Title Insurance

Title insurance is often acquired as a part of the process during a home purchase transaction. For owners, their title insurance policy remains in effect throughout the duration in which they own their home.

For lenders, this remains in effect as long as they have money invested in the home (mortgage). In this review, we discuss the role of title insurance for a house, what it does and does not include, and the different types of policies, among other important aspects that are essential to understand.

What is Title Insurance for a House?

Title insurance is an insurance policy that protects the policyholder from financial loss due to issues with the title of a property and ownership. Title insurance specifically provides coverage for legal fees, title searches and other costs associated with the title that could arise throughout the transfer of the title during a home sale.

In most cases, the policyholder purchases title insurance at the time of closing (or during due diligence), and the policy usually remains in effect as long as the policyholder owns the house.

Title insurance for a house provides peace of mind for all parties involved with a sale, including buyers, lenders, sellers and real estate agents. In most cases, title insurance is necessary during the due diligence stage of a real estate purchase.

What Does Title Insurance Include?

The primary purpose of title insurance is to protect the policy holder from underlying issues with the property’s title that may have been undiscovered before the purchase. More specifically, a policy is beneficial if a home title search is required, protecting the policyholder if there are any liens, ownership disputes, etc.

The types of issues the policyholder is protected against include but are not limited to:

• Liens from contractors, taxing entities and previous lenders
• Forged documents
• Survey errors related to the property
• Building code violations related to previous owners
• Errors on the property deed
• Boundary disputes and encroachments
• Spouse claims (e.g., if the spouse did not sign off on the sale)

Keep in mind, this is not an all-inclusive list; depending on the history of your home, there are a variety of issues that could arise during title transfer. The best way to ensure you are adequately protected is by purchasing a title insurance policy.

What Does Title Insurance Not Include?

Title insurance protects the policyholder from existing issues with their home title. It may also provide protection if future incidents occur in which the holder is not at fault.

However, it does not cover instances in which the owner has title problems due to their own errors, missed mortgage or lien payments, etc. Of course, all policies are different, and you should speak with the title company directly to learn about what may not be covered in your policy.

For example, if the homeowner (policy holder) fails to pay a contractor for work done on the home and subsequently there is a lien placed on the house, then their title insurance may not cover the associated costs. Additionally, title insurance policies generally do not cover the costs associated with eminent domain, which occurs when the government seizes the private property.

Owner’s Policy vs. Lender’s Policy: What is The Difference?

There are two primary types of title insurance policies, which are the owner’s policy and the lender’s policy. An owner’s title insurance policy protects the home buyer’s equity. Consequently, the coverage amount is usually equal (or similar) to the purchase price and remains in place as long as the buyer owns the house.

A lender’s policy protects the lender; more specifically, it protects the lender’s investment into the property. A lender’s title policy is usually required anytime there is a mortgage taken during a home sale.

Both policy options cover property ownership and title issues, including but not limited to liens, encumbrances and easements. However, every policy should be unique and personalized, meeting the precise needs of the lender or the buyer.

Is Title Insurance Necessary?

This depends on your role in the home buying process. For instance, when purchasing a home with a mortgage, a lender’s title insurance policy is required. However, an owner’s title insurance policy is not required (but still highly recommended).

The risks associated with not having title insurance are far greater than the one time cost an owner pays for their policy. Keep in mind, there were, in most all cases, previous owners of your house and your land. The builder of the land may not have paid all of their contractors, which could create concerns and lead to high costs you are obligated to pay without title insurance.

Call The Title Insurance Pros at Mathis Title Company

We take genuine pride in assisting home buyers, home sellers, lenders and real estate agents with title services, including title insurance. If you are in need of title insurance, or other title-related needs, contact Mathis Title Company today. We will gladly answer your questions and assist you with developing your policy.

Commercial real estate transactions are considerably different from residential transactions. Most notably, the sum of money being exchanged is much larger. For this reason, lenders must know they are well protected before they provide a loan for a buyer. Commercial land title insurance is a great way to mitigate financial risk for the buyer and the lender during a commercial land transaction.

In this review, we discuss what you need to know about commercial land title insurance including how it is defined, how it works, what is included and how to obtain a policy.

What is Commercial Land Title Insurance?

Commercial land title insurance, or simply commercial title insurance, is an insurance policy that protects mortgage lenders, owners and purchasers from defects in a title for commercial real estate. There are two primary types of commercial land title insurance policies:

• A lender’s policy – This protects the lender from issues with the commercial property’s title. This policy is required for commercial real estate transactions that involve borrowing funds to complete the transaction. It remains in effect for the duration of the loan and terminates upon payoff to the lender. This policy does not protect the property owner (buyer).
• An owner’s policy – This protects the property owner (the buyer) if issues are found with the property’s title during closing or after the sale. Contrary to a lender’s policy, this policy provides the owner with protection for the lifetime of their ownership of the property. An owner’s policy is not a requirement, but it is strongly recommended to limit financial risk long-term and help ensure a smooth closing process.

