Things that you, the Purchaser, should know: 

Survey -Insure that the survey of your property has been ordered. The survey confirms the boundaries of the property you are buying. A survey will reveal if there are any encroachments onto your property (like a neighbors fence that is built too close or vice versa.) In most cases, your lender will accept a survey if it has been done in the past 10 years and there have not been any changes to the property since that survey. There are exceptions, some lenders require a survey on every purchase.  If there has never been a survey, then our underwriter, Stewart Title, will require a new survey to insure that there are no encroachments on your property.                           

Homeowners Insurance- Get several quotes, you may want to check with the company that handles your automobile insurance as they may offer a discount for writing multiple policies.  Most lenders require you pay the first year’s premium prior to closing.  You will be required to provide a copy of the insurance policy and paid receipt at or before closing. 

Property Owners Association- If the property you are buying is located in a Property Owners Association, please make sure that you have received the packet provided by the Property Owners Association. You should review this information before closing.  All dues will be prorated based on the calendar year for the Property Owners Association.

 WHAT IS Title Insurance?- Title Insurance secures your ownership of the property. A Title policy indemnifies you against most loss or damage that you might incur to title defects on the property.  If by chance a lawsuit questions your interest, the title insurance provides a defense for the policyholder, and if the case is lost , will pay any valid claims or losses up to the face amount of the policy that was purchased.

 THERE ARE TWO TYPES OF TITLE INSURANCE:

Owners and Lenders Coverage

 Owner’s coverage is optional but it protects the purchaser, and insures that they have clear title to the property they are buying. The purchaser is charged a one time premium for Owners Coverage that will protect your interest in the property for as long as you own the property.  Lenders Coverage is usually required by your lender and you will be required to pay the premium for the Lender’s Policy.  This is a one time premium, there is no monthly charge, but it is assessed each time you refinance.  It protects the lenders interest in the property and will defend their interest should any claims arise.  These are two separate policies with two separate premiums, HOWEVER, if they are purchased together, there is a substantial price break given on the Owners policy.

 DO I NEED TITLE INSURANCE? EVEN the most thorough search cannot assure that there are no title defects.  Title problems may be there that can not be disclosed in the search, despite the knowledge and experience of professional title examiners. Some of those items are: 

• Forgery of legal documents, such as Deeds, Deeds of Trust, releases and wills

• Fraud

• Instruments executed and recorded under either an invalid or expired Power of Attorney

• Liens for unpaid taxes

• Missing or undisclosed heirs

• Deeds by person supposed single, but in fact married or minors