FAQ's

Why do I need a title company?

Traditionally, real estate transactions have been among the most complex and least well understood undertakings most individuals ever engage in. In order to protect the interests of property owners and purchasers, the title company acts as a trusted agent responsible for ensuring the integrity of the property's title as well as receiving and disbursing all funds related to the transaction. Title companies are required to be licensed by the state they operate in and must maintain professional liability insurance and fidelity and surety bonds.

Why is the lender requiring that I purchase title insurance?

The mortgage marketplace is dependent on the availability of providers willing to indemnify lenders in the event of a title failure. Without this assurance, lenders would be forced to charge substantially higher interest rates to borrowers to compensate for the increased risk. By transferring this risk to a title insurer lenders are able to offer more mortgages at lower interest rates. Although the requirement to purchase lender's coverage is solely intended to benefit the lender it is definitely in the borrower's interest to purchase a one-time title insurance policy rather than pay a higher interest rate over the life of the loan.

Should I purchase owner's coverage?

While there is no requirement to purchase an owner's policy, all title insurers offer simultaneous issue lender/owner policies that not only meet the lender's requirement for insurance, but provide the property owner with several significant protections and benefits. By purchasing owner's title insurance, the property owner can avoid significant expense in the future by offering discounts on future title insurance purchases if the owner refinances the property.

How does the settlement process happen?

Real estate settlements require several parties to come together at once to achieve a desired outcome. There are numerous milestones in the process that must be reached and all of them are sequentially dependent, that is one is required to be achieved to undertake the next. The title insurer, the lender, the broker (if applicable), the buyer and the seller (and their agents) all have roles to play. The title company is conductor of this symphony; responsible for creating the pleasing music that is a well-conducted settlement.

If you have specific questions about your own unique situation, do not hesitate to contact us. We will gladly assist you in any way possible.