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.
What are the most common mistakes you see homebuyers make?
- Homeowners didn’t bring self-identification that matches how they will take title during closing.
- They forgot to bring a checkbook and didn’t know the differences between personal checks and certified checks/bank checks.
What does the owner’s title insurance cover?
- Title insurance protects the owner of a property and the mortgage lender against future claims for any unknown defects in the title to the property at the time of sale. Claims can arise because of fraud, forgery, unpaid real property taxes, judgments, liens, or other encumbrances that were not discovered during a search of the property’s title history conducted before the sale.
What is a title search?
- A title search is a detailed examination of historical public records, including deeds, court records, property and name indexes, and other public documents.
What is standard coverage and extended coverage policy?
- Standard coverage handles such risks as:
- Forgery and impersonation;
- Lack of competency, capacity or legal authority of a party;
- Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner);
- Undisclosed (but recorded) prior mortgage or lien;
- Undisclosed (but recorded) easement or use restriction;
- Erroneous or inadequate legal descriptions;
- Lack of a right of access;
- A deed that’s not properly recorded.
- An extended coverage policy may be requested to protect against such additional defects as:
- Off-record matters, such as claims for adverse possession or prescriptive easement;
- Deed to land with buildings encroaching on land of another;
- Incorrect survey;
- Silent (off-record) liens (such as mechanics’ or estate tax liens); and
- Pre-existing violations of subdivision laws, zoning ordinances or CC&R’s.
That’ll be all for part 1. 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!
