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TITLE INSURANCE

Title Insurance protects against things that have happened in the past and is based on loss prevention. Because of that, a more significant percentage of the cost is spent preventing the problems from occuring.

There are two types of Title Insurance: Lenders and Owners

Owner’s Policy

Owner’s policies will protect the owners or their heirs for as long as they own the property. Coverage varies by policy.

LENDER’S SERVICES

Lender’s policies protect the lender’s interest in the property. They cover the loan amount and last through the life of the loan. Most lenders will require a policy.

LIMITED SEARCH

Limited searches include a title report of a residential property going back 10 years. A policy is NOT issued.

Costs & Searches

When your title company conducts the search, they typically search the public records.

Up Front Costs

  • Title search
  • Identifying risks
  • Eliminating risks that could be in a future claim

Places Searched

  • The offices of the recorders or registers
  • Deeds
  • Clerks of courts
  • Other officials
  • Title plant—a database of records

Searched For

  • Second or third mortgages
  • Judgments
  • Liens
  • Special taxes and levies
  • Life estates
  • Easements
  • Right-of-Way
  • Street, sewer, or special assessments

of homes have title issues

Hazards

Your owner’s policy protects your largest financial investment. One out of three residential real estate transactions has an issue with the title.

The title officer usually resolves most of these issues prior to close.

INCLUDE:

  • Mistake in the public records
  • Liens
  • Easements
  • Right-of-way
  • Life Estates
  • Air rights
  • Forgeries in the chain of title
  • A claim by a previously undisclosed relative of a former owner
  • Subsurface rights
  • Future interests

Title Insurance VS.
Homeowners insurance

Insurance

Title Insurance

ProtectsProperty Title
RiskEliminates Risk
CoversEvents in the past
CostOne time fee at close of escrow

Insurance

Home Insurance

ProtectsHome
RiskPrices Risk
CoversFuture Events
CostMonthly, Quarterly, or Annual Premium

CURE SHEET

The following download is a guideline as to when a Cure Period Notice would be deemed applicable when using the 2017 AAR Residential Resale Purchase Contract.