AmTrust Title Insurance Company is here to protect your investment. Our core function in the real estate transaction is to protect all parties involved - starting with you.
Title Insurance - You can count on it! The roiling recent past of the housing industry pointed up why lenders have always insisted on title insurance for their loans. You should do the same to protect your interest!
Your first line of protection against loss is an Owners Policy of title insurance and an Insured Closing Protection letter from AmTrust Title.
For additional consumer information provided by the American Land Title Association visit Home Closing 101 by clicking the image below.
Title Insurance 101 Q & A:
What is Title Insurance?
Title insurance policies are insured statements of the condition of title to real property, which indicate ownership (as indicated by public records) as well as outstanding liens, encumbrances, or other matters of record. Title policies also insure against certain matters not of public record, such as forgery and undisclosed heirs of prior owners. As part of the process of issuing title insurance, our agents search the county records, tax offices and municipalities to accurately state the condition of title prior to purchase.
What types of policies are available?
In general, there are two types of policies, Owner’s Policies and Loan Policies. In almost all instances Lender’s coverage is required. Owner’s coverage is designated as “optional”, but prudent buyers take advantage of the low cost of an Owner’s Policy issued together with a Loan Policy to protect themselves against very real risks. In many states, buyers must attest to the fact that they were offered an Owner’s Policy and refused the coverage.
Who is covered by a Loan Policy?
Loan Policies insure against the invalidity of the lien of their insured mortgage, and insure the priority of that lien as stated in the policy. Loan policies do not directly insure buyer/borrowers.
Why should you purchase an Owner’s Policy?
The owner’s policy protects you against title defects, liens and encumbrances existing as of the effective date of the policy and not specifically excluded or excepted from the policy provisions.
What are “liens”?
A lien gives a creditor (or Governmental Authority, such as a Tax Collector), the right to seize your real property if you are unable or unwilling to pay off a debt. To acquire funds due, the creditor may take additional action and receive a court-ordered lien. Liens take many forms, from Legal Judgments on credit card debt to Federal Tax Liens to Mechanic’s Liens filed by workmen. If a creditor enforces its lien rights, it can initiate a foreclosure action to take away your property. Foreclosure actions are not limited to mortgage debts; many homeowners associations and tax assessors use this tactic to enforce their rules. A first mortgage is a lien, and your lender will want to be assured that its mortgage is in fact the primary lien on your property.
What are “encumbrances”?
An encumbrance is a right to, interest in, or legal liability on real property that does not prohibit passing title to the property but that diminishes its value. Types of encumbrances include easements, such as a utility company’s right to lay electric lines across your property for service, restrictions on use of the property that were established for all lots in a subdivision, leases, or even encroachments on your property by structures belonging to neighbors. A lien can be an encroachment, too, such as a continuing assessment from a municipality for streetlights or sidewalks.