Q:  What is title insurance and what does a title company do?

Title insurance is a contract of indemnity.  The title insurance premium is a one-time paid fee.  A title insurance owner’s policy protects the ownership of your most important investment – your home.  Your policy covers the insured for the value of your home for as long as you have an interest in the property.  If a challenge is made to your title, you as the insured can file a claim under the policy to protect your ownership.   Remedies under the policy include paying a claim under the terms of the policy up to the policy amount and providing legal defense for the insured

Q: Who picks the title insurance company and who gets insured?

Seller customarily pays for Buyer’s Owners Policy.

Buyer pays for the Lender’s Loan Policy.

Q: What is a closing?

The official ceremony in which all closing documents are executed including, deeds, settlement statements and all loan documents.

Q:  What is a HUD-1 Settlement Statement and what does it do?

A HUD-1 is the Federal government form required for certain real estate transactions which balances the transaction to the penny.  The title company prepares the HUD-1 Settlement Statement.  This is an important document at your closing!  Read it very carefully and review all charges.

Q:  When is my closing over?

When the closing is finished all documents are signed and the transaction has disbursed.

About the author:

John D. Shepard, is Vice President/General Counsel at Reputation First Title Agency.  He has over 18 years of experience in title insurance in many roles – including abstractor, title examiner, claims attorney, underwriter, branch manager, and agency sales manager.  He can be contacted at or by phone at 734.432.0100.


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