Title is the
complete ownership to a piece of property. It is a historical record
of that property in terms of its previous deeds, mortgages,
easements, judgments, or other liens.
What is
a Title search? A Title search is an investigative search
of all available documents such as deeds, mortgages, wills, tax
records, court judgments, divorce decrees and liens , and is
conducted to determine that the property you are about to buy has
clear Title.
Is Title
the same thing as a Deed? No. The Deed is a document
executed by the seller which transfers the Title, the right of
ownership, to you, the purchaser. However, that ownership may have
some defects such as a Title that is not clear.
What is Title Insurance? Quite simply, Title Insurance is peace of mind. It is an insurance policy that protects your property and assures you that the property you are about to buy will rightfully belong to you. Because of this, Title insurance is essential.
Why Do I
need Title Insurance?
First
of all, if you are obtaining funds from a lender to purchase your
property they will require you to insure against title defects.
Furthermore, even a thorough and diligent Title
search can fail to uncover a Title defect. These defects can include
but are not limited to errors or omissions in deeds, forgery, liens
for unpaid taxes, mistakes in examining records, liens by
contractor’s, even undisclosed heirs. In cases such as these the
Title insurance will cover costs and legal fees connected with
defending against any Title claim. Furthermore, you are insured
against claims for as long as you own the property.
What is the difference between Title Insurance and homeowners’ insurance?
Homeowner’s insurance typically provides protection against theft, accidental damage, or natural disaster. While these types of loss can certainly be substantial, losses from a defective title could be devastating. A home destroyed by fire can be rebuilt; but if the title to the land fails, without title insurance the homeowner could lose the right to inhabit the house as well as the land it occupies.
Is a property survey required?
In most cases your mortgage company will require you to have a survey done for the property. This survey will be ordered by the Title company.
How much does it cost? A one time premium is paid at closing. Insurance premiums and the fees Title Companies can charge are regulated by the State Government her in New Jersey.
Do I need a Lawyer? If you are purchasing and a real estate professional tells you, “You don’t need an attorney,” you should ask yourself why someone who is supposed to be on your side would suggest you forego professional legal representation to protect your interests. Purchasing property will be one of the biggest investments you will make and as such needs to be treated respectfully. An attorney comes on board as someone who has only your interest in mind.
On the other hand, if you are refinancing a property you own, a Title Agency can conduct that process for you and a t a lower cost.
If you did not find the answer to your specific question you can Ask the Title Guy
79 Hudson Street, Suite #505, Hoboken, NJ 07030 (201) 683-8300
