Title Search - Title Insurance - US Mortgage
Module 1 - Title Insurance
1st Lawyer’s Title Corporation 1873
Title:
A
combination of all the elements that constitute a legal right to own, process,
use, control, enjoy and dispose off or Title is also called as the rights of
ownership which is recognized and protected by law.
Insurance:
Insurance
is a contract to protect against future loss.
It is a
contract to protect against future loss or it is a protection against a
specific loss over a period of time that is secured by the payment.
Insurance
is a protection against a specific loss over a period of time that is secured
by the payment of a regularly scheduled premium.
Types of Insurance:
1.
Life Insurance – Once Policy got matured the respective person will get that
insured amt.
2. Health
Insurance – Medical Expensive purpose, we can claim the Amt.
3. Travel
Insurance – Delay Medical coverage, belong while traveling time we can claim.
4. Credit
Insurance – If the person is no more and unpaid debts can be taken & Care.
Background to Title Insurance:
v The purchase of a house is probably the largest investment that anyone makes in their lifetime.
v It is understood that everyone wants to safeguard their rights and investment.
v Before the real estate transaction closes, the Title company performs an extensive search of all recorded documents related to the property.
v These records are then examined by experienced Title officers to determine their effect on the current status of ownership
v Further, a report is issued to the buyer or lender or their respective agents for review.
v This thorough examination allows all pending Title problems to be identified and cleared prior to the purchase of the property or financing for the purchase of a property
v However, even after the most careful research, some Title flaws may go undetected.
v Among the more common flaws to Title which are not of record are forgery, invalid court proceedings, mistaken legal interpretations, defective deeds, confusion due to similarity of names, previously unrecognized rights of spouses and undisclosed heirs.
v The protection against these flaws and other claims is provided by the Title Insurance policy which is issued after the transaction (purchase or financing for purchase of property) is complete.v This kind of Insurance protection is an additional service you receive from Title companies.
Title Insurance:
It is
an Insurance to insure your rights and interests to the property to facilitate
the smooth transfer of ownership and to protect you from future claims against
the property.
It is the most effective, most accepted, and least
expensive way to protect your ownership rights.
Why do we need Title Insurance?
v To
protect possibly the most important investment you'll ever make - the
investment in real estate.
v A
lender goes to great lengths to minimize the risk of lending money for the
purchase of real estate. First, credit is checked as an indication of the
borrower's ability to repay the loan.
v Then,
the lender seeks assurance that the quality of the Title to the property to be
acquired and which will be pledged as security for the loan is satisfactory.
The lender does this by obtaining a loan policy of Title insurance.
Risk Covered by the Title Insurance:
v Forgery
and Impersonation - False impersonation of the true owner of the property
v Lack
of Competency – Age (Minors)
v Capacity
or Legal authority of a party - Forged deeds, releases or wills
v Deed
not joined in the necessary party - Undisclosed or missing heirs
v Lack
of right of access - Instruments executed under invalid or expired power of
attorney
v Deed
not properly recorded
v Encroachment
v Erroneous
or Incorrect Surveys (legal)
v Undisclosed
Prior Mortgage or Lien and Easement and Restriction
v Silent
liens (such as mechanic’s lien or estate tax liens)
v Pre-existing
violation of subdivision laws, zoning, ordinances or CC&R’s (covenants,
conditions and restrictions)
v Post
Policy Forgery
v Forced Removal of improvement due to lack of building.
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