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Why a title company is needed
By GAY MARSH (ST. AUGUSTINE) - Let's take a look at Title Insurance. I have asked Dorothy Burr from Independent Title of St. Augustine, to give us an overview on this topic. The following is her information:
When a title company receives an application for title insurance, their initial area of responsibility is to abstract the public records in order to examine information surrounding the title to the property being purchased. This title investigation (or search) is referred to as the Chain of Title. The Chain of Title will reveal the following: 1. That the contract seller of the property is, in fact, the legal owner and that all owners are parties in the contract. 2. The presence of open mortgages, judgements, or similar liens which must be satisfied before a clear title can be conveyed to you. 3. Existing restrictions, easements, or rights-of-way for roads, public utilities, etc., which may limit your right to the use of property, or grant rights to others who are not owners. 4. The status of property taxes and other public or private assessments. Once this title search is complete, the information is supplied to your lender and attorney in the form of a Title Commitment. The title agency will then process your file calling to obtain payoffs, and to verify any other outstanding liens on your property that may appear on the title commitment. The title agent will coordinate with the buyer's Realtor to obtain a termite report, survey, and homeowner insurance information which will be required by the buyer's lender. All of this information is coordinated to reach the goal of the closing date. The title agent will gather all this information and prepare appropriate documents for the closing date, and will work closely with the lender to obtain bank documents required for closing. After closing, the owner's Title Insurance Policy is issued and will protect you against hidden title defects such as fraud, forgery, incompetency, or similar matters which are not revealed by the public records. If you have any additional questions, you may contact Dorothy Burr at Independent Title of St. Augustine, 904-797-5077. Gay Marsh, Realtor/Broker, is with Premier Property Realty Group in St. Augustine.
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The purchase of a home may well prove to be the largest financial investment you make in your lifetime. Therefore, the importance of fully protecting such an investment cannot be overstated. When you sign a contract to purchase your home and apply for a mortgage, your lender is going to require title insurance.