We invited Maureen Fitzpatrick, a Federal Standard Abstract trusted title closer and notary, to answer a couple of frequently asked title insurance-related questions. Read along and see what our title expert has to say.
Is title insurance regulated?
- Yes, the Department of Financial Services (DFS) is responsible for regulating all insurance in New York State, including title insurance.
- Title insurance protects the property owner and mortgage lender against future claims for any unknown defects in the title to the property at the time of sale.
If my lender gets title insurance for its mortgage, why do I need a separate policy for myself?
- 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.
How do you verify the Power of Attorney?
- Power of Attorney is a document that grants a person or an organization the power to act on your behalf in the event you’re unable to do so.
- At a real estate closing, the notary will usually verify with the Donor of POA through a phone call.
That’ll be all for part 2. Check out our YouTube channel and give us a follow for future updates. Reach out to Federal Standard Abstract for any title insurance needs. We’re the title company that you can trust and count on. For further inquiries on this topic, feel free to contact us as well. We look forward to hearing from you!
