A home is usually the largest single investment any of us will ever make. When you purchase a home, you will purchase several types of insurance coverage to protect your home and personal property. Title unsurance protects against hidden title hazards that may threaten your financial investment in your home.
Title Insurance is the type of insurance that protects a lender and/or purchaser against items regarding the condition of title to real property. "Title" is the combination of elements that constitute the legal right to own, possess, use, control and enjoy real estate. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.
There are many different types of title insurance policies. Generally, however, you will be requesting a Lender's Title Insurance Policy with full ALTA coverage or junior lien coverage or an Owners Title Insurance Policy. A Lender's policy insures the validity and priority of the insured mortgage. An Owners' policy protects and insures the actual owner of the property against any claims about the right to use, own, etc.
This is simply a brief history of the ownership of a particular piece of property. It lists who bought the subject property, who sold it and when the transfers occurred. The information is taken from the transfer documents that have been recorded in the county recorder/registrar's office.
Joint tenancy is a type of ownership of property in which two or more persons own an undivided interest in the whole property. The primary characteristic of this type of ownership is the right of survivorship. Upon the death of one of the owners, title will pass to the remaining owner(s). To perfect the transfer, an Affidavit of Survivorship along with a certified copy of the death certificate must be recorded in the County Recorder/Registrar's Office. If title is not held as joint tenants, title to the property will not transfer until Probate proceedings have been held.
Properly recorded mortgages and other liens must be released by the lien holder after they have been paid off or they remain as a cloud on title. The release or satisfaction needs to be recorded in the proper location to remove this cloud. Unfortunately, satisfactions seem to have a hard time making it to the courthouse. Whenever your title commitment lists outstanding liens, a new satisfaction needs to be obtained from the lien holder or a Letter of Indemnity needs to be obtained from the Title Company that paid off the item. Benepartum Title will help "clear" outstanding liens and other title issues. Fax your request to the appropriate closing office and the designated title clearance assistant will make the necessary requests for you.
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