Learn about Title Insurance
Learn all about title insurance, why you need it, and more importantly, why you need a trusted partner like ITS Title in your corner. We are here to service our clients at the highest level, as well as provide information and education to our clients.
Why You Need Title Insurance
20 Reasons WhyYou Need Title Insurance
- A defective title may take away the house and the land on which it stands.
- A deed or mortgage in the chain of title may be a forgery.
- A deed or mortgage may have been signed by a person under age.
- A deed or mortgage may have been made by an insane person or one otherwise not competent.
- A deed or mortgage may have been made by a person other than the owner, but with the same name as the owner.
- A deed or mortgage may have been made under a power of attorney after the death of the principal, and therefore, be void.
- The testator of a will might have had a child born after the execution of the will, a fact that would entitle the child to claim his or her share of the property.
- A will may have been revoked by the testator after its execution.
- A conveyance by heirs-at-law or a person supposed to have died without a valid will may be defeated by a subsequent discovery and probate of a will.
- An heir or other person presumed dead may appear and recover the property or an interest therein.
- A judgment of levy upon which the title is dependant may be void or void able on a account of some defect in the proceedings.
- Without title insurance, you bear all the risk of loss from title disputes after buying or lending on real estate.
- Title insurance helps speed negotiations when you are ready to sell.
- By insuring the title you can eliminate delays and technicalities when passing your title on to someone else.
- If your title is ever affected by matters covered in the policy, title insurance reimburses you for the amount of your loss up to the policy limits.
- Each title insurance policy that is written is paid up, in full, by the first premium.
- Title insurance provides you with a defense in court against any litigation involving any alleged title defect, lien or encumbrance covered by the policy.
- Claims constantly arise due to marital status and validity of divorces. Only title insurance protects against these claims of supposedly non-existent or divorced “wives” or “husbands.”
- Most lawyers, in giving an opinion on a title, protect their client as well as themselves, by procuring title insurance.
- Title insurance gives you peace of mind with coverage against insured defects.
Title Insurance 101
What is Title Insurance?What is Escrow?
In Real Estate, title means a Right to Ownership, or a document stating a Right to Ownership.
Various kinds of claims can “cloud” a title. Some examples are:
- Relatives or heirs with superseding claims
- Fraud or misrepresentation
- IRS claims
Keeping it safe
The way for you to protect your interest in a Real Estate transaction is obtain the services of a title company.
What will the Title Insurance Company do for me?
Trained personnel will perform a title search to verify ownership and to identify any possible “clouds” on title. The result will show if the seller has the right to sell, indicated by ownership, and indicated any problems; ie: Liens, etc., that need to be resolved or acknowledged by the buyer before transfer of property.
Next, the title insurance company will insure the new owner against the possibility of error or forgery in the transfer of title. This is the transfer of title. This insurance is in effect for the duration of ownership.
Title Insurance is paid one time. Two separate policies are issued:
Owners Policy – Protects the new owner in any subsequent claims to the property.
Lenders Policy – Protects the lender against loss of unpaid loan balance in the event of a claim.
What is Escrow?
Escrow is a service in which a neutral party handles documents and monies, related to the Real Estate transaction for a fee. In escrow, all parties involved give their instructions to the escrow company which holds all kinds of documents until these instructions are completed.
Why do I need Escrow?
Whether you are the buyer or the seller, you want assurance that no funds or property will exchange hands until all instructions have been followed. Escrow will guarantee this.
The Escrow Instructions
Read the instructions carefully and make sure that they are accurate and complete. Any questions should be directed to the escrow officer. And remember, when you have a legal question, ask an attorney.
It’s Time to Close…
When all instructions of all parties to the escrow have been carried out the closing can take place. All funds are collected and all costs are paid. Title is then transferred. If you have any questions on title insurance, please contact Integrated Title Services.
CORE CE Credit Approved Classes
REPC/Addenda/Double Contracts (Core)2 Hour CE Credit
- Distinguish between addenda and counter offers
- Avoid practicing law by using approved Real Estate forms
- Craft a precise and understandable addendum and counter offer
Vesting & Ownership from “A to Z” (Core)2 Hour CE Credit
- Understand what is necessary to convey property out of different entities (i.e. individuals, corporations, trusts, etc…)
- Know how entities hold title
- Understand the components and signers of each entity
- know who can sell a property or sign the contract to sell based on ownership
Understanding 1031 Tax Deferred Exchange, (Core)2 Hour CE Credit
- Understand the basics of a 1031 Exchange with its rules and regulations
- Recognize when the use of a 1031 Exchange would be beneficial
- Educate your clients as to the flexibility of replacement properties
- Have a basic understanding of complex exchanges
Seller Financing (Core)2 Hour CE Credit
- Distinguish between legal, ethical, and practical regarding different sales and financing options
- Educate clients regarding risk factors when engaged in alternate sales/financing methods
- Safeguard clients when considering lease options, seller carry back, etc.
CE Approved Classes
Understanding Title Insurance2 Hour CE Credit
- Why you need title insurance
- Different types of policies
- Understanding the commitment & policy for title insurance
- Understanding endorsements
To Schedule a Class, Contact Shantel Reitz at Integrated Title Services
801-307-0160 or email email@example.com
CE Classes are approved by the Division of Real Estate for Continuing Education Credit.
Training classes are all one or more hours in length.