The Buyer Experience
What is Title Insurance?
Title insurance is a type of insurance that protects property owners and lenders from financial losses or legal disputes related to the ownership of a property. It provides coverage for any defects or issues with the title that may arise after the purchase or mortgage of a property.
When a property is being sold, a title search is conducted by the title company to examine the public records and verify the history of ownership, any outstanding liens, encumbrances, or other potential issues that could affect the title. However, there is always a possibility that undiscovered or unknown defects in the title may arise in the future.
Title insurance provides coverage for the policyholder against financial losses and legal expenses that may arise due to such defects in the title. This could include claims from previous owners, undisclosed heirs, fraud, forgeries, mistakes in public records, or unpaid taxes or mortgages.
There are two types of title insurance policies: owner’s title insurance and lender’s title insurance. Owner’s title insurance protects the property owner, while lender’s title insurance protects the lender or mortgage company. Typically, when a buyer obtains a mortgage to purchase a property, the lender will require lender’s title insurance to protect their investment. However, it is highly recommended for buyers to also obtain owner’s title insurance to protect their own interests.
Title insurance is a one-time premium paid at the time of closing and provides coverage for as long as the owner or the lender has an interest in the property. It is an essential safeguard that helps ensure peace of mind and financial security for property owners and lenders.
Your Path to a Succesful Closing
1. File is Opened
A purchase agreement is received with a request to open a title order and begin the property and assessment research.
Our Closing Team enters data into our closing software.
2. Welcome Documents
The buyer(s) receive an introduction email along with welcome documents and a questionnaire.
The county records are searched and sent to our Title Examiner.
A title commitment is prepared and sent to the Closing Team.
3. Closing Schedule
Our Closing Team reviews the title commitment and retrieves documents needed to clear exceptions.
The closing is scheduled and all parties are notified of the date, time and place.
4. Settlement Statement
A settlement Statement is prepared and reviewed by the lender and the Realtor®.
A final copy is sent to the client prior to closing along along with instructions on proceeds.
5. Funds to Close
The closer will provide the buyer(s) with an amount needed for closing.
We accept Cashier’s Check or Wire. A wire will require a phone call confirming our instructions.
6. Closing Day
Closing documents are explained and signed.
The closer prepares copies and disbursements. Signed copies along with homesteading are provided to the clients.
Deeds and mortgages are recorded and title insurance is issued upon verification of recordings.
What Buyers Should Bring to Closing
- A valid, government issued photo ID/DMV Paperwork (if applicable)
- Green Card (if applicable)
- Spouse (if applicable)
- Any required documents as requested by your closing team. For example, Certified Divorce Decrees, Probate Documents, Power of Attorney, Death Certificate, etc.
- The Funds required to close. Only good/certified funds are accepted for closing (Cashiers Check or Wire)
- For Wire funding, please contact North Title and/or Financial Institution to confirm wire instructions prior to wiring any funds.
- When wiring, coordinate the wire transfer with your financial institution as transfers may take up to 72 hours or possibly longer.
