Title Insurance FAQs


1. What is title?

The legal right to ocupy a home you have purchased. The legal right is documented in a deed.

2. Why do you need title insurance?

It protects against the loss of value from defects such as fraud, forged signatures, liens, and documentation errors, to name a few.

3.How does title insurance protect you? The lender?

For a one-time payment of premium you are protected as long as you or your heirs retain an interest in the property with an owner's policy of title insurance. The lender's policy protects the lender that financed a part of the property against loss caused by defects in the title.

4. Why do I need title insurance on a brand new house? On a refinance?

Protect you against the possibility of the land your home is on being owned by someone else; clarifies property rights, and insures there are no unidentifiable easements.
Refinance is usually offered at a reduced rate and assures the lender that you own the property. The lender has first position in any retribution.

5. What is escrow and who's handling it for you?

A settlement service of escrow describes the process of a third party holding money until the closing. The settlement agent also holds down payment and the lender's proceeds as well...

6. What is the closing?

The point at which all the documents have been signed, funds disbursed, deed and mortgage recorded is referred to as the closing. After the closing, the house is yours.

7. Do I need to employ the services of an attorney in order to close on a home?

No. Whether you retain a lawyer or not is up to you. It's your decision. (please refer to OPINION 26 in the contract.) In parts of New Jersey, it is traditional to use the services of an attorney to review the contract of sale, order title and transact the closing for the buyer and seller for a fee. In other parts of New Jersey, settlement agents, who represent the title company, are secured to transact the closing. Often they are attorneys; many times they are settlement agents working for a title company. There is a fee of $325, (state regulated for settlement agents), to transact the closing.