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 firstname.lastname@example.org or by phone at 734.432.0100.