Question Submitted 1/14/2013

If there is an exception on the Title Commitment and it is not listed on the short form lenders title policy, is the lender covered? Or since it is listed on the commitment, can the title insurer state that it was disclosed (even though the title insurer left the exception off of the final lender's policy)? For example, an exception for a line of credit is on the Commitment but it is not on the final title policy. If the home were to be foreclosed on because the borrower quit paying on their line of credit, would the title insurer have to cover my company in full because it was not listed as an exception on the title policy?

BBB's Answer:

Below is some basic info on Title Commitment. You may want to contact your insurance agency with specific questions. 

 

When you buy a home, in most cases you will be required to obtain title insurance. Title insurance protects your legal ownership of the property you buy. The insurance policy will be subject to certain exclusions and exceptions. Prior to issuing the insurance, the title company will conduct a thorough search of public records to determine the exceptions to coverage, such as any liens or restrictions that affect ownership of the property.

For example, if the seller failed to pay property taxes, the government would have a lien against the property. The property could be seized and sold to pay off the seller’s back taxes. If you were to purchase the property without knowing about the unpaid taxes, you could end up having to pay the back taxes yourself or risk losing the property.

When you purchase title insurance, the insurance company informs you of any outstanding liens so that you can require the seller to satisfy the liens before you close.

Prior to your closing, the title company will issue a commitment for title insurance. This commitment will indicate:

The commitment for title insurance is not the actual policy, but it guarantees that the policy will be issued if conditions specified in the commitment are met. In almost all real estate transactions, separate title policies will be purchased for the lender and the buyer.As the buyer, you would typically purchase the lender’s policy, which covers only the amount of the loan. The buyer’s policy — which insures you, the buyer — is for the full sales price and it is often paid by the seller.

 

Question Submitted 1/16/2013

Who should pay for the title insurance on a commercial policy?

BBB's Answer:

I believe this is negotiable. 

Question Submitted 1/16/2013

If a title company does not properly research property taxes owed, then the seller gets hit with an escape assessment that was not handled in closing, will title insurance cover this mistake? My situation involves a trustee, and the death of the first trustee who set up the trust, then the death of the first successor trustee. I am facing a reassessment going back to the first death. This all should have been researched during closing. Thank You

BBB's Answer:

You will have to contact your attorney with this specific question. 

Question Submitted 2/7/2013

Is there a time limit the title insurance company has to resolve a problem with the title? We bought our house 5 years ago went to sell and found out there was a problem with title. It has been 8 months now and they stil haven't resolved problem and we can't afford that mortgage and our house rent! Do we have any more options??

BBB's Answer:

I am not sure if a time limit is stipulated on this or not. I would check with the attorney you are or were working with to sell the house. 

Question Submitted 2/9/2013

My mother passed away and her home is in active foreclosure. I found a title insurance policy, Does this cover or protect the esatate? I am the executor of the estate. Does it protect the home from auction sale? I am trying to do a loan modification.

BBB's Answer:

You would have to refer to the policy and review what it covers. Title Insurance typically provides protection against loss arising from problems connected to the title to your property. 

Question Submitted 2/21/2013

Does title insurance plus cover structural damage to foundation?

BBB's Answer:

A title insurance policy, in effect, provides an assurance that you really own the property you think you own. When you purchase title insurance, the protection you are buying is based on a title search of public records that traces the chain of ownership of the property involved, and includes a guarantee from the title company that the title is accurate as stated.

You will have to check the insurance policy to figure out exactly what it covers and does not cover. 

Question Submitted 3/6/2013

We were the first owners when we bought our house new in 2004.We refinanced in 2009 and are going to refinance again now because of lower rates. We are going through the same bank we refinanced with in 2009. There's never been any outstanding liens, never an issue or question about the title, never missed a payment, never had any kind of legal trouble. We have excellent credit ratings and scores. Our bank is including $601 for title insurance in our Estimate of Costs. Why are they charging us for that again and do we have to pay it? Thank you.

BBB's Answer:

I would check with your attorney and have him advise you on this. 

Comment Submitted 4/7/2013

What is a reasonable time frame after a closing that a title insurance policy is issued (policy written and filled with the title insurance company)? 4 days? 4 months?

Comment Submitted 4/11/2013

I REFINANCE MY HOUSE IN 2005 AND THE TITLE COMPANY ISSUED CHECKS TO CREDITORS I OWED MONEY TO. I DIDN'T CHECK MY CREDIT REPORT TILL NOW AND I FIND OUT THAT THE CHECKS THEY ISSUED WHERE NEVER SENT TO MY CREDITORS. NOW I CALLED THEM AND THEY SAID THEY DON'T KEEP TRACK OF OPEN CHECKS. THEY SAID THE MONEY IS IN THERE NON INTEREST BEARING TRUST ACCOUNT. THOSE ACCOUNTS BACK THEN WERE PAID IN FULL NOW THERE A NEGATIVE ON MY CREDIT REPORT OR A CHARGE OFF. WHAT CAN I DO? I WOULD HAVE NEVER KNOWN IF I DIDN'T CHECK MY CLOSING STATEMENT TO SEE WHAT CREDITORS WERE PAID. HOW MANY OTHER CHECKS ARE THE KEEPING FROM OTHER CLIENTS. I TOLD THEM EVERY MONTH YOU HAD TO CARRY THOSE CHECKS ON YOUR BOOKS.

Question Submitted 4/14/2013

In 1987 I purchased a lot with pool on same 1 3/4 acres, I purchased title Insurance. Now I want to sell..I am 78..and i find out I only own 1 1/5 acre. Here the deed dept at court house made a mistake..I already hired a lawyer, but he really doesn't tell me a thing. Will my title Insurance that I purchased in 1987 cover all this expense to have things corrected??????

BBB's Answer:

Your attorney will need to assist you with this. 1 2 3 4 5 6 7 8 Disclaimer:
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