You’ve decided to purchase a home and hope to take possession as soon as possible. The terms have been agreed upon and all the financial arrangements have been made. But there’s one important detail remaining. Before the transaction can close, a title search must be made.

The most accurate description of TITLE is a bundle of rights in real property. A title search is the process of determining from the public record just what these rights are and who owns them. A title search is a means of determining that the person who is selling the property really has the right to sell it, and that the buyer is getting all the rights to the property (title) that he or she is paying for.

Buying a house is an exciting time. It can also be overwhelming. If important things can go unexplained – like title insurance – you might find yourself in a bind.  Factfinders and Foxxview want to help!

What is title?
An official document that proves that the owner is in lawful possession of the property.

What is a title search?
A title search is done by examining public records to look up the history of property ownership. You could do your own title search, assuming you know what to look for, but if you are getting a loan to enable you to purchase the property, the lender will require that a qualified third party do the title search. The title search shows not only limitations on the use of the property and rights others may have in the property, but also liens or monetary obligations that are outstanding against the property.

What is title insurance?
Title insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or the defects in the title to the property. There can many problems with a title that even a diligent and trained eye may not uncover during a title search. Title Insurance protects you if problems crop up anytime in the future.

How does title insurance differ from other insurance?
Insurance such as car, life, health, etc., protects against potential future events and is paid for with monthly or annual premiums. A title policy insures against events that occurred in the past of the real property and the people who owned it, for a one-time premium paid at the close of the escrow.

What does it cover?
Title insurance protects against claims from defects. Defects are things such as another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the actual policy.

Who needs it?
Purchasers and lenders need title insurance in order to be insured against various possible title defects. The buyer, seller and lender all benefit from the issuance of title insurance.

How is a title policy created?
After the escrow officer or lender opens the title order, Factfinders and Foxxview Title and Settlement begins a title search. A preliminary report is issued to the customer for review and approval. All closing documents are recorded upon escrow’s instruction. When recording has been confirmed, demands are paid, funds are disbursed, and the actual title policy is created.

What is escrow?
Escrow refers to the process in which the funds of a transaction (such as the sale of a house) are held by a third party, often the title company or Realtor in the case of real estate, pending the fulfillment of the transaction.

What are the policy types?
A standard policy insures the new owner/homebuyer, and a lender’s policy insures the priority of the lender’s security interest.

Factfinders Title & Settlement and Foxxview Title & Abstract are full service real estate closing, title, and settlement companies.