Class Abstract

Answers to some of your questions

What is a Title? A title is evidence, of right, that a person has to the ownership and possession of land. It can be possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use. Please contact us if you have any questions. What if Title Insurance? There are two types of Title Insurance: Lender's Policy - The lender will require that the borrower purchase a Lender's Policy. This policy only insures the lender there is a valid, enforceable lien on the property. In the event of a foreclosure, the lender is covered. The Lender's Policy does not protect the owner. Owner's Policy - An Owner's Policy protects the owner of the property from any hidden risks, which may not be disclosed by even the most meticulous search of public records. It is designed to protect the borrower from title defects that existed prior to the purchase of the Owner's Policy. It also covers the full cost of any legal defense of the title, if and when a claim is made against the title to the property. What are some examples of Title defects? Any number of problems can remain undisclosed even after Public records are thoroughly searched. These hidden defects are dangerous indeed because you may not learn of them for several months or even years. Yet they could force you to spend substantial sums on a legal defense and still result in the loss of the property. Examples of Title defects:
	Creditor claims Mistaken interpretation of wills and trusts Incorrect representation of marital status Undisclosed heirs Mistakes in recording legal documents Incorrect legal descriptions Errors in tax records Fraudulent execution of documents Forged deeds, releases, etc.
What you will need at closing? Certified funds or cashier's check in the amount of your closing costs, as per your Good Faith Estimate from your loan officer. The check should be made payable to Class Abstract. Proof of personal identification is required. A picture ID, such as a driver's license, state identification card, passport, etc. A new hazard insurance binder for your new home, along with a paid receipt for the first year premium. If refinancing, a new binder is required showing premium and next due date. Make sure the correct loss payee clause is included in your insurance policy; check with your mortgage company. Please bring along the name, address and phone of your insurance agent. A list of all previous addresses for the past 10 years will be required at closing. Your loan officer may require proof of sale on your previous home, if applicable. This generally includes a copy of the HUD-1 settlement statement and a copy of the warranty deed conveyed. Additional documentation may be required by your mortgage company, such as proof of creditor payoff, gift letter, evidence of deposit, etc. Check with your loan officer for special requirements prior to closing. How much does an Owner's Policy cost? The Owner's Policy is basedupon the purchase price of the property and a discount is usually available if purchased in conjunction with Lender's Policy at the time of closing. The Owner's Policy has a one-time premium that insures the home as long as the owner or their heirs have an interest in the property. Is an Attorney's Opinion as good as an Owner's Policy? No. Title Insurance offers your more protection, insuring you against monetary loss caused by title defects or encumbrances on the title to the property. An attorney's opinion is not an insurance policy.