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What Title Insurance Is.

Title insurance searches the public records and to some extent private records and provedes a gaurantee that there are no undisclose leins against the subject property. Title insurance is not required by law in order to make a real estate transaction. All lending institutions do require title insurance. There are two separate title insurance polices.
Buyer's Title Insurance.

The amount of the buyer's title insurance is based on the amount of the loan. The Title Company is gauranteeing the title to the property to the lending institution, so it is based on the amount of the loan.
Seller's Title Insurance.

The amount of the seller's title insurance is based on the amount of the sales price of the property to be insured. The Title Insurance Company is gauranteeing the title to the property to the seller in order to protect the seller from liability in case of any cloud on the title to the subject property. Since the loan amount is less than the sales amount, the seller's title insurance cost is normally more that the buyer's insurance cost.

The Process of the Title Search.


This is a graphical representation of the life of a Title Search. The Title Company does offer other services during the course of the transaction. The Title Company Representatives often provide courier service and in other ways provide services designed to expedite the escrow process.
How To Prepare For Your Closing.


The buyer and the seller sign a purchase agreement or sales contract. Usually, at this point, the buyer is asked to make a small initial payment, often called an "earnest money deposit," as evidence of intention to buy the property. Then the buyer will apply to a lender for a loan. The amount of the seller's title insurance is based on the amount of the sales price of the property to be insured. The Title Insurance Company is gauranteeing the title to the property to the seller in order to protect the seller from liability in case of any cloud on the title to the subject property. Since the loan amount is less than the sales amount, the seller's title insurance cost is normally more that the buyer's insurance cost. The sales agreement the buyer signed describes the property, states the purchase price, sets forth the method of payment and may name the date and place where the "closing" or actual transfer of the property will occur. This meeting or transaction is sometimes called the "settlement" or " passing of papers." A new deed will be prepared transfering ownership of the property to the buyer. Th lender will require the buyers signature on a document, usually a promissory note, as evidence that they are personally responsible for repaying the loan. Also, the buyer will sign a mortgage on the property as security to the lender for the loan. The mortgage gives the lender the right to have the property sold if the buyer fails to make the payments. Sometimes a "deed of trust" or "security deed" is used instead of of a mortgage, but the legal effect is virtually the same. Before the buyer exchanges these papers, the property may be surveyed, appraised and inspected for termites or other structural problems, and the ownership of title will be checked in county and court records.


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