What is “Title”?
Title is a collective term which encompasses a history of all transactions shown in the public records affecting a particular tract of land; taking into account all previous ownership and transfers. In essence, “Title” comprises your legal rights to own, control and transfer a particular piece of land.

In order to legally transfer real estate, a title search must be performed. Absent specific exceptions, a prospective owner and their Lender will require that the title be determined as clear or free of defects or encumbrances.

What is a “Title Search”?
A title search is a detailed examination of the public records concerning a property; essentially a “history lesson” of all actions affecting a given piece of real property. The public records are comprised of deeds, court records, property and name indexes, and many other public documents.

What is the purpose of performing a Title Search?
The purpose of the title search is to verify the Seller's right to transfer ownership of the property involved in the real estate transaction, and to discover any claims, defects or encumbrances the property may be subject to at the time of the proposed transfer of ownership and/or refinance.

A properly performed title search will also show any existing liens and other restrictions upon the property. Among these are unpaid taxes, unsatisfied mortgages, judgments against the Seller and restrictions limiting the use of the land.

Since land is permanent, its usage can change over the years. This is particularly true since a landowner can transfer not only the entire property, but also various rights from the title such as mineral, water or utility rights. Even if the land is vacant when you buy it, the property may still have an undisclosed history.

It is thus always necessary to first perform a title search to determine if any defects or encumbrances are outstanding and to clear those that you or your Lender do not accept.

What is a “Title Defect”?
A title defect is something missing from the title, for example, an undisclosed heir from a previous owner who could make a claim on the land. An encumbrance is a claim made upon the land but not by the landowner. For instance, your local power company may have an easement for a power line that will serve your house. If you are borrowing money to purchase land, your Lender will require your title to be cleared of any outstanding defect or encumbrance before the land is transferred.

Are there any “Title Defects” that a title search will not reveal?
Yes. There are always some “hidden hazards” that even the most diligent title search may not reveal. These defects include clerical errors in the records, defective deeds, mental incompetence of parties to prior transactions, confusion due to similar or identical names in the public records, and both negligent and intentional actions of a prior owner; including fraud, forgery, and incorrectly stating one’s marital status, thus resulting in a possible claim to the property by a legal spouse. These defects can arise after you have purchased property and can jeopardize the right to ownership.

What is “Title Insurance”?
Title insurance is your policy of protection against loss if any of these “Title Defects” - even a "hidden hazard" - results in a claim against your ownership. There are two types of title insurance policies: a “Lender's Policy” and an “Owner's Policy.”

The “Lender’s Policy,” as its name implies, protects your mortgage Lender and covers the amount of the loan made on your behalf to purchase the property. A “Lender's Policy” usually does not reflect or cover the full property value. A “Lender’s Policy” is ordinarily required as a part of a real estate transaction.

An “Owner's Policy” protects you, the landowner, and your family/heirs from a future title claim and is generally considered optional. Unlike a “Lender’s Policy,” an “Owner’s Policy” can cover the full property value at the time of your purchase. Because a title policy is considered insurance, an “Owner’s Policy” ensures that if a claim is made against your title in the future, the title insurer must not only pay any and all costs associated with defense against the challenge; it must also reimburse you, the landowner and policyholder, for any reduction in the value of your property if it is unsuccessful in that defense.

Why do I need Title Insurance?
A title insurance policy provides coverage from the time of its effective date back to the origin of title. If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense - and pay all court costs and related fees. Essentially, the title insurance company will defend the title for you and, if you are no longer alive, your heirs.

If an adverse title claim proves valid, and in accordance with the terms of your policy, you or your heirs may be reimbursed for your actual loss up to the face amount of the policy.

Can I decline having Title Insurance?
The answer, quite simply, is “Yes and No.” As stated above, there are two types of title insurance: a “Lender’s Policy” and an “Owner’s Policy.” Almost any mortgage Lender will likely require that a “Lender’s Policy” of title insurance be issued upon the property being purchased. As previously noted, however, the “Owner’s Policy” is optional and a purchaser could theoretically choose to decline any owner's title protection.

When weighing this choice, it is important to remember that only title insurance protects the owner, their family and their heirs against hidden hazards, and only title insurance reimburses the owner for legal expenses related to the defense of claims that affect the value of the property. Given the typical small, one-time premium difference between only obtaining the required “Lender’s Policy” and obtaining a “Simultaneous Issue” of both a “Lender’s Policy” to cover the mortgage loan amount and an “Owner’s Policy” to cover the full property value, the choice is often quite obvious. If you should have any questions in this regard, SettlementOne is here to explain your options, the costs of each option, and provide its recommendations with regard to the coverage you need.

