What is Title Insurance?

For those who are not familiar with what Title abstracting, Title Reports, and Title Insurance are and why they are so important, Let me take a moment to provide a little insight.

Real Estate Title in the U.S.

Every piece of real estate in the United States has been bought and sold or conveyed in some manner numerous times since the original land patent was granted by the federal government.  In addition, easements, rights of way, and other restrictions can be encumbering them.  Furthermore, we will find a considerable number of liens, judgments, deeds of trust, and such, which may or may not have been released over the years.  

1. Title Abstractor

It is the responsibility of our Title Abstractor, to research what we call a complete chain of title.  This reports on every conveyance of title affecting the subject property and anything which may encumber the title to the property.  

2. Title Examiner

It is then the responsibility of our Title Examiner, to determine if anything reported there, will have an adverse effect on the quality of the title being conveyed or encumbered in the new sale.  

3. Title Officer

It is then the responsibility of our Title Officer to determine the extent of the effect and write a commitment to ensure the title based on the results of this report.  If there are title issues that must be resolved before the sale of the property, our Title Officer is also available to assist in resolving them.

4. Title Closer

Once the title issues have been cleared to close the transaction, all the necessary documents will be prepared and sent to our closing department.  We will then coordinate and facilitate the signing of the final documents.

5. Title Agent

After closing and after the new deed and/or deeds of trust or mortgage are recorded at the county recording office, our Title Agent will issue a Real Estate Title Insurance Policy.  This will insure the buyer for the amount of the purchase price and the Lender for the amount of the loan.