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Buying a new home is one of the biggest events one might face. As
you approach the day of
closing, however, all the details can
be a little overwhelming. You
might easily overlook the single
most important step in the entire process -- the purchase of Title
Insurance.
What is a
Title?
Top
A title is the evidence of
rights that a
person has to the ownership and possession of land. It is possible
that someone other than the owner has a legal right to the property.
If that right can be established, this person can claim the property
outright or make demands on the owner as to its use.
Do I need Title
Insurance?
Top
Absolutely! Title insurance is a means
of protecting yourself from financial loss in the event that
problems develop regarding the rights to ownership of your property.
There may be hidden title defects that even the most careful title
search will not reveal. In addition to protection from financial
loss, title insurance pays the cost of defending against any covered
claim.
What can make a
Title defective?
Top
Any number of problems that remain
undisclosed after even the most thorough search of public records
can make a title defective. These hidden "defects" are
dangerous because you may not learn of them for many months
or years. Yet they could force you to spend substantial sums on a
legal defense, and still result in the loss of your property.
How much does
Title Insurance cost? Top
The one-time premium is directly related to
the value of your home. Typically, it is less expensive than your
annual auto insurance. It is a one-time only expense, paid when you
purchase your home. It still continues to provide complete coverage
for as long as you or your heirs own the property.
When should I
look into purchasing Title Insurance? Top
Call ARACOR
as soon as you
and the seller sign the earnest money contract. With a brief summary
of the details, our team of title experts will begin a search of the
public records and issue a title commitment. Because there are a
number of steps we must take to make certain that we know all we can
about the title, it is wise to get the ball rolling as soon as
possible.
Do I need my own
title insurance policy if my lender is getting one? Top
Yes. The lender's
policy of title insurance is for the lender's protection, not yours
as the owner. A loss under the loan policy is paid to the
lender, and when the loan is paid, the lender's policy terminates,
leaving no protection at all.
Can my title company handle the
closing? Top
Yes, in most areas of the country.
ARACOR
and its agents act as a central clearinghouse for the parties
involved -- collecting necessary documents, insuring adherence to
the lender's title instructions, making arrangements for proper
payment and distribution of funds. We are fully prepared to work
with you from the beginning of your transaction all the way through
to conclusion.
What items are needed at
closing? Top
You will want to have these items complete
or in hand when you come to the closing (please confirm with your
escrow officer, as practices vary by state):
Buyer
Seller
- Seller's copy of purchase agreement
- Invoices for any unpaid taxes,
utilities, assessments, and latest utilities meter readings
- Receipts for last payment of interest on
mortgages
- Bill of Sale of personal property
covered by the purchase agreement
- Any unrecorded instruments that affect
the title
- Proof of satisfaction of any mechanics'
liens, chattel mortgages, judgments, or mortgages that were paid
prior to the closing
- Photo identification (passport, driver's
license, or state-issued identification card)
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ARACOR
Search & Abstract Services, Inc.
