| Frequently Asked
Questions |
|
| What is a
title? |
|
A title is the foundation of property ownership.
It is the owner's right to possess and use and
transfer the property. |
| What is a
title search? |
|
A title search is a detailed examination of the
historical records concerning a property. These
records include deeds, mortgages, court records,
property and name indexes, taxes and many other
documents. The purpose of the search is to
verify the property owner's right to sell or
finance the property and to discover any claims
or defects to the property. |
| What kind of
problems can a title search reveal? |
|
A title search can reveal several types of
defects in title, liens, encumbrances and
restrictions. Among these are unpaid taxes,
easements, unsatisfied mortgages, judgments
against the property owner and restrictions of
use or transfer. |
| What is title
insurance? |
|
Title insurance is a policy of protection
against loss if any of the problems listed above
result in a claim against your ownership. |
| How does
title insurance protect my investment if a claim
should arise? |
|
If a claim is made against your property, title
insurance, in accordance with the policy, will
assure your legal defense, including paying
court costs and related fees. If the claim
proves valid, you will be reimbursed for your
actual loss up to the face amount of the policy. |
| What are the
different types of title policies? |
|
There are two types of title policies- a
lender's policy and an owner's policy. The
lender's policy protect the lender's interest in
the property as security for the outstanding
balance under the buyer's mortgage. The owner's
policy protects the buyer's investment in the
property up to the face amount of the policy. |
| What is a HUD
Settlement Statement (HUD-1)? |
|
This is a summary of the financial portion of
the real estate transaction. The HUD will list
the purchase price, loan amount, closing costs
for both buyer and seller and show all
pro-rations and sums to be disbursed by the
title company to all parties. |
| What is
pro-ration of property taxes? |
| his is the process of charging either the buyer
or seller for their share of real estate taxes
owed on the property for their respective time
of ownership. Taxes are said to be "pro-rated
back or forward to the due date of the property
taxes. |
| What is
pre-paid interest? |
This is interest due from the date of a loan
closing to the first day of the following month.
Most loans require payments to be due on the
first day of the month. Each monthly payment
reflects the principle and interest due on the
loan for the previous month. A loan closing on
the 20th day of the month will require interest
adjustment through the 1st day of the following
month. The first payment will then be due on the
1st day of the month following. Interest
adjustment is considered a settlement charge and
will be disclosed on the HUD.
Call Cole Tile and Escrow to discuss your title company needs at 410-252-5180!
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