SE Michigan’s Title and Closing Experts
Frequently Asked Questions
Why buy title insurance?
Title insurance is necessary to protect the most important investment you'll ever make - your home. Since land is permanent and can have many owners over time, others may have acquired various rights in the land, such as utility rights, before you come into possession of it. In order to transfer a clean title to a parcel of land, it is first necessary to determine whether any rights are outstanding.
What is a title search?
A title search is a review of all recorded documents affecting a specific piece of property to determine the present condition of the title. These documents include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to verify the seller's true interest in the title and right to sell property and to discover any claims, defects and other burdens on the property. First, a service known as a title search is carried out that describes the condition and quality of the title to the land you are buying. Then, your title insurance protects you against mistakes or threats that might otherwise result in financial loss to you, since problems with real estate are transferred with the ownership.
What kinds of problems can a title search reveal?
A title search can show a number of title defects and liens as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
What danger of loss can you face?
If a lender has title insurance and you don't, what possible dangers can you face? As an example, let's say you bought a house for $120,000. You've made a $20,000 down payment, and your lender holds a $100,000 mortgage lien or beneficial interest. Your lender has title insurance coverage protecting his interest up to $100,000. The loan policy protects the lender against loss due to unknown title defects. The loan policy protects the lender's interest, it does not protect you. That is why you need an owner's policy, which can be issued at the same time as the loan policy for a nominal one-time fee.
If the builder of my home already has a policy on the property, why do I need it again when I purchase the land from him/her?
A title policy insuring the builder does not protect you. Also, many things could have happened to the land since the builder's policy was issued. Liens, judgments and unpaid taxes for which prior owners were responsible may be disclosed after you purchase the property - causing you aggravation and costing you money.
What is the cost of title insurance?
The cost is directly related to the value of the property. The higher the value, the more coverage is needed. The premium is small compared to the total purchase price, usually one percent or less of the value of the property. The premium is paid only once and remains valid for as long as the property is owned by the insured.
How long does my coverage last?
The title insurance coverage never needs to be renewed. It is valid for as long as you have an interest in the property.
Who needs our title insurance services?
Any individual, corporation or organization involved in the transfer of title or deed for real estate property will need the services of a title insurance company. If that transaction takes place in Michigan, Title One, Inc. is your best choice to obtain the title insurance protection you need. Our services are utilized by attorneys, lending institutions, real estate professionals (brokers and agents), commercial and industrial builders/developers and residential real estate buyers.
Call the title experts at Title One, Inc. today to learn more about how we can fit into your next real estate transaction!