1. Why is a title search necessary?
A title search is a search of the public records which discloses who owns the property and how they obtain title. It will also show any recorded liens that the property may be subject.
2. If a title search is done and reviewed carefully, why is title insurance still needed?
Even the most diligent search of the public records could fail to disclosure a number of title defects. Title insurance indemnifies against loss if any of the following hidden hazards result in a claim against ownership:
a) a forged deed;
b) a title transfer by someone under age;
c) a married person convening real estate without his or her spouse;
d) fraudulent impersonations;
e) undisclosed heirs;
f) false affidavits
3. How long does it take to obtain the information required to prepare for settlement?
Typically a standard re-sale transaction can be processed in approximately three weeks. This allows for the title search to be completed and reviewed, tax information, payoffs and other related fees to be obtained. A refinance may take only two weeks to complete. However, some jurisdictions may require more time to complete a title search.
4. When is a survey required?
A house location survey is intended to locate, describe a represent the positions of buildings or visible improvements affecting the property. On all purchases of improved property the lender will require a house location survey. Generally in a refinance a survey is not required as long as the borrower signs an affidavit stating that there are no changes since he purchased the property.
5. How much does a settlement cost?
Fees can vary depending on the jurisdiction the property is in and the amount of research that is required to obtain a clear title. Standard fees will reflect Title Search, Title Exam, Binder Preparation, and Title Insurance. Other costs will include Lien Certificates, Delivery Fees, and Recording Fees. Please contact our office for a FREE quote.
6. Does Title Insurance cost vary from one Title Company to another?
No. Title Insurance is regulated by the Maryland Insurance Commission.
