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Frequently Asked
Questions
Who Is Covered By Title
Insurance?
The
Lender:
Title Insurance covers
the outstanding balance
on mortgage for the
lender.
The Buyer:
When acquiring a
property, it's a good
idea to have insurance,
since it will give you
protection in case
there's a title claim
against your home.
What Is Title Insurance?
Title
Insurance is a contract
to protect an owner
against losses arising
through defects in the
title to real estate
owned. If a title is
insurable, the company
guarantees the owner
against a loss due to
any defect in title or
expenses in legal
defense of the title,
pursuant to the terms of
the policy. The process
of examining all
relevant records to
confirm that the seller
is the legal owner of a
property and that there
are no liens or other
claims outstanding.
When Is A Title
Defective?
There are
many possible causes of
title defects that no
examination can
disclose. That is
because they have never
been recorded and thus
do not appear in the
abstract. A title
insurance policy
protects the owner
against all these hidden
risks; those listed
below and many more:
Fraud.
False claims of
ownership, forged deeds,
wills, signatures,
conveyances,
instruments, false
representations, false
records of all sorts,
illegal acts of
trustees, guardians,
administrators and
attorneys.
Human Error.
Errors in copying,
indexing, recording;
errors by
administrators,
executors, trustees,
guardians, and
attorneys; destruction
of records.
Improper
Deeds and Wills.
Deeds by persons of
unsound mind, minors,
deeds delivered after
death of without the
grantor's consent;
invalid, suppressed
erroneous wills, missing
heirs, unsettled
estates.
Liens and
Other Rights.
Liens for unpaid estate,
income and property
taxes, mechanic's liens;
unpaid mortgages;
irregular court
proceedings, defective
foreclosures; sewer and
water assessments.
Where Do I Get
Title Insurance?
Contact
Solution Abstract
to quickly,
efficiently and
accurately process your
commitment and policy.
Why Is Title
Insurance Important?
It
provides you with
protection of your
property, and it can
save you money, time,
trouble -- even your
home. When a person buys
a car or consumer goods,
they seldom need to know
whether the former owner
is married, single or
divorced, whether they
have paid their taxes or
are involved in a
lawsuit. But when a
person buys a home, it
is necessary to have all
the information and much
more. For a while he or
she may own the
property, others may
also have rights or
prior claims in the same
real estate.
How Much
Does Title Insurance
Cost?
The
one-time premium is
directly related to the
value of your home. It
is a one-time only
expense, paid when you
purchase your home, yet
it continues to provide
complete coverage for as
long as you or your
heirs own the property.
What are the new
recording procedures for
New York City closings?
Beginning July 5, 2004,
all Real Property
Transfer forms must be
created electronically
through ACRIS, {New York
City's
Automated City Register
Information System}.
As a courtesy to help
our clients prepare the
forms in draft form,
Solution Abstract will
continue to provide the
forms on it's website.
Please note, that the
only forms acceptable to
the County Clerks in New
York City are those
prepared on the City's
ACRIS system. You can
visit the ACRIS website
by clicking
here.
Can I Receive Title
Reports via Email?
Yes, you can receive
your title reports from
Solution Abstract in
three different ways
fax, e-mail or overnight
mail. For e-mail, using
the latest in high-speed
scanning technology, we
prepare your report in
industry-standard
pdf
format that can be
viewed and printed with
Adobe Acrobat Reader
(the same software you
use with International
Title Forms) and send it
to your email account.
Be sure to let us know
your email address and
that you would like to
receive your title
reports via email.
How does a title
company obtain the
information to
protect your
property?
A title
insurance policy
recognizes and
eliminates risks
prior to closing,
rather than assuming
risk on a
probability or
actuarial basis.
Title companies
perform a thorough
and detailed search
in the public
records to establish
rights to and in the
property and to
limit possible
claims to it.
What happens if
there is a claim?
Title Insurance
is the vehicle
through which real
estate transactions
are completed with
the protection from
legal and financial
claims of others.
Title Insurance
assures that any
claim will be
defended and, if
warranted, paid.
There are a number
of title problems
that could occur
from error to
outright fraud.
Fortunately, there
is a universally
accepted means of
dealing with title
issues.
How much
value does Title
Insurance add to
the marketplace?
Title Insurance
is a significant
part of the
economic
well-being of
the
marketplace.
The fuel that
sustains the
refinance engine
is the buying
and selling of
mortgages on the
open market.
That market,
along with
government-sponsored
entities such as
Fannie Mae and
Freddie Mac,
provides
liquidity for
the real estate
finance
industry. Title
Insurance
enables lenders
to convert
long-term assets
into cash, which
can be
reinvested into
new mortgages.
There are tens
of millions of
mortgages
outstanding
totaling
trillions of
dollars. These
mortgages can be
safely traded,
invested and
reinvested again
because Title
Insurance offers
a secure and
reliable
protection
against claims
of others or
outright defects
in ownership or
undisclosed
liens. With a
Title Insurance
policy in place,
an investor is
freed from these
concerns and the
transfer of
interest is
easily
completed.
Who benefits
from Title
Insurance?
Title Insurance,
in one form or
another, has
been in
existence for
well over 100
years. Title
Insurance
protects
homeowners and
lenders alike.
Title Insurance
facilitates the
easy transfer of
ownership
interests and
provides
assurance in the
mortgage
transfer
industry. Title
Insurance holds
all components
of the real
estate
transaction
firmly together
in an industry
that is socially
significant and
economically
substantial.
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