FAQs
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WHAT IS A TITLE COMPANY?
Title companies conduct "title searches" looking at real estate records trying to find information about the property you are trying to sell, purchase or refinance. Such information includes: identifying the legal owner of the property, liens, judgments and unpaid taxes. After the search is complete, the title company will complete a "commitment of title insurance" on behalf of either the lender or the Buyer. This step ensures the buyer is receiving a clear title on the property and any outstanding issues are resolved. Once these steps are done, the title company will use their underwriter to issue a policy of title insurance covering the lender and the buyer.
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CAN A TITLE COMPANY CONDUCT ESCROW?
A title company generally acts as an escrow agent. They can explain all the costs involved for all parties, secure the lender, and prepare a closing statement. The title company will then collect money from the parties, Buyer and lender, signed documents, and obtain approval to disburse from the lender. The involved parties will ensure funds are made available to the title company prior to closing date. Funds are used to pay all the expenses, any mortgages, and the seller their proceeds.
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WHAT IS A CLOSING ATTORNEY?
A closing attorney represents either the buyer or the seller in a real estate transaction. They are available to review the documents and protect you from potential mistakes in the closing process.
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WHAT DOES TITLE INSURANCE PROTECT YOU AGAINST?
There are many things title insurance protects you against, but some of the most common are: fraud, forged deeds, releases or wills, deeds by minors or by persons of unsound mind, deeds by persons supposedly single, but in fact married, liens, unpaid taxes and unpaid inheritance.
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WHAT IS THE DIFFERENCE BETWEEN A TITLE COMPANY AND A CLOSING ATTORNEY?
There is a bit of overlap between title company and closing attorney responsibilities. Both can conduct title research and file paperwork on your behalf. However, only the title company issues the insurance. The closing attorney reviews all the documents associated with the deal, will help you look for fees to eliminate, and point out any additional liabilities. Title companies have attorneys on hand, but they are there to answer and solve issues related only to the title search and insurance. They guide you and give you feedback about the sale or purchase of the house.
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WHAT IS A TITLE?
A title is a right to ownership of specific real estate property. Included is the right of possession, right of exclusion, right of control, the right of enjoyment, and right of disposition. Titles can change hands through a will, court decree, law, or by selling the property. Any time a title is transferred it is documented in a deed and recorded with the applicable county recorder office.
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WHAT IS TITLE INSURANCE?
Having title insurance protects the lender and the buyer from financial loss due to title defects.
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WHAT CAN MAKE A TITLE DEFECTIVE?
Many defects can hinder the transfer of a title: fraud, false affidavits, unpaid judgments, unfiled liens, forged documents, improperly indexed documents and errors in tax records.
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DO I NEED TITLE INSURANCE?
Unless you are paying for your home out of pocket, your lender will more than likely require you to purchase title insurance. It's advisable to purchase a policy to protect yourself as well. By doing so, you are protecting yourself from title defects that may give someone else claim to your property.
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HOW DOES TITLE INSURANCE PROTECT YOU?
The insurance policy will pay for any legal defense costs and reimburse you for financial loss due to claims against the property by another party due to losing the house to someone else's claim on it.
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WHAT IS A TITLE REPORT?
The title report is prepared by the title company and discloses any information about easements, restrictions, ownership, and liens on the home.
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WHAT IS A SETTLEMENT?
The settlement is another term for "closing." It's the completion of a real estate transaction where the title passes from the seller to the buyer.
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WHAT IS CLOSING?
Closing is another term for "settlement." It refers to the part of the real estate transaction where the title moves from the seller to the buyer's hands.
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ARE ALL TITLE COMPANIES CLOSING COMPANIES?
Unfortunately, no. Some title companies only sell the insurance and others only work in escrow. Fox Title can help you with all of your closing needs.
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WILL MY REAL ESTATE AGENT KNOW ANYTHING ABOUT THE TITLE TO THE HOME?
Many real estate agents will have a thorough understanding of what a title is, the nuances of title insurance, and will recommend a trusted title company. However, no one will know precisely what information is related to the title until a title search is completed.
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HOW MUCH CAN I EXPECT TO PAY FOR TITLE INSURANCE?
Rates vary depending on how much you paid for the home. Ask us for a quote, we offer competitive rates, saving you on your closing costs.
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WILL I HAVE TO PAY FOR TITLE INSURANCE EVERY MONTH?
No. Title insurance, unlike other insurance policies, is not billed as a monthly premium. It's a one-time cost you pay at the time you purchase your property.
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CAN THE BUYER PICK THE TITLE COMPANY?
Yes, but typically the Title Company is selected by the Seller, as the Seller is providing the insurance for the Buyer.
