Resources

FREQUENTLY ASKED QUESTIONS 

 

What is a deed?

A deed is the evidence that a person or entity has to show ownership of real property.  However, it is possible that someone other than the owner on the deed has a legal right to the property. An example would be a tenant living in the property with permission from the owner.  

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I'm about to purchase a house; do I need title insurance?

Yes! Title insurance is a means of protecting yourself from potential financial loss in the event that problems may develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance may pay the cost of defending against any potential claim.

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What can make a title defective?

Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These hidden "defects" are dangerous indeed because you may not learn of them for many months or years after closing. Yet they could force you to spend substantial sums of money on a legal defense, and still result in the loss of your property.

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A few of the more common hidden risks that can be an issue with your title, would be the following:

• False impersonation of the true owner of the property

• Forged deed, release or wills instruments executed under invalid or expired power of attorney

• Undisclosed or missing heirs mistakes in recording legal documents

• Misinterpretations of wills by persons of unsound mind

• Deeds signed by minors

• Deeds signed by persons supposedly single, but in fact married

• Fraud

• Liens for unpaid estate, inheritance, income or gift taxes, etc.

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The lender requires title insurance; isn't that enough?

Not necessarily. There are two types of Title Insurance. Your lender will likely require that you purchase a Lender's Title Policy. This policy only insures the financial institution, not the owner of the property. Most lenders require this type of insurance, and typically require the borrower to pay for it.

An Owner's Policy is designed to protect the buyer from title defects that existed prior to the issue date of your policy. Title issues, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy may cover the full cost of any legal defense of your title.

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How much does title insurance cost?

The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide coverage for as long as you own the property.

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What do I need to bring to closing?
You will want to have these items complete or in hand when you come to the closing:

Buyer:

• Buyer's copy of purchase agreement

• Cashier's check, if applicable, made payable to Pilger Title Co. for any funds needed for closing

• Proof of purchase of insurance for fire, casualty, flood, etc.

• Invoices for any unpaid taxes, utilities, repairs, or assessments, etc.

• Photo identification (passport, driver's license, or state-issued identification card)

Seller:

• Seller's copy of purchase agreement

• Invoices for any unpaid taxes, utilities, repairs, and assessments, etc

• Current mortgage payoff

• Bill of Sale/Title of personal property covered by the purchase agreement

• Any unrecorded instruments that affect the title

• Proof of satisfaction of any mechanics' liens, chattel mortgages, judgments, or mortgages that were paid prior to the closing

• Photo identification (passport, driver's license, or state-issued identification card)