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A title is a recognized and protected legal right to own and occupy a particular space. When you buy a house, you are really purchasing the property’s title. Other parties may contest the title based on past rights and claims that can either infringe on your purchase or cause you to lose money. Title insurance can protect against such a claim.
Please see Shopping for Title Insurance for more information.
Please see the Real Estate Glossary for more definitions.
A title search is the search, perusal, and review of all publicly recorded instrument documents which affect a specific parcel of land to determine the present condition of title. An experienced title officer or attorney analyzes the searches resulting material and then determines if the title is sufficient and insurable.
Please see Why You Need Title Insurance for more information.
Please see the Real Estate Glossary for more definitions.
A title search can reveal issues such as title defects, liens, unpaid taxes, unsatisfied mortgages, judgments against buyers or sellers, restrictions or conditions that limit land use, and any other encumbrances and restrictions.
Please see Why You Need Title Insurance for more information.
Yes, there are some hidden hazards that a title search may not reveal including, but not limited to, defective deeds, fraud, forgery, name confusion, legal marital status, conflicting wills, mental incompetence, recorded clerical errors, and missing heirs. These issues could jeopardize your ownership rights if they arise after you have already purchased your home. Title insurance can protect against such issues.
Please see Why You Need Title Insurance for more information.
Please see 70+ Ways to Lose Your Property for more hidden hazards.
Title insurance protects a homeowner’s right to own and occupy their property and protects against decreased value due to hazards and defects that may exist in the title. If you are uninsured and adverse claims are made against your title, you could lose your home and be responsible for all legal expenses incurred trying to defend your title.
Please see Why You Need Title Insurance for more information.
Please see 70+ Ways to Lose Your Property for more hidden hazards.
A lender’s or loan policy is title insurance issued to the mortgage lender to protect them against loss due to title defects that may be unknown at the time of sale. Because this policy only protects the lender, the Buyer needs an owner’s policy to protect their own interest.
Please see Shopping for Title Insurance for more information.
Please see the Real Estate Glossary for more definitions.
An owner’s policy is title insurance issued to the Buyer to protect them against loss due to title defects that may be unknown at the time of sale and which may cause fault in ownership.
Please see Shopping for Title Insurance for more information.
Please see the Real Estate Glossary for more definitions.
An owner’s policy provides protection from financial loss in the event that charges are claimed against the title to your home. Additionally, it covers legal costs for title defense and payment of claims covered by the policy up to the policy’s maximum coverage amount.
Please see Shopping for Title Insurance for more information.
Title insurance protects against hazards by paying for legal defense to adverse claims attacking your title in addition to clearing issues or paying for losses.
Please see Why You Need Title Insurance for more information.
The types of risks your title insurance covers depends on the type of owner’s policy you choose. The standard owner’s policy protects the owner’s equity in the property that will increase as the loan is paid down. The enhanced coverage provides inflation protection, post-settlement coverage for forgeries and encroachments, some zoning, subdivision and building permit coverage as well as special affirmative coverages not provided for in the standard policy
Please see Why You Need Title Insurance for more information.
If your lender obtains title insurance, it only covers up to the amount of the loan and there is no provision for an uninsured party’s legal expense payment. Ergo, you still need a policy to cover the full property value and to cover legal expenses in the event of a claim.
Please see Why You Need Title Insurance for more information.
Yes, there are three different types of title insurance: a lender's policy, standard owner's policy, and the owner's enhanced policy.
Please see Shopping for Title Insurance for more information.
Please see the Real Estate Glossary for more definitions.
Lenders generally require title insurance during refinancing to protect their loans because a refinanced mortgage is actually a brand new mortgage. Although the existing owner’s policy purchased at the original closing remains in effect as long as you and your heirs own the property, the existing lender’s policy is null and void and you must purchase a new policy.
Please see Refinancing for more information.
Title insurance rates are approved and controlled by the insurance commission and depend primarily on the property’s purchase price. Premiums are only paid once but coverage continues as long as you have interest in the property.
Please see Shopping for Title Insurance for more information.
Title Insurance Policy Rate Calculator
Generally, it is important to have a house location survey done in association with the purchase in order to disclose some unknown issues such as conflicts between easements and current property conditions. Although they are not always required, they are always recommended.
Please see The Settlement Process for more information.
A 1031 Exchange is a section of the tax law that allows property owners to sell property and defer the taxable gain if the property was held for productive use in a trade or business, or for investment. Sellers who are selling their principle residence typically do not need this type of tax treatment because the tax code already allows them in most cases to defer their gain when they sell their property.
Please see 1031 Exchanges for more information.
Please see the Real Estate Glossary for more definitions.
A closing, or settlement, is the conclusion of a transaction, which includes delivering the deed, signing notes and security instruments, disbursing funds necessary to the sale or loan transaction. MAXIMUM typically holds the closing in one of our branch offices; however, you may schedule a different location with your MAXIMUM Settlement Specialist.
Please see Closing Costs for more information.
Please see the Real Estate Glossary for more definitions.
Closing costs are all expenses related to closing your real estate transaction and can include items such as survey fees, taxes, title insurance, attorney or agent fees, and the balance of your down payment. Before you close on your purchase, you should review your final HUD-1 to verify all included calculations, amounts, and information.
Please see Closing Costs for more information.
A HUD-1 Settlement Statement, or closing statement, is a balance sheet that shows the amounts being debited from and credited to the Buyer and Seller in addition to other detailed information such as loan amount, purchase price, and more. The Department of Housing and Urban Development requires that the Title Company or closing agent completes this document on most lender-involved residential real estate transactions.
Please see Closing Costs for more information.
Please see the Real Estate Glossary for more definitions.
Closing cost credits are generally applied as different line item Seller debits and Buyer credits on your HUD-1. Because limitations to closing cost credits vary depending on the lender and the transaction, you should ask your lender for more detailed information.
Please see Closing Costs for more information.
You will not lose your property if you have a problem and make a claim. If there is a possibility of an unfavorable claim against your title, you should contact MAXIMUM as soon as possible. Your owner’s policy covers legal expenses that may be necessary to investigate, litigate, or settle the claim.
Please see The Settlement Process for more information.
As a Buyer, when you will receive your bottom line figure depends on the final loan package delivery and the time of month, but is usually 24 hours in advance. However, if your lender delays delivering the loan instructions or your settlement falls on a Friday or at the end of the month, your receipt of the bottom line figure will be delayed.
Please see The Settlement Process for more information.
To receive a reviewable loan package prior to closing, you may request one from your lender or ask your MAXIMUM Settlement Specialist to attempt to retrieve the package from the lender early.
Please see The Settlement Process for more information.
Buyers:
- Government-issued photo ID
- Lender paperwork
- Cashier’s check to cover closing costs
- Hazard insurance paperwork
Sellers:
- Government-issued photo ID
- Receipts for any work completed
- Keys to give to Buyer
- Cashier’s check (if applicable)
- Wire instructions (if applicable)
Please see The Settlement Process for more information.
Whether you are the Buyer or Seller, if you need to bring money to the closing, it should be in the form of a certified check, cashier’s check, or bank wired funds.
Please see The Settlement Process for more information.
Time periods for proceed disbursements varies from state to state. In some states, funds may be disbursed the same business day as closing while other jurisdictions can take up to 48 hours because the transaction, by law, must first be recorded. Friday and Holiday weekend settlements may also delay disbursement.
With MAXIMUM, you may choose your disbursement method. Simply let your MAXIMUM Settlement Specialist know if you would prefer a physical escrow check or if you prefer to have the proceeds wired directly into your bank account.
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