WHAT DOES A TITLE COMPANY DO?

Title Companies play a quiet role in a Real Estate transaction. However, we handle one of the most delicate parts of the process. We make sure that the sellers listed on the contract owns the property being sold and research if there are any liens or judgments against the sellers that attach to the property being purchased. We coordinate with all parties involved in the settlement and we look for any potential problems in the transactions then clear any “title defects” in a timely manner. At the settlement table we collect funds from parties involved, transfer ownership, and issue title insurance for both purchaser and lenders.The title company prepares and records the Deed, Deed of Trust and all necessary documents that must be recorded.

WHAT IS TITLE INSURANCE AND WHY DO I NEED IT?

There are two types of title insurance.The Lender’s policy is a separate policy which protects the lender’s interest in the property, up to the outstanding balance of the buyer’s mortgage. The loan policy protects the lender against loss due to unknown title defects. This policy protects only the lender’s interest; it does not protect the buyer.The Owner’s policy protects the owners against loss due to any “hidden hazard” that can result in a claim against your ownership. Owner’s coverage provides for legal defense and any liability or loss that may arise.

DO TITLE COMPANIES CHARGE DIFFERENT RATES FOR TITLE INSURANCE?

Title insurance rates are set by state insurance commissions and are based on the purchase price of your property (owner’s policy) and the loan amount (lender’s policy)

AM I REQUIRED TO PURCHASE TITLE INSURANCE?

Lenders will require that you purchase a lender title insurance policy on their behalf, while the Owner’s title insurance policy is optional. However, by purchasing the owner’s policy you are making the smartest decision.

HOW LONG DOES MY COVERAGE LAST?

For as long as you or your heirs retain an interest in the property, and in some cases, even beyond.

IF THE TITLE COMPANY DOES ITS JOB RIGHT, WHY SHOULD I NEED TO PURCHASE TITLE INSURANCE?

The title examination performed by the title company is thorough, but limited to public records. Suppose a previous owner recorded his or her marital status incorrectly, resulting in a possible claim by a legal spouse. Or a prior owner of your property recorded a forged deed. There would be no way for the title company to know that this document was a fake. At some point, the rightful owner could come forward to claim ownership of the property. Without title insurance, your investment is at risk.

WHO CHOOSES THE TITLE COMPANY?

By law the consumer have the right to choose the title company of choice to conduct your settlement.

DO ALL TITLE COMPANIES CHARGE THE SAME FEES FOR THEIR SERVICES? IF NOT, SHOULDN’T I BASE ON THE LOWEST TITLE CHARGES TO PICK MY TITLE COMPANY?

Fees may vary from company to company. For accurate service, title companies should provide you or your agents with a good faith estimate of their fees prior to the scheduled closing date. When selecting your title company it is more important to consider the qualifications of the title company, such as quality of service, knowledge and experience.

Comparison of Coverages
Standard ALTA Owner’s Policy versus The Eagle Protection Owner’s Policy
4

COVERAGE ALTA EAGLE
Someone else owns an interest in your title
Improperly executed documents
Pre-policy forgery, fraud and duress
Defective recording of any document
Undisclosed restrictive covenants
A lien on your title because of a security deed, judgment, tax or special
assessment, or a charge by a homeowner’s association
Unmarketable title
Mechanics’ liens
Forced removal of a structure which encroaches onto another property or an easement
Forced removal of structure which violates existing zoning law*
Forced removal of a structure because of a violation of a restriction in Schedule B
Inability to use land for single-family dwelling because of a violation of a zoning ordinance or restriction in Schedule B
Pays rent for substitute land or facilities
Rights under unrecorded leases
Plain language
Unrecorded easements
Building permit violations*
Compliance with Subdivision Map Act, if any*
Restrictive covenant violations
Map, if any, not consistent with legal description
Covenant violation resulting in reversion
Enhanced marketability
Violations of building setbacks
Discriminatory covenants
Actual vehicular and pedestrian access based on a legal right
Boundary walls and fence encroachment*
Post-policy forgery
Post-policy encroachment
Post-policy damage from minerals or water extraction
Post-policy Living Trust coverage for trustee
Post-policy Living Trust coverage for beneficiary
Post-policy automatic increase in value
Post-policy adverse possession
Post-policy cloud on title
Post-policy prescriptive easement
Insurance coverage forever
* Subject to deductible and maximum indemnity liability,
which may be less than policy amount.