Insuring The Future
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Frequently Asked Questions
While there are only a few times in your life that you’ll use High Rise Abstract services, they provide an important protection, so you will want to get the very best. Here at High Rise Abstract, we treat your needs as if they were our own. We will work with your lender, realtor and attorney and make sure you have got what you need, when you need it.
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What is a Title Search ?
Since the title to a property establishes legal ownership, it’s important to make sure there are no prior liens or legal claims. So, prior to the purchase or refinancing of a property, a title search is conducted to gather information on its status including things like unpaid taxes, unsatisfied mortgages, judgements against the seller, or any other restrictive conditions. All sorts of documents are examined, and the seller’s right to transfer ownership without legal encumbrance is established.
What is Title Insurance?
Title Insurance protects the lender’s investment. It’s required by lenders, and is paid for by you, the borrower. As the amount of equity the lender has changes over time, the amount of title insurance coverage changes accordingly.
Many homeowners choose to protect their own interests as well, by purchasing a separate Owners’ Policy.
Why do I need an Owners Policy?
Claims against title can be costly, time-consuming, and may even result in the loss of the property itself. In a worst case scenario, the lender is protected by the Title Insurance – however, you are not. An Owners Policy will protect your interests as well.
What does Title Insurance and Owners Policy Cost?
The cost of Title Insurance or an Owner’s Title Insurance policy will vary according to the value of the property being insured. Regardless of whether it is a policy that protects the lender, or one that protects you, there is generally a one-time premium that protects either the lender or you for as long as the lender, you, or your heirs have a financial interest in, or own, the property. There is a substantial discount if you purchase both policies at once.
What happens if a claim is made on title of a piece of property I own?
If someone makes a claim against your title and you do not have an Owner’s Policy, you will need to contact an attorney for assistance.
If you do have an Owner’s Policy, the process is similar to processing an auto or homeowner’;s insurance claim.
You would notify the title insurance company in writing and follow their directions. They will either pay the claim, negotiate with the other party in an attempt to settle the claim, or defend a court case related to title. The title insurance company will pay the legal costs incurred. Regardless of the outcome, your investment is protected.