Title Services

Are you searching for a title company, but do not know where to begin? Here are a few questions that you might want to ask:

• How many transactions does the company complete each year?
• Is the company adequately staffed to complete my transaction in a timely manner?
• How up-to-date is the company with current federal laws and requirements?
• You can also contact your local BBB, state insurance department or state title association to see if they are members or can provide you with any further information about the company.

RE/MAX The Producers offers support to all of the involve parties - buyers, sellers, lenders and real estate agents. Our job is to coordinate all parties, while transferring money and property during a closing. When using the services of a title company, this process eliminates any risks that there are any claims, assessments, errors, or miscellaneous defects on the title when you purchase the property.

Some of the services provided by a title company include:

• Title Search - A title search looks at the records of the title to insure a clear, transferable title. We make sure that the title is free from liens, judgments and easements.
• Lien Search - The search records any outstanding monies due on the title such as lease payments or second mortgages. These must be rectified before the title is cleared for ownership.
• Title Insurance - This is a policy issued by a title insurance company protecting the property owner and your financial institution against any errors in the title search and any claims that should arise with the property. Typically the buyer, and split the cost of the title insurance policy.

There are (2) two different kinds of Title Insurance and Title companies may refer to their policies by different names:

• You have the right to choose.

  Most buyers don't know that you can choose which title company handles your purchase.

  Often your realtor makes the selection for you, but you should know that not all title companies are the same, and which one you choose can make a difference in your purchase. Choose the most trusted name in title insurance, First American Title.

  Title Officers, Searches & Insurance

  The title company plays several roles in the home buying process. Title officers:

  • Supervise the Closing/Settlement Process: As a neutral party, the title company manages the documents and funds that change hands as part of the purchase or refinance
  • Conduct Title Searches: The officer checks public records of ownership, sometimes going back decades, for clear evidence that the seller has the right to sell the property and collect the entire payment.

  • Title Report: (sometimes called a Commitment to Insure) a summary of the results of the title search. They check for:

    • Additional Ownership Claims: Other parties who might have an ownership interest in the property
    • Mechanic´s Liens: Claims for payment filed when the current owner refused to pay a contractor´s bill
    • County/State Liens: For unpaid property taxes
    • Zoning Ordinances
    • Easements: The right to use another´s property for a specific purpose
    • Pending Legal Action or Judgments
    • Restrictive Covenants: Legal limitations on aspects of the property´s use, such as size, type or style of buildings allowed to be added to property

  • Offer Title Insurance: To both lenders and buyers/owners.

    • Title Insurance: Protects the policy holder from disputes over the ownership of a property

      • Why Buy It?: Most insurance concerns something that happens in the future, but title insurance is about protecting you from events which occurred in the past.
      • Your Lender Requires It: If you are borrowing money from a financial institution to purchase the property, the lender will require you buy title insurance.
      • Potential Problems: Title companies report that 25% of transactions have some kind of defect (often called a cloud¹ on the title).
      • The problem could be as minor as an unrecorded easement, or as major as a husband selling joint property without his wife´s knowledge or agreement.
      • The wife can then challenge your ownership and you could lose the property, and all the money you spent on closing costs, moving, any improvements you've made, etc.

    • Lender´s Policy: The policy your lender requires you to buy protects the lender, not you the buyer. The lender wants to be sure that the property can be used for collateral for the mortgage, and that if some other owner pops up, that the insurance policy will cover both:

      • Attorney´s Fees: For the legal battle over ownership
      • Financial Loss: If they can´t recover the value of the loan because the property securing the mortgage belongs to someone else

      Review the Report: Even though it is designed to protect the lender, you can request a copy of the preliminary report that is prepared a few days or weeks before closing.

    • Buyer´s/Owner´s Policy: It can be a good idea to get title insurance to protect your interest in the property. If the title company makes a mistake, you could lose all of your equity in the property and be out the money for the legal fees as well.

    • How To Buy It:

      • Lender´s Policy: Your title officer will work with your lender to set up a policy with the appropriate coverage.
      • Buyer´s Policy: Talk to your title officer about what kind of policy makes the most sense for you.

      • Cost & Payment:

        • Who Pays: for the title insurance (either buyer or seller) varies from county to county, ask your title officer or real estate agent what the custom is in that area

        • Cost:

          • One-Time Fee: you only pay once, when the policy is issued, and the policy runs for as long as you own the property
          • Department of Insurance: in some states, the fees are set by the state´s Dept. of Insurance and are not negotiable
          • Agent: in other states, the rates are set by the insurance agent (title officer) and can be negotiated
          • Transaction Amount: in both cases the cost is based on the size of the transaction (per $1000)

          • Transaction Type: the cost is then adjusted based on the type of transaction:

            • Basic Rate: used for purchase transactions and based on selling price or mortgage amount
            • Re-Issue Rate: used when the seller can provide recent evidence of clear title (backtitle), this is usually cheaper than the Basic Rate
            • Refinance Rate: when you are the current owner and just refinancing your loan, usually this is less than the Basic Rate

If you have any questions, or would like more information about RE/MAX The Producers, click here or call us at 402-496-3700 for more information.