Where can I get Title Insurance?
You can obtain title insurance from any licensed title insurance company or its agents operating in your state. When choosing a title insurer, it is important that you look for a company with expertise and experience, as well as the financial strength to protect you should a claim arise. SettlementOne is here to service all of your title insurance needs, as is our title insurance underwriter, LandAmerica Commonwealth.
Founded in 1876 in Philadelphia, Pennsylvania, LandAmerica Commonwealth is the nation's oldest title insurance company and holds an A Double Prime Financial Stability Rating® from Demotech, Inc., the title insurance rating firm's highest ranking for stability and substantial net worth, an A+ Financial Strength rating from Duff & Phelps Rating Company, and an A counterparty credit and financial strength rating from Standard and Poor's

If the existing property owner already has Title Insurance do I still need to have a Title Search performed?
A title policy insuring your Seller does not protect you. Also, many things could have happened to the land since that owner's policy was issued. Your Seller could have a mortgage, a home equity loan, judgments or unpaid taxes that would not be covered in the Seller's title policy.

How much will Title Insurance cost me each year?
The great answer here is, “It Won’t.” You pay for an Owner's Policy of title insurance only once, and there are no monthly premiums. Typically, the one-time premium charge is paid for at the closing of your real estate transaction and can be incorporated into the amount of your mortgage loan.

While charges vary in different sections of the country, Title Insurance probably costs a lot less than you think. Generally, the total cost of title insurance (including search, examination and related services) amounts to less than one percent of the cost of the property.

How long does my Title Insurance coverage last?
For as long as you or your heirs retain an interest in the property and, in some limited cases, even beyond.

I’ve decided about Title Insurance and am ready for Closing. Who needs to attend the actual settlement?
At a refinance settlement, usually only the borrowers are present, along with the SettlementOne attorney or settlement officer who is conducting the transaction. In some rare instances, your mortgage broker or loan officer might also be present to ensure you do not have any questions relating to the mortgage loan program.

When your closing transaction involves the purchase of new property, the typical attendees are the Seller(s), purchaser(s), their own respective real estate agents, and the SettlementOne attorney or settlement officer who is conducting the transaction.

All settlement transactions at SettlementOne will be conducted by one of our experienced attorneys or licensed settlement officers. If any particular attorney or settlement officer is desired for your transaction, please advise SettlementOne at your earliest possible opportunity to avoid scheduling conflicts.

What should I bring with me to my settlement?
A requirement at all real estate transactions is that the Borrower(s) and, if this is a purchase transaction, the Seller(s), must present a valid government issued picture ID, such as a Driver's License, Passport, or Military ID. If you are refinancing or purchasing a new home, you may also be required to bring additional funds with you to closing. All such funds must be in the form of “certified funds,” such as a cashier's check, teller's check or money order. Cash or personal check is only acceptable in amounts under $1,000. If you are the Seller, you should also make sure to bring with you all house keys, garage door openers, alarm system codes, garage pass-keys (if a condominium), and any warranties and/or repair documentation. SettlementOne will contact you prior to closing if additional materials are needed at the settlement table

What happens if I am unable to personally attend my settlement?
At SettlementOne, we realize that there are circumstances that might prevent a necessary party from attending the settlement in person. As part of our continuous effort to make your settlement transaction as seamless and convenient as possible, SettlementOne may be able to prepare, for a modest fee, a “Power of Attorney” for your execution before a Notary Public.

A "Power of Attorney" is a legal document that enables you to designate another person, called the “Attorney in Fact”, to act on your behalf as long as you do not become disabled or incapacitated. Permissible actions that can be taken by the “Attorney in Fact” on your behalf include the execution of legal documents, such as those involved in a real estate settlement transaction. If you believe that your circumstances might require utilization of a “Power of Attorney,” whether due to business travel or other factors beyond your control, please contact SettlementOne immediately. We will then explore the particulars of your real estate transaction to determine whether execution of a “Power of Attorney” is an option in your case.

How much in advance of my settlement will I be apprised of the amount of money I will need to bring to closing?
As with all settlement companies, SettlementOne must rely on third parties to provide us with the Lender fees, final loan amounts, closing instructions and other Lender-related monetary figures for your particular settlement. These “third parties” include, quite obviously, your Lender or mortgage brokers. As such, while we will have all tax and settlement fee figures available well in advance of your actual closing date, SettlementOne will not be able to furnish a final figure for the amount you will need to bring to closing until the day before, or, sometimes, even the day of, settlement.

Based on these facts, it is always best to slightly “overestimate” the amount you will anticipate bringing to closing; especially since these funds will need to be “certified” and obtained from your bank or another financial institution. If for some reason you should bring too much money to settlement, SettlementOne will refund these excess amounts to you immediately upon completion of the closing. The most important thing is to always bring enough money to conclude the transaction at the appointed time.

I know that I will owe additional money at my settlement. How will I need to pay these additional funds?
All such funds must be in the form of “certified funds,” such as a cashier's check, teller's check or money order. These funds should be made payable to the order of “SettlementOne Title & Escrow, LLC.” Cash or personal check is only acceptable in amounts under $1,000.

How long will the actual settlement take?
As most people can guess, the actual time it takes to complete a given settlement can vary greatly based on a number of factors. As a general “Rule of Thumb,” however, a typical refinance transaction will take between 20 to 45 minutes. A purchase transaction will ordinarily take between 45 minutes to 1 1/2 hours.