What is The Benefit of Commercial Land Title Insurance for The Policyholder?

Commercial land transactions come at a greater risk as there is more money involved. The primary benefit of commercial land title insurance is that it protects the policyholder from financial costs associated with title issues. For example, if the ownership of the property is challenged, the title insurance covers the costs to defend ownership.

Additionally, title insurance acquired during a transaction ensures that any issues are detected before the buyer completes the purchase. This ensures they are not responsible for any issues that occurred before they took ownership of the commercial land.

How Does Commercial Land Title Insurance Work?

Commercial land title insurance providers detect and seek to eliminate title concerns before the purchase occurs, protecting the buyer and lender from costs associated with title concerns discovered later. Specifically, the title company conducts an extensive title search to uncover possible liens, encroachments, etc. If issues are detected, they work to ensure they are cleared before purchase.

Title insurance policies are purchased in a lump sum before or during the closing process; there are no continuing payments to be made. For a lender’s policy, it lasts the entirety of the loan.

For an owner’s policy, it lasts for as long as the policyholder owns the commercial property, providing the policyholder with continued protection after the purchase. Even if the claim is found to be not legitimate, the associated legal costs are covered by the title insurance provider.

What Does Commercial Land Title Insurance Cover?

Every policy should be personalized; every policyholder has unique needs, and there is no cookie-cutter, one size fits all solution when it comes to commercial land title insurance. However, there are common protections most policies provide. These protections include:

• Unrecorded liens – These are debts placed upon a property that may or may not appear in public records. An unrecorded lien could be related to unpaid taxes, mortgages, work performed and utilities.
• Title defects – This could include deeds that are forged or unauthorized. Title frauds are a more common form of a title defect that may be detected during a commercial title search.
• Inaccurate legal descriptions – Errors in public records could impact the sales process and lead to concerns after the sale is complete. Incomplete legal descriptions are equally of concern.
• Encroachment concerns – This occurs when the commercial property owner goes beyond their property and onto their neighbor’s land. For instance, if the previous owner built a storage facility that encroaches on their neighbor’s property, then it could lead to encroachment issues with the commercial title.

How Can I Obtain Commercial Land Title Insurance?

A commercial land title insurance policy can be purchased through a title company of your choice. Ideally, you should choose a company that has experience with commercial land transactions in your area.

This will ensure familiarity with recent or recurring issues with that area, as well as local laws and ordinances that may be applicable to the property being purchased. Keep in mind, the buyer and the seller may need to agree upon the title insurance provider before closing, particularly if the company will also serve as the escrow agent.

Contact Mathis Title Company Today to Get Started

The experienced team at Mathis Title Company provides a variety of settlement services including title insurance, to a wide range of the Northern Virginia areas. To discuss the specific needs for your policy and receive a quote, contact Mathis Title Company today by calling 703.214.4020 or contacting us online.

A title insurance commitment is provided to the policyholder before the title insurance policy is issued. It is important to have a full understanding of your title insurance commitment and adequately read through the document before you officially start your insurance policy.

In this review, we discuss the specifics of your commitment, including precisely defining it, the different components that are included, and more. Of course, it is always best to speak directly with your title company about any concerns or questions you have about your specific title insurance commitment.

What is a Title Insurance Commitment?

A title insurance commitment is a document provided by the title company that contains the terms, conditions and exclusions of your title insurance policy. It also provides a summary of the findings from the title search and examination.

Specifically, it may mention any potential issues that were discovered with the ownership and title of the property. The title commitment is often a vital part of the due diligence and closing process for buyers, sellers and lenders.

In some cases, the title insurance commitment may also outline any conditions that must be met before the title insurance policy is officially issued. For example, the commitment may stipulate that certain premium payments must be met, along with other outstanding issues. The title insurance policy is officially issued once all stipulations established in the commitment are fulfilled.

What are The Different Components Included in a Title Insurance Commitment?

Each section of the title insurance commitment highlights a separate piece of information that is important. You should review all sections of the commitment before your title insurance policy is issued to you. Specifically, there are three schedules that highlight the majority of the information in a title insurance commitment. These schedules are as follows:

• Schedule A
• Schedule B-I
• Schedule B-II

Below is a basic review of Schedule A, Schedule B-I and Schedule B-II of a title insurance commitment.

Schedule A

You can find many important details about your title insurance policy in Schedule A. It provides the general information about the property and your title insurance policy. More specifically, Schedule A generally includes:

• Commitment date
• Policies to be issued
• Interest in the land
• Current owners
• Legal description

Schedule A usually includes the premium to be paid for the insurance policy, along with any specific conditions that are applied to your policy. It is important for buyers, lenders and real estate agents to review the information highlighted in schedule A (including the terms and conditions) before starting the policy to ensure there are no discrepancies.

