Title

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What is a Title Search?

Before issuing a policy of title insurance, the title company must

review the numerous public records concerning the property

being sold or financed. The purpose of this title search is to

identify and clear all problems before the new owner takes title

or the lender loans money.

Our research helps us to determine if there are any rights or

claims that may have an impact upon the title such as unpaid

taxes, unsatisfied mortgages, judgments, tax liens against the

current or past owners, easements, restrictions and court

actions. These recorded defects, liens, and encumbrances

are reported in a “preliminary report” to applicable parties.

Once reported, these matters can be accepted, resolved or

extinguished prior to the closing of the transaction. In addition,

you are protected against any recorded defects, liens or

encumbrances upon the title that are unreported to you and

which are within the coverage of the particular policy issued in

the transaction.

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What Types of Policies Are There?

Protection against flaws and other claims is provided by the

title insurance policy which is issued after your transaction is

complete. Two types of policies are routinely issued at this

time: An “owner’s policy” which covers the home buyer for the

full amount paid for the property; and a “lender’s policy” which

covers the lending institution over the life of the loan. When

purchased at the same time, a substantial discount is given in

the combined cost of the two policies. Unlike other forms of

insurance, the title insurance policy requires only one moderate

premium for a policy to protect you or your heirs for as long

as you own the property. There are no renewal premiums or

expiration date.

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How is Title Insurance Different Than Other Types of

Insurance?

With other types of casualty insurance such as auto, home,

health, and life, a person thinks of insurance in terms of future

loss due to the occurrence of some future event. For instance,

a party obtains automobile insurance in order to pay for future

loss occasioned by a future “fender bender” or theft of the car.

Title insurance is a unique form of insurance which provides

coverage for future claims or losses due to title defects which

are created by some past event (i.e. events prior to the

acquisition of the property).

Another difference is that most other types of insurance

charge ongoing fees (premiums) for continued coverage.

With title insurance, the original premium is the only cost as

long as the owner or heirs own the property. There are no

annual payments to keep the Owner’s Title Insurance Policy

in force. While some people balk at another “closing fee”,

title insurance is pretty reasonable considering the policy

could last a lifetime.

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How Does a Title Insurance Policy Protect Against

Claims?

If a claim is made against the owner or lender, the title

insurance company protects the insured by:

1.

Defending the title, in court if necessary, at no cost to

owner/lender, and

2.

Bearing the cost of settling the case, if it proves valid,

in order to protect your title and maintain possession

of the property.

Each policy is a contract of “indemnity.” It agrees to assume

the responsibility for legal defense of title for any defect

covered under the policy’s terms and to reimburse for actual

financial losses up to the policy limits.

Please know that you can lean on us anytime, as we are here as a resource.

Ryan J. Orr

Ticor Title