Title Insurance offers protection to buyers and lenders in real property transactions and insures that each will have good title,free from any liens or encumbrances. A title insurance policy is retroactive, meaning that if a policy effective date is July 1, 2000, the owner of the policy is protected from any adverse claims arising before and up to July 1 2000. A title insurance policy does not cover claims arising after the effective date.
A title company is in position to give title insuracne to a buyer and/or a lender only after it has conducted a search of the property. After the search is done, a Title Commitment is prepared. Schedule A of the Title Commitment states who the company is insuring and gives a description of the property to be insured. Schedule B1 and B2 list any items that will be expected from coverage under the title insurance policy. Finally, Schedule C lists additional requirements that the title company will have to meet before closing.
To obtain the benefits of title insurance, a Buyer and/or Lender need only pay a premium equal to the amount of coverage desired (typically, the rate is $5.00 per $1000.00 of coverage). Most purchase agreements provide for the cost of the policy to be split between buyer and seller. Unlike home owner's insurance, a title insurance premium is paid only once - it is non-renewable - and the policy lasts as long as the policy has an interest in the property.
Because title insurance rates are set by state guidlaines, the rate will not vary from title company. Therefore, the only way to fairly compare title companies is by the services they offer and other charges associated with closing a transaction. Please keep in mind that we are able to offer reduced rates or reissue rates for customers who have used our services in the past and/or customers who provide us with copies of prior title work
Provided by
CORNERSTONE REAL ESTATE TITLE COMPANY, Ltd
330-433-6800
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