Purchasing a new home is a major decision. The closing should be a pleasant experience, but all too often the excitement can turn to anxiety with all of the unfamiliar details that encompass the real estate proceedings. The process involved in completing a residential real estate transaction can be very time-consuming and extensive, involving many details and documents. Attention must be paid to every detail; if something is overlooked, the entire transaction could become delayed, which is why residential transactions are one of our main title insurance services we provide.
Whether you are buying your first home or you are a seasoned home buyer, the process can be confusing. For that reason Skyline Title has compiled a list of ideas for you to consider. See down below for some of the most frequently asked questions.
Refinance and Home Equity Transactions
When a homeowner decides to refinance their home to benefit from a lower mortgage rate, shorten the term of the loan, or to do a cash-out refinance for home improvement purposes, the homeowner will need to choose a lender and a title company to provide the title insurance services necessary for the new loan. Skyline Title is here to provide the necessary Title and Escrow Services for obtaining this new financing. Our team has years of experience providing settlement services to homeowners and lenders. It is our goal to provide the best services possible. Please feel free to contact us if you have any questions about the home refinancing process.
Skyline Title is a title company with the strength, knowledge and dedication to efficiently facilitate all commercial real estate transactions. It is Skyline Title’s job to close the transaction without hassle. We see our job as this: using our knowledge and experience to find innovative ways to complete transactions others might give up on and provide you with the title insurance services you need. With leading edge technology and extensive commercial real estate transaction experience, you can sit back, relax and let Skyline Title take care of the work for you.
Frequently Asked Questions
Purchasing a new home is a major decision. The closing should be a pleasant experience, but all too often the excitement can turn to anxiety with all of the unfamiliar details that encompass the real estate proceedings. The process involved in completing a real estate transaction can be very time-consuming and extensive, involving many details and documents. Attention must be paid to every detail; if something is overlooked, the entire transaction could become delayed. That is why we provide the Title Insurance Services listed above and more.
To help you with any initial questions you may have, please read through the following frequently asked questions. If you don’t find the answer you’re looking, don’t hesitate to contact us.
Title insurance protects property buyers and mortgage lenders against defects or problems with a title when there is a transfer of property ownership. If a title dispute arises during the sale, the title insurance company may be responsible for paying specified legal damages, depending on the policy. Issuing title insurance is a two-part process. First, the title company or attorney researches records to make sure there are no undisclosed heirs to the property, unpaid taxes, pending legal action, errors, fraud or other problems with the deed. Put simply, the title must be clean, verifying that the seller really does own the property and is free to sell it.
When you buy a home, or any property for that matter, you expect to enjoy certain benefits from ownership. For example, you expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to cover these rights you bargain for.
Having no title insurance exposes transacting parties to significant risk in the event a title defect is present. Consider a home buyer searching for the house of their dreams only to find, after closing, unpaid property taxes from the prior owner. Without title insurance, the financial burden of this claim for back taxes rests solely with the buyer. They will either pay the outstanding property taxes or risk losing the home to the taxing entity.
The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, then the coverage continues in effect for so long as you have an interest in the covered property. If you should die, the coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues.
- A clear title is necessary in any real estate transaction. Title companies must do a search on every title in order to check for claims or liens of any kind against; the subject property, the sellers, and buyers.
- A title search is an examination of public records to determine and confirm a property’s legal ownership and to find out whether there are any claims on the property.
- Title insurance protects both real estate owners and lenders against loss or damage occurring from liens, encumbrances, or defects in the title or actual ownership of the property. Unlike traditional insurance, which protects against future events, title insurance protects against claims for past occurrences.
- An owner’s policy of title insurance insures against the following defects in title to real property;
- Ownership by another party
- Incorrect signatures on documents, as well as forgery and fraud concerning title documents
- Defective recordation
- Restrictive covenants
- Encumbrances or judgments against property, such as outstanding lawsuits or liens
Any number of title issues may arise, even after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner’s Policy include defects in title caused by:
- Forgery and impersonation
- Lack of competency, capacity or legal authority of a party
- Undisclosed (but recorded) prior mortgage lien
- Undisclosed (but recorded) easement or use restriction
- Erroneous or inadequate legal description
- Lack of a right of access
- Deed not properly recorded
- Unreleased mortgages
- Refusal of a potential purchaser to accept title based on the condition of the title
- Unpaid judgments and liens
- Undisclosed or missing heirs
- Mistakes in recording or indexing legal documents
A title commitment, and in certain regions termed a preliminary title report, is not a title insurance policy but is merely the title company’s promise to insure the transaction after certain conditions/requirements are met. The title commitment contains the same terms, conditions, and exclusions that will be in the actual insurance policy. The title commitment discloses to all parties connected with a particular real estate transaction all the liens, defects, and burdens and obligations that affect the subject property.
In a typical closing, the seller would purchase the Owner’s Title Insurance Policy. If the buyer is receiving a loan from a financial institution the buyer would be responsible for the Lender’s Title Insurance Policy.
A bond, deed, or other document kept in the custody of a third party and taking effect only when a specified condition has been fulfilled.
An easement is a property right to use another’s land for a specific limited purpose. In other words, when someone is granted an easement, he is granted the legal right to use the property, but the legal title to the land itself remains with the owner of the land. Most commonly, easements are granted to utility companies to run power lines and cable lines. However, you may also grant an easement to your neighbor if your property is in the way of his access to a road, or to anyone else who needs to have a legal right to access your land.
An easement is a “nonpossessory” property interest that allows the holder of the easement to use property that he or she does not own or possess. An easement doesn’t allow the easement holder to occupy the land or to exclude others from the land unless they interfere with the easement holder’s use. In contrast, the possessor of the land may continue to use the easement and may exclude everyone except the easement holder from the land.