home.  

Title insurance:  

The ultimate property protection If ownership of your property is ever challenged, title insurance will defend your possession of the property–and assume the legal costs of that defense–for as long as you and your heirs own the property. Moreover, if any challenge to your property’s title proves legitimate, title insurance will pay for your losses, just as your title insurance policy provides. 

20 Important Reasons Why You Need Owner’s Title Insurance  

  1. Forgery 
  2. Fraud in the execution of documents 
  3. Undue influence on a grantor of a deed 
  4. False impersonation by someone purporting to be the owner of the property 
  5. Errors in surveys 
  6. Undisclosed or missing heirs 
  7. Wills not properly probated 
  8. Misinterpretation of wills and trusts
  9. Mental incompetence of a grantor of a deed 
  10. Transfer of title by a minor 
  11. Heirs born after the execution of a will 
  12. Incorrect legal descriptions 
  13. Non-delivery of deeds 
  14. Unsatisfied claims not shown on the record 
  15. Deeds executed under expired or false powers of attorney 
  16. Confusion due to similar or identical names 
  17. Dower or courtesy rights of spouses of former owners 
  18. Incorrect indexing of the land records 
  19. Clerical errors in recording legal documents 
  20. Delivery of deeds after the death of the Grantor

Your settlement agent will assist you throughout your real estate transaction to close it successfully. For more information, contact us https://www.cstitleohio.com/locations/

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What to Expect at Settlement (Escrow/Closing) 

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 You’ve found the home you want, and your offer was accepted! Now, all that must be done is finalizing the funding and paperwork. Here are a few basics to help you understand the steps before the keys to the front door are placed in your hand. 

What Is Settlement?

Also known as “closing,” settlement is part of the process by which property ownership is transferred from one party to another. Completing all the steps necessary for the final contracts to be signed takes about a month, but in some cases, closing can take 30 to 90 days. 

What Are Closing Costs?

Closing costs cover the services required for a property to change hands. Services needed to process the property transaction include title work, appraisals, inspections, document preparation, recording fees, and other expenses.

How Much Are Closing Costs?

Although they vary by state, typically, closing costs total 1% to 2% of the home’s purchase price. Closing costs generally cover the following:  

  • Mortgage Costs: Loan origination fee, document preparation, points, commitment fee, underwriting fee.  
  • Outside Vendor Costs: Appraisal, credit report, flood determination fee.  
  • Title Costs: “Closing” Settlement fee, title/abstract search, title insurance premium (for the lenders and owner’s policies).  
  • Government Fees: Title recording and transfer tax fees. 

At closing, you’ll also face the cost for “pre-paid items,” which cost another 1% to 2% of the purchase price. The pre-paid items usually cover upfront payment of typical “year one” costs of home ownership, such as homeowner’s insurance premiums and real estate taxes.  

Do I Need Owner’s Title Insurance?  

Buying a home is one of the most significant decisions and financial investments you’ll ever make. To the extent of the matters outlined in the policy, an owner’s title insurance policy provides certain protections concerning title mistakes and irregularities before the policy issuance.  

Dollar for dollar, it’s one of the most cost-efficient forms of insurance for homeowners. The relatively low, one-time title insurance premium covers you against pre-policy title defects that could otherwise cost tens of thousands of dollars and even the loss of your home for as long as you own your home.  

What is Escrow? 

An escrow is an arrangement in which a neutral third party, called a settlement agent, holds legal documents and funds on behalf of a buyer and seller. The settlement agent distributes funds and documents according to the buyer’s and seller’s instructions. By acting as a neutral third party on behalf of the buyer and seller, the settlement agent can save time and facilitate the real estate closing. 

What Do I Need to Bring to Settlement/Closing?  

Buyers and sellers must bring approved photo identification, such as a valid driver’s license. Confirm with your settlement agent how any money you owe should be submitted.

Falling in love with the right home, making an accepted offer, and preparing to become the new owner. All that stands between you and the front door keys is the closing. Take the final steps to realize your dream by discovering what you need to know about your real estate settlement. A settlement agent will act as a neutral third party and carry out the mutually agreed instructions of the parties.

Your settlement agent will assist you throughout your real estate transaction to close it successfully. For more information, contact us https://www.cstitleohio.com/locations/ 

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Know before you close: Owner’s Title Insurance is Essential for Protecting Your Rights

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The place where you live is one of your most valuable possessions.

Title insurance protects your rights to your home.

Take every precaution to protect your home.

The title insurance business protects ownership of your home, which is often the largest financial transaction you’ll make in your life. For a relatively low, one-time premium, you’re protected against legal problems over property rights that could cost tens of thousands of dollars – even the loss of your home. Dollar for dollar, an owner’s title insurance policy is one of the most cost-effective forms of insurance available to homeowners. Your one-time premium protects you for as long as you or your heirs own your property.

What Is Title Insurance?

Owner’s title insurance protects your right to your home. By searching, clearing, and insuring the title to your home before you buy it, your owner’s title policy offers protection for your property rights for as long as you and your heirs own your home. If ownership of your property ever comes into question, an owner’s title insurance policy protects you from expensive legal problems that could result in the loss of your home.

How Title Insurance Works

As property changes hands, mistakes and irregularities – often made long before you expressed interest in the property – can place your ownership in dispute.

The seller may have …

. .. avoided disclosure of using the property as collateral for an unpaid loan.

… fraudulently claimed to be the sole owner.

… failed to pay real estate taxes.

