Frequently Asked Questions

What is Title Insurance?
Title insurance is a unique form of insurance. It is different from other forms of insurance in that it protects you, the insured, from a loss that may occur due to matters or faults in the past. Other types of insurance such as auto insurance protect you from events that may occur in the future.

The title insurer carefully researches every known, recorded document regarding current and prior ownership of the property being purchased or transferred to determine the current status of the title.

This includes close scrutiny of all public ownership and court records, property tax records, recorded surveys, legal descriptions, and liens. The search may cover such relevant documents as deeds, deeds of trust, mortgages, wills, judgments, divorce decrees, liens and assessments relative to the property in question. This process of "risk elimination" is followed to determine the insurable interest and what visible title defects will have to be cleared before the title is transferred.

However, no matter how extensive and exacting the title search may be, the possibility of "hidden risks" remains. Records may not reflect claims of missing heirs, false impersonations, forgeries, competence of the Grantor, improperly probated wills and clerical errors in recording legal documents. Exposure to loss may be the result of confusion due to similar or identical names, deeds executed under expired or false powers of attorney, unsatisfied claims not shown on the records, mistaken interpretation of wills and trusts, unpaid taxes, certain easements, and pending legal actions.

In the case of a transfer of ownership, the seller generally provides a title insurance policy to the buyer affirming his right to sell the property and assuring that it is "free and clear" from unacceptable liens and encumbrances. As a home is the largest single purchase most families make, it is important to know that the investment is protected. "Hidden risks" make the purchase of title insurance a prudent one-time investment.

Because lenders understand the potential impact of the "hidden risk" factor of any real estate transaction, they typically request a title insurance policy to protect the amount of money they loan to purchase, refinance, or remodel the property. The borrower generally provides a title insurance policy to the lender that insures the lender against a loss (up to the face amount of the policy) in the event there is a valid claim against the title to the property that was not disclosed to the lender.

What is Escrow?
An escrow, sometimes referred to as a closing, is an arrangement in which an impartial third party called an escrow holder, holds legal documents and funds on behalf of a buyer and seller and/or lender. The funds are distributed and documents are recorded only in accordance with the written instructions received from the parties, thus consummating the transaction.

People buying and selling real estate often open an escrow for their protection and convenience. The buyer can instruct the escrow holder to disburse the purchase price only upon the satisfaction of certain prerequisites and conditions. The seller can instruct the escrow holder to retain possession of the deed for the buyer until the seller's requirements, including receipt of the purchase price, are met. Lenders regularly open an escrow to ensure that loan proceeds are not disbursed until the lender has a valid lien recorded against the borrowers property to secure their loan. All parties rely on the escrow holder to faithfully carry out their mutually consistent instructions relating to the transaction or to advise them if any of the instructions are contradictory or cannot be completed.

Once all the terms and conditions of the written instructions of all parties have been fulfilled, and all closing conditions satisfied, the escrow is closed and the transfer of property and money is accomplished.

Why should I use a REALTOR®?
Most people realize selling your own home can be costly, time-consuming, even risky. Unless you're just naturally lucky, you need the help of a professional...for a lot of reasons. Maybe you should consider the following questions:

• What is my home worth in today's market?
• How long should it take to sell?
• Where should I advertise? How much should I spend?
• How can I best prepare my home so that it will be most attractive to potential buyers?
• Will I be available to show my home when my prospective buyer wants to see it?
• How do I know if my prospects are financially qualified?
• What kind of financing can I arrange for the sale?
• What kind of terms will attract the right buyer?
• Do I understand all of the paperwork and details necessary to successfully close the sale?

Should I talk to a REALTOR® first and see how professional experience can help me?
When you use a REALTOR® you'll get the benefit of their experience from the moment you consider selling your home. Your agent will help you establish a fair market price from daily dealings in your neighborhood and arrange financing terms that make it easier to obtain a quick sale. Every brokerage office has a steady stream of prospects that no individual can match. National referral networks and Multiple Listing Services also help to reach buyers from out of town or out of state. Additionally, many prospective buyers relocating from outside your local area may be working with a REALTOR®. As an expert in real estate, your agent will give advance estimates of your closing costs and net proceeds from the sale, as well as keeping you informed of the details to assure a smooth and timely closing.

What is an Underwriter? A Title Insurer is often referred to as an "Underwriter" because they underwrite the risk associated with hidden defects covered by the title insurance policy. Some Underwriters in the United States have been issuing title insurance since the last century, providing thousands of policies per day. They are required by law to maintain financial reserves guaranteed to be available in the event they suffer a loss under one of their title insurance policies. A portion of every premium dollar is deposited to that reserve account as determined by state regulation. Most Underwriters operate in multiple states and territories, and are subject to the oversight of the insurance regulating bodies in each state or territory. While the title insurance policy is the product of the Underwriter, their multi-state activities make it difficult to be an expert on every local nuance. For that reason, many title insurance policies are issued on behalf of the Underwriter by a local Agent. Agents are highly skilled in researching and evaluating real estate records in their area of operation. Because they are community members and neighbors, they can be tremendously helpful to you. The agents review all relevant records for matters affecting title covered by the policy. The effect of those items is analyzed and a report or commitment for title insurance written. The report or commitment is a statement of the Underwriter's willingness to insure ownership of the record title, and of the outstanding liens, encumbrances and other matters affecting that title. The title insurance policy, when issued, will remain in effect for as long as you own your property (or have an interest in it).

What happens if I have a problem?
Our role as a title insurance and escrow agent is to perform the necessary steps before your real estate transaction is settled so that you do not encounter any problems after the transaction is closed. However, there are occasions where a problem may arise, and you need some assistance in resolving that problem. If such a situation occurs on your transaction, please contact the Manager of the branch that insured and/or closed your transaction. In most cases, they should be able to assist you in finding a timely solution that leaves you completely satisfied. In the unlikely event you are not satisfied with the responsiveness of the Branch Manager, please contact the company’s Chief Operating Officer or President in the corporate office at (800) 826-1801 for assistance. Our goal is to provide you, our customer, with the peace of mind that your problem will be resolved quickly and fairly, allowing you to focus on other things that are likely much more important to you.