Schedule B-I

Schedule B-I establishes any issues with the ownership and title of the property. It also lists any known exceptions that apply. This section usually also includes liens, encumbrances or easements that may affect the property’s value or use (if applicable).

Based on this information, Schedule B-I often includes a list of conditions (requirements) that the policyholder must meet before their insurance policy is issued. It is important to quickly resolve any issues that are outlined in this section to avoid setbacks with the due diligence and closing processes. Often, depending on your title company, there may be a list of steps to help ensure all requirements are met.

Schedule B-II

Schedule B-II discusses those items in your title insurance policy that are not covered. More specifically, this section of your title insurance commitment discusses the exceptions and exclusions.

Exceptions, in particular, are items that are attached to the property and persist even after the ownership is transferred to the Buyer. Exceptions that are outlined in Schedule B-II may include but are not limited to:

• Covenants
• Conditions and Restrictions (CC&Rs)
• Easements
• Homeowners association (HOA) rules
• Mineral rights (as reserved in patents)
• Leasehold interests

Certain exceptions can often be eliminated by attaining a release, waiver, affidavit, deed or other official document. Your title company should work with you to ensure you understand all exceptions and exclusions that are included in Schedule B-II and be able to answer any questions you may have.

It is important to have a full understanding of this section (and the title insurance commitment overall) to ensure a smooth transition of the title and home sale.

Contact Mathis Title Company Today for a Reliable Title Insurance Policy

Title insurance can be a valuable part of a home purchase and home ownership. To ensure you receive the protection you need, when you need it, be sure to work with a reputable title insurance company.

At Mathis Title Company, we offer a range of title services, including title insurance. If you are a buyer, seller, lender or real estate agent requiring title insurance (or other title-related services), contact Mathis Title Company online or call 703-214-4020.

A title insurance policy is a great way to reduce the risk of complications during a real estate transaction. This may include various types of fraud, along with a range of other benefits. In this review, we discuss how title insurance may be able to reduce the risk of wire fraud occurring and the additional advantages policyholders receive with a title insurance policy and when working with a reputable title insurance service provider.

What Is Wire Fraud?

Wire fraud is a type of real estate fraud where the fraudster steals money during a real estate transaction. In most cases, this involves the diversion of funds away from the intended recipient and to the fraudster.

In other instances, someone involved in the sale may directly send the fraudster funds during a real estate transaction. For example, a fraudster may gain access to the lender or title company’s email, and they may lead the buyer (via the hacked email) to send a wire payment to the wrong account.

Does Title Insurance Protect Against Wire Fraud?

Title insurance may help buyers, sellers, lenders and others involved in the home sale process protect themselves from wire fraud. It is able to severely reduce the risk of wire fraud occurring as the title insurance company closely monitors all activities involved with the title (and closely monitors the sales process overall).

They have the ability to quickly detect any concerns that arise and address them before fraud occurs. Should an incident occur, the insurance will step in to assist with the costs to defend your title and rights.

What Additional Benefits Does A Title Insurance Policy Provide?

In addition to legal and financial protection against cases of wire fraud, a title insurance policy may also provide clean title assurance, legal protection and help allow for a fast property transaction.

Title Protection

The primary purpose of a title insurance policy is to protect the policyholder from financial loss if a title dispute occurs. Notably, title insurance protects you financially in the event there are hidden liens, errors in public records and other types of ownership disputes. Without title protection via a title insurance policy, sellers, buyers, lenders and real estate agents could face substantial legal and financial challenges.

Financial Assistance

Title insurance policyholders are protected from costs associated with lawsuits, title disputes, and more. This reduces the overall risk for the policyholder or those involved with the sales process.

Clean Title Assurance

Title insurance providers want to ensure the title that is being transferred is clean by conducting extensive research of the current title status and its history. Specifically, a clean title means there are no unpaid taxes, legal obligations or fraud with the title. This helps ensure a smooth transfer process without any setbacks.

Peace Of Mind

Title insurance policies provide peace of mind for the policyholder as they know their title is well-protected. The title insurance company keeps a close eye on the title to ensure no fraud occurs and will promptly take action if fraud does occur.

Additionally, the policyholder is financially and legally protected in the event issues do arise. Often, the title insurance provider works with an underwriter who issues the insurance policy and provides financial coverage for any claims made. This means the policyholder does not have to worry financially throughout the sale and title transfer.

Fast Property Transaction

You may also experience a much faster property and title transaction with title insurance. This is because it is easier and faster to verify the details of the transaction and ensure the title is clean. Consequently, this also reduces the risk of setbacks, which further ensures you are able to close the sale of your home and transfer your title faster.

Who Needs a Title Insurance Policy?

