Residential Title Insurance 

Residential Title Insurance in most cases required by the lender to protect the lender against loss resulting from claims by others against your new home. In most states, a title insurance company offers the title insurance which performs the title search, issuing the commitment to the lender and closes the loan. Other services Chairman Title performs are getting the mortgage payoffs, evaluating trust documents, POA documents and setting up the closing with the borrower.

Listed below are some concerns regarding the issuing of title insurance: 

Ø  Owner’s Policy:  A lender’s title insurance policy does not protect you. Similarly, the prior owner’s policy does not protect you. If you want to protect yourself from claims by others against your new home, you will need an owner’s policy.

Ø  Choice of Title Insurer:  Under RESPS, the seller may not require you, as condition of the sale, to purchase title insurance from any particular title company. Generally, your lender will require title insurance from a company that is acceptable to it.

Ø  Review Initial Title Report:  In many areas, a few days or weeks before the settlement or closing of the escrow, the title company will issue a “Commitment to Insure” or a preliminary report or “binder” containing a summary of defects in title which have been identified by the title search, as well as any exceptions from the title insurance policy’s coverage.

Ø  Coverage & Cost Savings:  To save money on title insurance, compare rates among various title insurance companies. If you are buying a newly constructed home, make certain your title insurance covers claims by contractors. These claims are known as “ mechanics liens” in some parts of the country.

Ø  Property/Real Estate Survey:  Lenders or title companies often require a real estate survey to mark the boundaries of the property. You may be able to avoid the cost of a complete property survey if you can locate the person who previously surveyed the property and request an update.