WHAT IS TITLE INSURANCE?
Unlike most insurance which protects against future events, title insurance protects against things that have occurred in the past. Title insurance protects you in the event there is a claim or loss against your ownership interest to the property. The policy contains information regarding the condition of your ownership rights to a piece of property. It provides you with a peace of mind to take the risk out of acquiring property whose legal history is unknown to you. For a one time premium you can receive a policy to protect against title defects or claims against the property, and it can even protect you after the property has been sold.
WHY DO I NEED TITLE INSURANCE IF THE TITLE HAS BEEN EXAMINED FOR DEFECTS?
Even the most thorough title search will not uncover certain possible defects. A few examples are: mistakes in the public records, forged deeds and other documents in the chain of title, or undisclosed heirs. Don't allow something to happen that may deprive you of your right to use the property or sell it. For a more detailed list of hidden title risks, click here.
WHY DO I NEED A LENDER'S AND AN OWNER'S TITLE POLICY?
Since both Lenders and Owners have an interest in the clear title to the property, Lenders will require a buyer to purchase a Lender's Title Insurance Policy. This policy protects the Lender, only, against possible title defects up to the maximum amount of the loan. The Owner has no coverage under this policy. In order for the Owner to be protected, they must purchase an Owner's Title Insurance Policy. Owner's title insurance will protect you against any covered loss up to the full policy amount and, depending on the type of policy you choose, can offer protection from fraud and forgery. There are two types of Owner's Policies available to the buyer when purchasing residential property as an individual - Standard Coverage and Enhanced Coverage. Please review our comparison chart to help you decide which policy's coverage is best for you.
WHY OBTAIN TITLE INSURANCE FROM TSG?
TSG’s in-house title department shares more than 150 years of real estate title experience. We always obtain a 60 year chain of title search from an independent title examiner, and your title will be reviewed by two separate title insurance agents while your case is being processed. More than half of TSG’s employees have a title insurance license which allows our clients to enjoy the benefits of working with competent, experienced and well trained professionals. With licensed underwriters in each office, we are able to identify and solve title issues in a timely fashion allowing settlements to proceed on schedule. From start to finish of your transaction, our meticulous staff provides a level of service that is equal to none.
DO I NEED A SURVEY?
A current House Location Survey is highly recommended. A House Location Survey shows the description of record, the relationship of physical improvements to the property lines and identifies any encroachments. Due to the changes to the Real Estate Settlement Procedures Act effective January 1, 2010, The Settlement Group, Inc. no longer automatically orders a House Location Survey on behalf of our clients. Take a moment to review this informational packet provided by Dominion Surveyors, Inc. You are welcome to direct any questions to Dominion Surveyors, Inc., and of course you should feel free to call us to discuss this important decision.
We will confirm with purchasers if they wish to obtain a House Location Survey and order it as requested. Once obtained, our title underwriting staff reviews each survey as they prepare the title insurance commitment for the property. This allows them to set out any exceptions to coverage that may be necessary because of the location of improvements on the property.