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.

 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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