FAQ

  • What is title Insurance?
  • A type of insurance which protects against hidden defects or claims due to defects in the title to real estate.
  • What does this type of insurance cover?
  • There are two types of insurance: 1. Mortgagee or Lender Protection — Most lenders require security when money is borrowed for real estate loans. This insurance provides coverage to your lender.
    2. Owner’s protection — Owner’s title protects the person in title to the property as long as that person owns the property.
  • What is the cost and who pays for this?
  • The cost of title insurance is based on a certain formula or rate schedule calculated according to the value of the property or mortgage amount. The price is typically split between buyer and seller.
  • What is “escrow” or closing services?
  • Escrow services are the services provided by the title company in order to close the transaction. By following contract details, processing documentation and disbursing loan funds for final settlement the title company “closes” or finalizes all details for the sale to occur.
  • What are typical closing costs and who pays for this?
  • Typical closing costs include: Recording fees, closing fees by lender or title company, title insurance premiums, revenue stamps, commissions and lender charges. Many of the fees are negotiable as to who pays for them however it is customary that buyer pays for his own loan charges and the costs associated with the sale itself are split between buyer and seller.
  • Why do I need a title company to close my transaction?
  • Title professionals are well versed in the real estate process and what needs to occur to pass “clear” title to the new buyer. The title agent will be able to order all necessary documentation and adhere to government guidelines in order to make sure that the transaction takes place in a timely and efficient manner. Title companies work closely with lenders to comply with all necessary instructions in order to make the closing happen according to everyone’s expectations. In addition, the title company will handle the recording of the legal documents at the register or deeds office.
  • What do I bring to closing and how long does it take?
  • Closing normally takes between 30 minutes to one hour. You will need proper identification and any funds required to close.
  • What other services does a title company provide?
  • Title companies also provide limited lien searches, 1031 tax-deferred exchange services and can help with questions you may have regarding the real estate process.