FAQ’S ABOUT TITLE INSURANCE


What do I bring to closing?
Buyer
Photo ID
Cashier’s Check payable to Germantown Title Company
Homeowners Insurance Declaration Page, and paid receipt or invoice

Seller
Photo ID
Most recent mortgage statement(s)
Most recent water, sewer, gas, trash, and tax statements/receipts
Any conditions of the Agreement of Sale
Keys

Borrower
Photo ID
Cashier’s Check payable to Germantown Title Company, if applicable
Most recent mortgage statement(s)
Any conditions of Loan Commitment


What is title insurance?
It is an insurance policy that protects the insured against loss should the condition of title to the land be other than as insured. Unlike other types of insurance that offer protection against future possible occurrences, title insurance offers protection against past occurrences which could result in a claim at a future date. Coverage continues in effect for so long as you have an interest in the covered property. If you should die, the coverage automatically continues for the benefit of your heirs. Title insurance provides the insured with "peace of mind" in knowing that you are receiving good and marketable title to the real estate you are purchasing.


Why do I need title insurance?
When you buy property, you expect to enjoy certain benefits from ownership...to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to cover these rights. Without an owner's title insurance policy, you may not be fully protected against errors in the public records, hidden defects not disclosed by the public records, or mistakes made during the examination of the title of your new property. Your owner's title policy insures that if such an occasion arises, you will be defended, free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.


What does title insurance cost?
The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, and then the coverage continues in effect for so long as you have an interest in covered property.
For a rate go to http://titlefeecalculator.firstam.com/


If my lender obtains title insurance, why do I need it?
The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest. And in the event of a claim, there is no provision for payment of legal expenses for an uninsured party. When a loan policy is being issued, the small additional expense of an owner's policy is a bargain


If I have title insurance, why do I need to buy again for a Refinance?
When you purchased your home, you probably paid for Owner's and Lender's Title Insurance Policies. Your Owner's Policy will remain in force and effect; however, when the existing loan is paid off at the time of refinancing, a new Lender's Policy must be issued.