Title insurance is often a good idea for multiple parties, including the lender and the owner. During a real estate transaction, it may also protect all other involved parties. There are two primary types of title insurance policies, which are:

• Owner’s policy – This policy protects the owner of the home and title (the one whose name is listed). In the case of a real estate transaction, the buyer and the seller may benefit from title insurance. An extended owner’s policy may be a viable option for owners who need or desire higher limits and reduced risk.
• Lender’s policy – When financing a mortgage for property, this policy protects the lender’s investment. If any issues arise with the title, the lender is financially protected.

Surprisingly, for all of the benefits title insurance provides to multiple parties, the cost of a title insurance policy is usually only .5% to 1% of the purchase price of the home. It is a one time payment which provides coverage for the duration of ownership of the property. For as long as you own your home, you are protected.

Need Title Insurance and Protection? Contact Mathis Title Company Today

Mathis Title Company offers title company services and related legal services for buyers, sellers, lenders and real estate agents. If you are concerned about potential write fraud and would like to learn more about how title insurance can help you protect yourself financially and legally, contact Mathis Title Insurance Company today at 703-214-4020 or schedule an appointment online.

Home title fraud can affect anyone who has purchased a home. Understanding risks of title fraud and what can be done to prevent it from occurring can help homeowners protect their investment. This review discusses what constitutes home title fraud, what risks title fraud presents for home buyers, and most importantly, how homeowners can protect themselves from title fraud.

What Is Home Title Fraud?

A home title denotes who has legal ownership of a particular property and is usually in the form of a deed. Home title fraud, also called deed fraud, occurs when the title to your home is stolen and is a form of identity theft.

A criminal may commit home title fraud by forging the deed and submitting it to allow for the illegal transfer of ownership. From this point, the fraudster may sell the home’s title and subsequently the property itself. Fraud can also be perpetuated by refinancing the loan, taking the proceeds and allowing the loan to expire, which causes the home to fall into foreclosure.

What Happens When Home Title Fraud Occurs?

The most obvious risk of home title fraud is the potential loss of your property. However, there are other complications title fraud and theft may cause, such as the incurred legal battles, litigation, financial loss, delayed closing times and emotional stress placed upon the title owner and their family.

Loss Of Property

Title fraud can lead to the loss of your property. Many victims of title fraud are unaware their title has been stolen; in the meantime, the thief may sell the title, refinance or allow your home to enter foreclosure. In the worst-case scenario, you could find yourself temporarily or permanently no longer in possession of your home.

Legal Battles and Litigation

Of course, you have the option to fight the theft and regain ownership of your property. However, this will likely involve a lengthy and costly legal battle. Any matter being resolved in the court system may also require multiple court appearances.

Financial Loss

The loss of your home’s title due to fraud could certainly create a negative financial impact. This may include costs associated with hiring an attorney, costs for filing motions with the courts and possibly displacement costs for temporary housing. There may be costs associated with repairing any damages that occur to your home as a result of the fraud.

Delayed Closing

Issues with your home title could lead to major delays when you attempt to close the sale of your home. This can lead to major frustration for yourself, the buyer, the title company, and everyone else involved in the sale process.

Emotional Distress

One of the most unfortunate risks of title fraud is the amount of stress it can place upon homeowners and their families. The financial and legal strain it causes leads far too many to feel overwhelmed. The process can also take time to resolve, which leads to a fair amount of stress over a long period of time.

How Title Services Helps Protect Against Home Title Fraud

Of course, the best method is to prevent fraud from happening in the first place. The good news is that you can also protect yourself by taking certain precautionary steps. Most notably, you can help prevent title fraud from occurring (or causing complications) by working with a title company that monitors your title and promptly notifies you of any suspicious activity and also takes action if there are any instances of potential fraud or theft.

Additionally, title insurance helps protect you from financial loss in the event title fraud does occur. For example, title insurance may cover legal costs associated with challenging the possession of your title in court.

The Different Types Of Title Services To Protect Against Title Concerns

Title insurance is a great way to protect yourself from financial responsibility related to title fraud against you and reduce your overall risk. Notably, title insurance is recommended for title owners who are at a higher risk of fraud (i.e. individuals who own multiple titles) and those who are going through a real estate transaction. Title services are recommended for buyers, sellers, lenders and real estate agents who need to reduce their overall risk.

There are additional services to consider for further protection from title fraud and other title-related concerns. The services you need depend on your situation. For example, you may need legal title services if you are dealing with mechanics liens related to an unpaid contractor who performed remodeling work on your home. You may also need title services if you are refinancing or have property that is vacant for periods at a time.

Mathis Title Company Provides Reliable Home Title Services

Mathis Title Company offers title company services and legal services for buyers, sellers, lenders and real estate agents. We also provide consultancy and advisory services. If you have questions, concerns, want to learn more or get started, contact us today by phone at 703-214-4020 or schedule an appointment online.