FREQUENTLY ASKED QUESTIONS

Q:

What is a title?

A:

Evidence or right that a person has to the ownership and possession of land. A defect in title can be any legal right held by someone other than the owner to claim property or to make demands on the owner of the property.

Q:

What can cause a title defect?

A:

Any number of issues that remain undisclosed despite even the most meticulous search of public records can make a title defective. These issues are dangerous because they usually do not surface for many months or years after the property is purchased. In addition, the homeowner may be forced to spend substantial amounts of money on legal defense against such issues and still may lose the property. An Owner’s Policy of Title Insurance purchased from Realstar Title provides complete protection from the following in addition to other hidden defects:

Fraud - false claims of ownership, false representation, and forged documents. Creditor Claims. Incorrect Legal Descriptions. Errors in tax records. Improper deeds - by persons of unsound mind, or minors. Deeds delivered after death, or without the grantor consent. Unsettled estates. Liens - for unpaid estates, inheritance, income, and property taxes. Irregular court proceedings. Defective foreclosures.

Q:

What is title insurance?

A:

A contract to protect an owner against losses arising through title to real property. If the title is insurable, the Title Company that insures the property guarantees the owner against losses or expenses to the extent of the policy issued. Title insurance is a one-time premium purchased at the time of closing.

Q:

What are the two types of title insurance?

A:

In most cases, the lender requires that the borrower purchase a Lender's Policy of Title Insurance, which insures that the lender has a valid and enforceable lien or mortgage on the property. It does not protect the purchaser. An Owner's Policy of Title Insurance, however, protects the purchaser from title defects that existed prior to the issue date of the policy. It also covers the full cost of any legal fees you may incur in defending your title.

Q:

When should a prospective homebuyer look into it?

A:

Realstar Title should be contacted once the homebuyer makes the decision to look for a new home. Our team of highly experienced staff can assist the homebuyer with any questions and details necessary to guide them in finding and closing on the home they have always wanted.