What is Title Insurance?
Title Insurance protects your investment in your home against mistakes in public records, and other "clouds" on title.
For the Buyer
Without a title insurance policy, you may not be fully protected against errors in public records or hidden defects not disclosed by the public records. Title insurance protects you against these hazards by paying valid claims and defending attacks on title. Without title insurance, you may be held accountable for any prior liens, judgments or claims brought against your new property. However, your 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. Even the most careful title exam may not locate hidden hazards such as forged deeds or mistakes in public records.
For the Seller
The title insurance policy that you provide the buyer is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership.
When Refinancing
Even if you have a title policy from the purchase of the home, a loan policy of title insurance will be required when refinancing for many reasons. Since the date of the original closing, liens may have been placed on the property. If you have taken a second mortgage on the property since purchasing it, the new loan could threaten the priority of the new lenders' mortgage.
Escrow
The Escrow department at Competitive Title coordinates your closing, handles a variety of details and ultimately ensures that the Buyer obtains the property and that the Seller secures the proceeds. Competitive Title acts as an impartial third party, holds and disburses the associated funds and documents in accordance with the purchase agreement, and resolves any issues prior to closing. We are always available to speak with Buyers and Sellers about the transaction.