What Does Title Insurance Protect Me From?

By including title insurance when purchasing property, your title insurer takes on accountability for legal expenses to defend your property title, should it ever be challenged. Many different occurrences can come into play to warrant the need for title insurance. The title company responsible will then take on the legal expenses to defend the property for as long as you are in possession of an interest in the property under the title. If the defense is not successful, you will be reimbursed for any loss of value of the property. Common Things Title Insurance Covers: 1. UNDISCLOSED HEIRS, FORGED DEEDS, MORTGAGE, WILLS, RELEASES AND OTHER DOCUMENTS 2. FALSE IMPRISONMENT OF THE TRUE LAND OWNER 3. DEEDS BY MINORS 4. DOCUMENTS EXECUTED BY A REVOKED OR EXPIRED POWER OF ATTORNEY 5. PROBATE MATTERS 6. FRAUD 7. DEEDS AND WILLS BY PERSON OF UNSOUND MIND 8. CONVEYANCES BY UNDISCLOSED DIVORCED SPOUSES 9. RIGHTS OF DIVORCED PARTIES 10. ADVERSE POSSESSION 11. DEFECTIVE ACKNOWLEDGEMENTS DUE TO IMPROPER OR EXPIRED NOTARIZATION 12. FORFEITURES OF REAL PROPERTY DUE TO CRIMINAL ACTS 13. MISTAKES AND OMISSIONS RESULTING IN IMPROPER ABSTRACTING 14. ERRORS IN TAX RECORDS

Talk the Talk – Know the Mortgage Lingo at Closing

What in the world are they talking about? Many borrowers go through the closing process in a haze, nodding, smiling, and signing through a bunch of noise that sounds like Greek. Even though you may have put your trust in your real estate and mortgage team, it helps to understand some of the terminology so that you can pay attention to specific details that may impact the decisions you need to make. Common Closing Terms / Processes: 1. Docs Sent – Buyers sit on pins and needles through the approval process, waiting to find out if they meet the lender’s qualification requirements (which include items such as total expense to income, maximum loan amounts, loan-to-value ratios, credit, etc). The term “docs sent” generally means you made it!! The lender’s closing department has sent the approved loan paperwork to the closing agent, which is usually an attorney or title company. Keep in mind that there may be some prior to funding conditions the underwriter will need to verify before the deal can be considered fully approved. 2. Docs Signed – Just what it implies. All documentation is signed, including the paperwork between the borrower and the lender which details the terms of the loan, and the contracts between the seller and buyer of the property. This usually occurs at closing in the presence of the closing agent, bank representative, buyer and seller. 3. Funded – Show me some money! The actual funds are transferred from the lender to the closing agent, along with all applicable disclosures. For a home purchase, if the closing occurs in the morning, the funds are generally sent the same day. If the closing occurs in the afternoon, the funds are usually transferred the next day. The timing is different for refinancing transactions due to the right of rescission. This is the right (given automatically by law to the borrower) to back out of the transaction within three days of signing the loan documents. As a result, funds are not transferred until after the rescission period in a refinancing transaction, and are generally received on the fourth day after the paperwork is signed. (Note – Saturdays are counted in the three day period, while Sundays are not). The right of rescission only applies to a property the borrower will live in, not investment properties. 4. Recorded –

Let’s make it official. The recording of the deed transfers title (legal ownership) of the property to the buyer. The title company or the attorney records the transaction in the county register where the property is located, usually immediately after closing. There you have it – an official translation of closing lingo. As with any other important financial transaction, there are many steps, some of which are dictated by law, which must be followed.