Even a simple mistake in the recording of legal documents, improper execution of legal instruments or the reappearance of undisclosed or missing heirs can result in the loss of your home.

We diligently search public records for documents associated with the property and provide you with an expert, interpretive view of the impact of all recorded matters on the property’s title.

Title insurance protects your rights to your home.

Suppose our title search reveals recorded defects, liens, or encumbrances upon the title, such as unpaid taxes, unsatisfied mortgages, easements, restrictions, or other impediments. In that case, these are reported to you before you purchase the property, and we offer solutions to resolving these impediments.

Title Insurance: The Ultimate Property Protection

If ownership of your property is ever challenged, we will defend your possession of the property – and assume the legal costs of that defense – for as long as you and your heirs own the property. What’s even better is, if any challenge to your property’s title proves to be legitimate, we will pay for your losses, just as your title insurance policy provides.

Your entire real estate investment depends upon receiving a clear title to your property. Take advantage of our expertise, strength, and superior service for peace of mind and the ultimate protection of your property.

Owner’s Title Insurance is Essential, for Protecting Your Rights:

  1. Title Insurance protects the interests of property owners and lenders against legitimate or false title claims by previous owners or lien holders. In effect, it insures the investment, unlocking its potential as a financial asset for the owner. Title problems are discovered in more than one-third of residential real estate transactions. These “defects” must be resolved before closing. The most common issues are existing liens, unpaid mortgages, and recording errors of names, addresses, or legal descriptions.
  2. An Owner’s Title Insurance Policy protects the owner for as long as he or she has an interest in the property, and the premium is paid only once, at closing.
  3. Title Insurance is different from other forms of insurance because it insures against events that occurred before the policy is issued, as opposed to insuring against events in the future, as health, property, or life insurance does. Title Insurance is loss prevention insurance.
  4. We rely on a search of existing records to identify possible defects to resolve them before issuing a policy. We perform intensive and expensive work up-front to minimize claims. Researching titles can be highly labor-intensive since only about 15 percent of public records are computerized. The industry invests substantial time and expense to collect and evaluate title records. As a result, the industry’s claims are low compared to other lines of insurance.
  5. Dollar-for-dollar. Title Insurance may be the best investment a property owner can make to protect their interest. The cost of title insurance and who pays for the Owner’s Title Insurance Policy depends on State Laws, local customs, and/or the agreements made in the Real Estate Contract.

Your settlement agent will assist you throughout your real estate transaction to close it successfully. For more information, visit our website at: www.cltic.com

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The FAQs of Title Insurance for Homebuyers

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A home is the single largest investment most of us will make in our lives. To buy with confidence, get owner’s title insurance. It’s the smart way to protect your property from legal and financial claims.

Common Title Insurance Questions

To help you understand how it works, here are answers to common questions:

1. What Is Title?

A title is your ownership right to your property.

2. What is a Title Search?

A title search is a standard part of the home buying process that is conducted to uncover issues that could prevent your right to the property. Your closing agent reviews public records to see if there are problems or defects that could cause you legal issues.

3. What is Title Insurance?

If you’re buying a home, title insurance is a policy that protects your investment and property rights. There are two different types of title insurance: owner’s policy and lender’s policy.

  • Type 1: An owner’s policy protects your property rights for as long as you own the home.
  • Type 2: A lender’s policy is usually required by the lender and protects only the lender’s financial interests. The buyer typically pays for this policy, but this varies depending on geography. We recommend you ask an ALTA member how it’s handled in your area.

4. Why Should I Purchase Owner’s Title Insurance?

Purchasing owner’s title insurance is a smart decision because it’s the best way to protect your property from future legal claims.

5. What Does Owner’s Title Insurance Cost?

The one-time payment for owner’s title insurance is low relative to the value of your home. The typical owner’s title insurance policy costs around 0.5% of the home’s purchase price.

6. How Long Am I Covered?

Your owner’s insurance policy lasts as long as you own your property. Your life will change over time, but your peace of mind never will.

7. What Happens at Settlement?

You sign the legal documents and receive the keys to your home.

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Your settlement agent will assist you throughout your real estate transaction to bring it to a successful closing. For more information visit our website at: www.cltic.com.

7 Reasons Why Every Homebuyer Needs Owner’s Title Insurance

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Buying a home is an exciting and emotional time for many people. To help you buy your home with more confidence, make sure you get owner’s title insurance. Here’s why it’s so important for you:

Why Title Insurance is Important

1. Protects Your Largest Investment? A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you—your life, car, health, pets, etc., so why not your largest investment? For a one-time fee, owner’s title insurance protects your property rights for as long as you own your home.

2.  Reduces Your Risk If you’re buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen legal and financial title discrepancies. Don’t think it will happen to you? Think again.

Unexpected title claims include:

•        Outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes

•        Pending legal action against the property that could affect you

•        An unknown heir of a previous owner who is claiming ownership of the property

3. You Can’t Beat the Value Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of the home’s purchase price.

4. Covers You As long as you own your home, owner’s title insurance protects your property rights.

5. Nothing Compares Homeowners insurance and warranties protect only the structure and belongings of your home. Getting owner’s title insurance ensures your family’s property rights stay protected.

6. 8 in 10 Homebuyers Agree Each year, more than 80% of America’s home buyers choose to get owner’s title insurance.

7. Peace of Mind If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting most existing debts or legal problems, once you’ve closed on your new home.

Your settlement agent will assist you throughout your real estate transaction to bring it to a successful closing.

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