FREQUENTLY ASKED QUESTIONS
What is Title Insurance?
Title Insurance is an insurance policy that protects you, the insured, from claims on the property in regard to ownership. It can even protect you against problems that occurred before you became the owner of the property. Title insurance also defends you in the case of anyone filing a claim against your property. Defending your property against a false claim can be costly and time consuming.
What type of problems does title insurance protect me from?
Some of the most common problems covered by title insurance include fraud, forgery, judgments, unpaid taxes, liens and other defects that could affect ownership rights to your property.
Are there different types of title insurance policies?
Yes, there are two basic types of policies- the first is an Owner's Policy and the second is the Lender's Policy. The Owner's policy protects the interest of the real estate owner, while the Lender's Policy protects the interest of the lender or mortgage. If you purchase an Owner's Policy simultaneously with a Loan Policy there is a significant cost savings.
When does title insurance expire?
Never. Your Owner's Policy protects you and your heirs even after you no longer own the insured property. A Lender's Policy terminates when the insured mortgage is satisfied.
Is all Title Insurance the same from all companies?
You should always shop around because there are differences between title companies and their agencies. Community Title is an agent for Commonwealth Land Title Insurance Company. It is important to select a company that has a solid reputation and takes the time to discuss your needs. At Community Title, we offer our customers enhanced services over and above meeting their title insurance needs. We want to be a partner with our customers.
What is the cost of Title Insurance?
The title insurance premium is based on the sales price or loan amount (whichever is higher). Other information may determine eligibility for a discount.
What happens at Closing?
A new deed will be prepared transferring ownership of the property to the buyer. The lender will require the buyer's signature on a promissory note, as evidence that they are personally responsible for repaying the loan. Also, the buyer will sign a mortgage on the property as security to the lender for the loan. The process by which these documents are signed is referred to as the closing. The buyer must bring enough money to complete the sale and the seller will transfer the property to the buyer. All funds paid at the time of closing must be "good funds" (i.e. cashier's check, money order, or wired funds). Community Title can only offer insured closings on transactions where our company issues the title insurance.