1.  What is a title search or title exam? 

A title search or title exam is the processing of examining all relevant public records to determine the ownership of the property as well as any liens or other claims to the property. Back to Top

2.  What is a closing and why do I need one?

A closing is a meeting among principals in a real estate transaction, handled by a disinterested third party, during which legal papers related to the sale and purchase are signed and financial arrangements are made final and binding.

A closing is necessary for coordinating the payoff of any current lien holders on property, obtaining title and property insurance and filing the necessary documents and taxes with applicable county governments.
Back to Top

3.  What is title insurance and why is it important?

A title insurance policy is your best protection against potential title defects, which can remain hidden despite the most thorough search of public records and in the most careful escrow or closing.  Back to Top

4.  What is the difference between a Loan Policy and an Owner’s Title Insurance Policy?

When you buy real estate your lender typically requires you to buy a LOAN policy as part of your closing costs.  This type of policy protects the lender ONLY in case of a title defect.  In order to protect yourself, you need to purchase an OWNER’S policy. Back to Top

5.  What are some examples of title defects?

There are many types of title defects, including, but are not limited to:

• Forged documents such as Deeds, Mortgages and Releases;
• Deed executed under falsified power of attorney;
• Erroneous releases of mortgage liens or assessments which are later found;
• Misinterpretation of Wills or other documents. Back to Top

6.  How much does an Owner’s Policy cost and when do I buy it?

The cost of the policy depends on the purchase price of the property.  This one-time premium however, is significantly cheaper than defending your title. 

An Owner’s Policy can be purchased when you buy the property.  When an Owner’s Policy is purchased along with a Loan Policy at closing, a discount is offered that could save you hundreds of dollars.  Title Insurance Cost
Back to Top

7.  What is a Homeowner’s Title Insurance Policy? 

A Homeowner’s Policy provides additional coverages that are not provided by the standard Owner’s Policy.    This coverage includes, but is not limited to, mechanic’s liens, forgeries and access to the property.  Title Insurance Cost Back to Top

8.  You pick your realtor and your lender, so why not pick your title company?

Many people don’t know that they have a choice when it comes to which title company does the closing for their loan.  Most lenders have title companies that they have used in the past and therefore end up going with someone that they have already used.  This may or may not be in your best interest.  There are good title companies and bad title companies. Some title companies are run by Attorneys with special knowledge and expertise in real estate law.   Title companies vary in the fees that they charge. The title company closing your loan may or may not be local or experienced in closing loans in your area. So, how do you tell the difference?   Call the title companies and check them out.  Compare fees and experience.  Ask questions about the services they offer. Back to Top

9.  What is a Qualified Intermediary?

A “Qualified Intermediary” is the person or entity that assists the Taxpayer with accomplishing an exchange intended to qualify as a Like Kind Exchange under Section 1031 of the Internal Revenue Code by holding the Exchange Proceeds for the Taxpayer pursuant to the terms and conditions of an “Exchange Agreement”. Back to Top