When purchasing an Owner’s Title Policy, your property will be insured against prior defects in title, claims and liens up to the insured amount of the policy, usually the sale price. The premium coverage is based on the insured amount (sale price) and is paid in full at settlement.
The protection against claims and liens apply to the period of time prior to your taking of title and does not insure claims and liens going forward after the new deed is recorded in public record.
Included in the costs for title insurance and related services, the following functions are a part of the total process.
- Secure Escrow Services
- Search and examination of subject property for title defects, claims, and liens
- Issue of a Title Commitment detailing property conditions, requirements and insurability
- coordinate clearing of all conditions as detailed in the Title Commitment
- Prepare necessary documents including deed and settlement statement
- If a financed purchase, coordinate lender requirements and documents and issue a Lender Policy
- Conduct final signing of closing documents.
- Disburse all funds
- Record required documents in public records.
- Issue Owners Title Policy to buyer
Refinance and Lender Policies
Why does a lender require a title policy?
When a lender provides financing for the purchase of property, they will require a Lenders Title Policy that will name the lender as the insured to the loan amount. They may also require endorsements, which are additional insured conditions not ordinarily found in a Owners Title Policy. The premium for the lender policy is paid in full at issue of the policy and is usually paid by the buyer / borrower.
The lender will also require a lender policy when a refinance of an existing mortgage or a “line of credit” (HELOC) takes place. A reissue credit may be available to the borrower providing a substantial discount of the premium.
As a part of our title services, ATS will create a detailed settlement statement, execute all loan documents, and disburse funds for both purchase and refinance scenarios.