Frequently Asked Questions

Q.	What is a title?
A.	A title is the foundation of property ownership. It is the owner's right to possess and use the property.
Q.	Why is transferring the title to real estate different from transferring the title to other items, such as a car?
A.	Because land is permanent and can have many owners over the years, various rights in land may have been acquired by others (such as mineral, air or utility rights) by the time you come in to possession of it, even if the land has never before been built upon. In order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding.
Q.	What kind of problems can a title search reveal?
A.	A title search can show a number of title defects and liens, as well as other encumbrances and restrictions, including unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
Q.	What is Title Insurance?
A.	Title insurance is your policy of protection against loss if any of these problems or a "hidden hazard" result in a claim against your ownership.
Q.	How does title insurance protect my investment if a claim should arise?
A.	If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.
Q.	The owner of the property I want to purchase has lived in the home for only six months. He had a title search done when he purchased it. Why do I need another one?
A.	A. Because the owner could, in a very short time, do many things to encumber the title. For example, he could grant easements or construct improvements that encroach on adjacent property. He could get married or divorced, or have a lien filed against the property. It is necessary to conduct an up-to-date title search to uncover any such problems.
Q.	If the builder of my home already has title insurance on the property, why do I need it again when I purchase the land from him?
A.	A title policy insuring the builder does not protect you. It is not transferable. Also, a great many things could have happened to the land since the builder's policy was issued. Liens, judgments and unpaid taxes for which prior owners were responsible may be disclosed after you purchase the property, causing you aggravation and costing you money.
Q.	Are there different types of title insurance policies?
A.	Yes. Basically there are two different types of policies- a loan policy and an owner's policy. The loan policy protects the lender's interest in the property as security for the outstanding balance under the buyer's mortgage. The owner's policy safeguards the buyer's investment or equity in the property up to the face amount of the policy. (Title insurers in many states offer increased policy coverage through inflation endorsements to cover increases in value due to inflation.)
Q.	How long does my coverage last?
A.	For as long as you or your heirs retain an interest in the property and, in some cases, even beyond.