Q: What role does a title company play?
A: A title company coordinates the date and time that the closing will occur with all of the parties involved (buyers, sellers, agents, and lenders) and prepares the documents needed to complete the closing. The title company initiates the title search and verifies that all taxes, water bills or HOA dues are paid or collected at closing. We also order any certifications required for closing (i.e. Survey, Termite, Well or Septic).
Q: How do I schedule a closing with your office?
A: In order for us to schedule your closing we need a copy of the ratified contract (for a purchase) or a request from you or your lender (for a refinance). Once received we would need approximately two weeks to properly prepare for closing.
Q: How much money do I need to bring to closing?
A: An exact figure is not available until we receive the closing documents from your lender. However, your lender will provide you with a Good Faith Estimate which will give you an estimated total amount needed. We will make any necessary adjustments at the time of settlement.
We prefer a wire transfer; however, you can provide a Certified or Cashier’s check made payable to Title Professionals, Ltd. A personal check will be accepted if the amount needed is $500 or less.
Q: What additional items do I need to bring to closing?
A: Other than your funds needed for closing, you will also be required to bring a current government issued photo ID which is needed for notary purposes as well as to comply with other regulations. Your lender may also require you to bring a copy of your homeowner’s insurance policy with paid receipt if not received by them prior to closing.
Q: I am selling my existing home and a different title company/attorney’s office is handling the closing. Will you accept a check from their office?
A: In most cases, yes; however please verify with our office before closing in case other arrangements need to be made (i.e. wire transfer). This is also true if you are purchasing a home and we are handling the sale of your home, you will need to verify that they will accept a check from Title Professionals, Ltd.
Q: I am refinancing my principal residence and receiving cash out, will I be given that money on the day of closing?
A: No. Lenders are required to give you three business days (excluding Sundays and holidays) to evaluate decision and whether you want to continue with the new loan. After the three business days have passed and you have not canceled the loan, your lender will send us the funds to disburse your loan and any money you are expected to receive.
Q: What is a title?
A: A title is the evidence, of right, that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use.
Q: What is a title search?
A: A title search is an examination of the records (i.e. deeds, court records and indexes), which provides a “chain” of ownership of a property. It provides information of all outstanding mortgages, liens or judgments. It also verifies the seller has the right to transfer the property to the purchaser at closing.
Q: What can make a title defective?
A: Any number of problems can exist and even the best title examination or search cannot protect your equity and home from matters not appearing in the public records. Here are just a few of the most common hidden defects:
- · Documents executed under false, revoked or expired powers of attorney
- · Creditor claims
- · Mistaken interpretation of wills and trusts
- · Improperly recorded legal documents
- · Incorrect representation of marital status
- · Undisclosed heirs
- · Incorrect legal descriptions
- · Forged deeds, mortgages, wills, releases of mortgages and other instruments
- · Federal, state inheritance and gift tax liens
- · Errors in tax records
- · Federal Condemnation without notice filing
- · Capacity of foreign fiduciaries
- · Duress in execution of documents
- · Deeds from minors or non-existent entities
- · Discovery of later will after probate of first will
- · Easements by prescription not discovered by a survey
- · Deeds delivered after death of grantor or grantee, or without consent of grantor
Q: What is title insurance?
A: Title insurance protects the purchaser and/or lender from losses that arise after a real estate closing from unknown liens or other defects that the most thorough title search doesn’t reflect. The title insurance policy will, in accordance with the terms of your policy, provide coverage for legal defense which may arise from a claim made, and if a loss arises, the policy will reimburse you for your actual loss, up to the face amount of the policy.
Q: When does it expire and how much does my title insurance policy cost?
A: Your title insurance policy never expires as long as you or your heirs own the property. Please call our office for a quote on title insurance.