TITLE INSURANCE
Title Insurance protects against things that have happened in the past and is based on loss prevention. Because of that, a more significant percentage of the cost is spent preventing the problems from occuring.
There are two types of Title Insurance: Lenders and Owners
Owner’s Policy
Owner’s policies will protect the owners or their heirs for as long as they own the property. Coverage varies by policy.
LENDER’S SERVICES
Lender’s policies protect the lender’s interest in the property. They cover the loan amount and last through the life of the loan. Most lenders will require a policy.
LIMITED SEARCH
Limited searches include a title report of a residential property going back 10 years. A policy is NOT issued.
Costs & Searches
When your title company conducts the search, they typically search the public records.
Up Front Costs
- Title search
- Identifying risks
- Eliminating risks that could be in a future claim
Places Searched
- The offices of the recorders or registers
- Deeds
- Clerks of courts
- Other officials
- Title plant—a database of records
Searched For
- Second or third mortgages
- Judgments
- Liens
- Special taxes and levies
- Life estates
- Easements
- Right-of-Way
- Street, sewer, or special assessments
of homes have title issues
Hazards
Your owner’s policy protects your largest financial investment. One out of three residential real estate transactions has an issue with the title.
The title officer usually resolves most of these issues prior to close.
INCLUDE:
- Mistake in the public records
- Liens
- Easements
- Right-of-way
- Life Estates
- Air rights
- Forgeries in the chain of title
- A claim by a previously undisclosed relative of a former owner
- Subsurface rights
- Future interests
Title Insurance VS.
Homeowners insurance
Insurance
Title Insurance
| Protects | Property Title |
| Risk | Eliminates Risk |
| Covers | Events in the past |
| Cost | One time fee at close of escrow |
Insurance
Home Insurance
| Protects | Home |
| Risk | Prices Risk |
| Covers | Future Events |
| Cost | Monthly, Quarterly, or Annual Premium |
CURE SHEET
The following download is a guideline as to when a Cure Period Notice would be deemed applicable when using the 2020 AAR Residential Resale Purchase Contract.
