Category Archive

 ”What is title insurance?”  and “why do I need title insurance?” are the most common questions we get around here besides the obvious “where is your restroom?” and “how long is this going to take?”  Title Insurance is a fairly complex subject that we hope to make a little more accessible in this five part report. We will cover the history and  fundamentals of the industry as well as explain how title insurance fits in to a real estate transaction. We hope you find this report helpful to you and your customers. By the way, the bathroom is down the hall and to the right.  

Part V: Cleaning up Some Loose Ends

      I think we covered just about everything in parts I-IV, but there are a few items I had floating around in my subconscious during this project that I wanted to include in this final edition of Title Notes.  First, I wanted to let you know that I appreciate you taking the time to read over the information presented in this report.  I realize that it seems like a lot of information, but just know that if you have a question about title insurance, please feel free to call me and I will be happy to share what I know with you. Of  course, it is just as likely that you have a question or even special knowledge about an aspect of title insurance that was not included in my report. I would love to see your comments either via email or at the bottom of the page.  Read the rest of this entry »

 ”What is title insurance?”  and “why do I need title insurance?” are the most common questions we get around here besides the obvious “where is your restroom?” and “how long is this going to take?”  Title Insurance is a fairly complex subject that we hope to make a little more accessible in this five part report. We will cover the history and  fundamentals of the industry as well as explain how title insurance fits in to a real estate transaction. We hope you find this report helpful to you and your customers. By the way, the bathroom is down the hall and to the right.  

Part IV: Weighing our Options: Policies, Coverage’s and Rates

In the world of title insurance, there is some variety in the types of policies and coverages available. There are two categories of Title Policy’s used in real estate transactions and they are defined by who is receiving the coverage. It is pretty easy to remember because their names give it away.  The lender’s policy covers the lender for the amount of the loan, which is usually less than the full property value. A lender’s policy would only be called into action if a defect in title was restricting the lenders ability to collect on their mortgage and/or foreclose to recover the unpaid portion of its loan. A lenders policy provides for loss and legal expenses for the lender only and provides no protection to the owner. The protection provided in a lender’s policy remains in effect for as long as the mortgage remains unsatisfied.  The owner’s policy protects the owners of the property and their heirs for as long as they hold title to the property. As with the lender’s policy, the owner’s policy provides for loss and legal expenses. Read the rest of this entry »

 ”What is title insurance?”  and “why do I need title insurance?” are the most common questions we get around here besides the obvious “where is your restroom?” and “how long is this going to take?”  Title Insurance is a fairly complex subject that we hope to make a little more accessible in this five part report. We will cover the history and  fundamentals of the industry as well as explain how title insurance fits in to a real estate transaction. We hope you find this report helpful to you and your customers. By the way, the bathroom is down the hall and to the right.  

Part III: Owner’s (and Lender’s) Manual

        Title insurance, like many forms of insurance must be underwritten in order to be issued. The underwriting process begins when we recieve a title request (also known as an order) and ends when we issue a policy.  In between, we will search and examine public records, establish conditions that must be met in order to issue a policy and then we will make sure that those conditions are satisfied. Read the rest of this entry »

 ”What is title insurance?”  and “why do I need title insurance?” are the most common questions we get around here besides the obvious “where is your restroom?” and “how long is this going to take?”  Title Insurance is a fairly complex subject that we hope to make a little more accessible in this five part report. We will cover the history and  fundamentals of the industry as well as explain how title insurance fits in to a real estate transaction. We hope you find this report helpful to you and your customers. By the way, the bathroom is down the hall and to the right.  

Part II: The Fundamentals of Title Insurance

What is Title?

Title is the evidence, of right, that a person or entity has to possess, occupy, own and use a parcel of real property.  A title can be looked at as a bundle of different rights and interests in real property.  Using a bundle of straws as an analogy, each straw represents a different interest in real property. One straw may represent possessory rights, one may represent a lender’s mortgage while another may represent mineral rights.  Though there may be several different interests in one parcel, all of those interests combine to form one title.  When you buy a home, it is important to have a firm grip on your bundle of straws.   Read the rest of this entry »

 ”What is title insurance?”  and “why do I need title insurance?” are the most common questions we get around here besides the obvious “where is your restroom?” and “how long is this going to take?”  Title Insurance is a fairly complex subject that we hope to make a little more accessible in this five part report. We will cover the history and  fundamentals of the industry as well as explain how title insurance fits in to a real estate transaction. We hope you find this report helpful to you and your customers. By the way, the bathroom is down the hall and to the right.  

Part I: The Origins of Title Insurance 

            The title insurance industry got its start in 1874  when the Pennsylvania legislature passed a law allowing the incorporation of title insurance companies.  This law was passed largely in response to the growing public concern in the wake of a court ruling that a purchaser of real estate, who lost his property to a prior lien holder,  had no legal recourse against a title searcher who mistakenly advised the purchaser that the property was free and clear of title defects.   Read the rest of this entry »