Frequently Asked Questions

The title company, through its agent, conducts investigative research to identify and assess potential future problems with the title. We examine prior transfers of the property, including the land before any house existed. We verify if everyone with ownership rights properly participated in past closings. We require everyone with such rights at present to participate in the present closing. We identify debts and other rights of creditors of prior owners, including the current owner. We settle the accounts of holders of mortgage debt, property tax, homeowner associations, and contractors who furnish labor or materials for construction or repairs, or take measures to extinguish their rights. These efforts result in a plan for closing to properly establish the new owner's title and to prevent claims of liens for money owed.

A lending institution almost always requires a loan policy of title insurance for its protection. Though the mortgage disclosures use the word "optional" when describing owners' title insurance, opting out rarely saves a lot of money and it is not recommended. 

If we issue owner's title insurance, the buyer can expect to receive the original owner's title policy by mail from us within about 4 weeks, along with the original recorded deed. Keep your policy and original deed together with your closing documents where you can locate them when you sell the property. Having these materials as evidence of your title is sometimes helpful at the next closing and it may earn you a discount on title insurance.

When we issue owner’s title insurance, it is standard title insurance unless the buyer specifically requests enhanced title insurance and the transaction qualifies for it. Many of the risks that enhanced title insurance covers can be avoided through proper due diligence, including a survey. To learn more about the differences and the risks for which the enhanced title insurance may provide some limited coverage, ask us.

Title insurance involves research in land records, not records of construction. If you have knowledge of past construction, or are considering future plans for construction, then assess compliance with land use regulation (zoning, codes, septic, utility). We do not review and render advice regarding these matters, or the terms of declarations, restrictions, covenants, conditions, agreements or easements. Any conflict between land use regulations or the terms of recorded agreements, and plans or designs for past or future construction, are not covered by title insurance. If a prior owner did not secure a proper permit for past construction, future construction permits may be withheld. 

No. A survey is an optional form of property inspection.  Since property lines do not always match where people expect them to be, a professional surveyor is engaged to locate property boundaries. A survey is also used to locate areas where construction may be permitted, or prohibited, including areas where easement rights belong to others. Matters of concern that would appear on a survey are not covered by standard title insurance unless a current survey is reviewed and approved prior to closing. This standard exception from coverage for survey matters is the reason surveys are not required for title insurance on residential closings.

When purchasing a property, we recommend purchasing owner's title insurance coverage for the amount of your purchase price. If you have plans for construction, we recommend coverage be increased to cover the value of proposed improvements. Whether borrowing money or paying out-of-pocket for a construction project, an endorsement to existing owner's policy coverage will cover the increase in value before commencing your project, if requested.