A title search or abstract of the records in the Courthouse provides information regarding the ownership, liens and rights of other parties to a particular piece of land. The title search, in the form of an Information Certificate or Title Commitment, is prepared by a title examiner and is the result of his study of the documents found in the chain of title and his determination as to their effect on the title to that particular piece of land.
Real Estate Closing
Our experienced personnel conduct and coordinate the closing which is also known as the settlement during which deeds, mortgages and other documents are signed and delivered, a settlement sheet showing the distribution of funds between the parties is signed, the money is disbursed, the papers are recorded, and all other details such as payment of outstanding liens and the issuance of the title Insurance policies occurs.
There are two types of title insurance – owner’s title insurance (an Owner’s Policy), which protects the buyer, and lender’s title insurance (a Loan Policy), which protects the lender. In a typical residential transaction, the title policy often required by the mortgage lender will not safeguard the rights and interests of the homebuyer, therefore, a separate Owner’s Policy is necessary.
An Owner’s Policy is typically issued in the amount of the real estate purchase price, and remains in effect for as long as the owner, or his or her heirs, retains an interest in the property. In addition to identifying risk before a transaction is completed, the Owner’s Policy will pay valid claims and all defense costs against attacks on the title.
A Loan Policy assures the lender of the validity, priority and enforceability of its lien (mortgage) – serving as protection for the lender’s security interest in the property. A Loan Policy is issued in the amount of the loan, and liability decreases as the mortgage debt is reduced.