What is a title?

A title is the evidence or right which a person has to the ownership and possession of land. A defect in that title can be any legal right held by someone other than the owner to claim property or to make demands on the owner of that property. 

What is title insurance?

A Title Insurance Policy insures that a new buyer will receive title to the real estate free and clear of all possible encumbrances, and that any and all liens that were in the seller's name(s) have been released. The policy insures that a new buyer will stand protected from a loss or damage as a result of title defects. Title insurance provides protection against forged documents, mistakes in public records, fraud and incorrect property descriptions, just to name a few. The title company will provide a thorough search of the public records to reveal possible liens, claims, or encumbrances against the real estate.

The Owner's Policy:
The Owner's Policy is issued to the new owner or purchaser, guaranteeing that the Title to the real estate they are purchasing is free and clear of all liens. Covenants and restrictions, and any other recorded documents that may affect the use of the real estate, are revealed to the purchaser in the title commitment and policy.

The Lender's Policy:
The Lender's Policy is issued when there is a Mortgage Lien to be recorded on the real estate. It guarantees that the title to the real estate for which they are lending funds is free and clear of all liens, except those that are noted in the title commitment and policy. Most lenders require title insurance policies to insure that their mortgage is the first lien on the real estate in the event they have to foreclose on the property someday.

Closing Services:
As closing agent, American Land Title Company is a neutral third party who can carry out the instructions in a purchase agreement between the buyer and seller or the borrower in a refinance situation. We also handle all of the disbursement checks associated with the closing and file documents at the Courthouse for the public record.

Why do I need title insurance?

Title insurance is necessary to protect against those risks which are present in all real estate transactions. Those risks are typically divided into two main categories:
Hidden Hazards which cannot be detected in the examination of title such as forgery, incompetency of grantor or mortgagor, fraud, unknown heirs, impersonation, prior taxes or liens, just to name a few. Human Error which will always be present.

How much does title insurance cost?

The cost is directly related to the value of the property. The higher its value, the more coverage is needed. The premium is small compared to the total purchase price. The premium is paid only once and remains in force for as long as the property is owned by the insured and continues to protect the insured on warranties after it is sold.

What to Expect as a Seller during Closings?

When opening an escrow order, a letter requesting information is sent to the seller for details regarding the property. Once this letter is sent back. the closing agent starts the closing process based upon the information you provided. Once all parties are ready to close the transaction, the Real Estate Agent or Closing Agent calls and makes appointments for signing of the documents and Settlement Statements. When everything has been signed, moneys are received from the buyer and lender (if one is involved), authorization to record takes place. Documents are sent to the Court House for recording. Disbursement of funds occurs after recording. If closing is in the afternoon, recording and disbursement may not happen until the next business day. Proceeds to the seller can either be picked up, mailed or wired and/or deposited to a bank of seller choice.

What to Expect as a Buyer during Closings?

When opening an escrow order, information is gathered by the Closing Agent regarding buyers names, forwarding addresses, phone numbers and lender information. When all parties are ready to close, the Real Estate Agent or Closing Agent will contact the buyers for an appointment to sign documents. The Closing Agent will okay the documents for signing and answer any questions the buyer might have. Upon signing and the receipt of all funds, deed and loan documents are sent for recording. Acceptable forms of payment to close are: cashiers check, check from a local bank ( with verified funds) or wired funds. Money market checks will delay the recording and disbursing of a closing. They have to clear our bank and payees bank, before we can record. Once recording has taken place and ownership has been transferred, all moneys are disbursed and the transaction is complete.

What to Expect when You Refinance?

When you refinance your property, the lender will call and open an escrow order. When the lender and borrower are ready to close the refinance, they set up an appointment for the signing for loan documents. At signing the Closing Agent will go over all documents and answer any questions. Documents are then notarized and sent back to the lender for review. When refinancing your property, there is a recission period of three business days during which you may cancel the transaction. Once the recission period has expired and we have confirmation from the lender that the loan has been funded, recording of the documents occurs. Money is disbursed and the transaction is complete.