Title Insurance protects the home purchaser by helping guarantee legal and “marketable” title to the property being purchased. It is offered to both property owners (Owner’s Policy) and lenders (Loan Policy).
The Owner’s Policy is purchased for a one-time fee at closing and is typically issued in the amount of the sales price. This Owner’s Policy protects against future losses arising out of events that may have happened in the past. This policy serves as a written guarantee that your underwriter will undertake, at its own expense, the defense of your title in all legal actions or proceedings alleging title to be other than as insured.
The Loan Policy, which is required by most lenders, is purchased for a one-time fee at closing and is based upon the loan amount. To protect against risk, a lender will require assurance that the title to the property is clear; and this is done through the issuance of a loan policy. The lender’s policy covers the lender only, while the buyer is unprotected without the issuance of a separate Owner’s Policy.
A title search is conducted in the land records in the county or city where the property is located. The searcher will examine the records to first determine the name(s) of the property owner(s). The title search also identifies any mortgages, liens, unpaid taxes, or judgments that affect the property. The title search will also show restrictions, covenants, easements and any leases affecting the property.
The title commitment is issued by the title company as a promise to issue a title policy to the buyer or lender after the closing as long as the requirements of the commitment are met. The commitment is issued before closing while the actual title policy is issued after closing.
The commitment will list information regarding the property owner(s), the legal description, and matters revealed by the public record that affect the property. There will also be a Requirements section setting forth items that must be addressed or documents that must be provided before issuing the final title policy.
There are different types of title insurance policies available to purchasers and lenders. Generally speaking, the title industry offers two types of title insurance policies: a standard and an enhanced policy. The enhanced policy will offer some additional coverage for an increased cost. Questions regarding coverage and costs should be discussed on an individual basis with Fortified Title. Please see this chart for a comparison between standard and enhanced title insurance.
Fortified Title is currently licensed in North Carolina and South Carolina and can assist with transactions in every county in these states. We believe in being as flexible and accommodating as possible in order to best serve our clients.
Fortified Title, LLC
21631 Ridgetop Circle
Sterling, VA 20166
ph : 703-955-4417
fax : 703-738-7890