Title Insurance
Patty Bell & Company Realtors believe that owning land is one of the most precious values of freedom enjoyed in this country. One can buy it, sell it, invest in it, and trade it, as she/he sees fit.
Before purchasing a parcel of real estate, a buyer should always ascertain that the seller is able to convey a marketable title by making a thorough search of the public records regarding the property. The owner is generally required to produce documentary proof called “evidence of title.” One of the forms of title evidence is called “title insurance.” A title insurance policy is a contract by which a title insurance company agrees, subject to the terms of its policy, to indemnify (compensate or reimburse) the insured (the owner, mortgagee, or other interest holder) against loss sustained as a result of defects in the title other than those exceptions listed in the policy. The most common types of title insurance are the Standard Coverage Owner’s Policy and the Extended Coverage Lender’s Policy (Mortgagee policy). Patty Bell & Co., Realtors advises the consumer to consult the title company and their legal counsel about other policies that are available.
The steps required to produce a title policy and eventually close the sale of real estate property, though oversimplified, customarily look something like this:
- An order is taken:
A “real estate contract” (agreement to sell and purchase real estate) usually starts the process. Escrow is opened and a title order is placed.
- Tax check:
What taxes ore owed on the property? The County Assessor’s records are reviewed with the Court’s Real Estate computer records.
- Title search:
Copies of documents are gathered from public records: deeds, deeds of trust, assessments, judgments, liens, probates, divorce settlements, etc.
- Examination:
Verification of chain of title to the vested legal owner and review of all documents found in title search.
- Data processing:
Commitments, policies, and commitment supplements are typed.
- Closing settlement:
The Escrow Officer oversees the closing of the transaction and prepares the closing statement and accompanying documents. Parties sign closing documents. Documents recorded. Closing disbursements made.
This important process involving close scrutiny of all public and court records, property tax records, survey and legal descriptions, and liens is considered a process of “risk elimination” and is followed to determine the insurable interest and what visible title defects will have to be cleared before title is transferred. It is the policy of Patty Bell & Co., Realtors that title insurance is purchased on all transactions which involve the transfer of title.
