Question 1

What is "Title"?

Accepted Answer

"Title" refers to the cornerstone of property ownership. It signifies the legal entitlement to possess and utilize a property, subject to regulatory constraints or limitations on its use that may have been imposed by prior owners

Question 2

What is Title Insurance?

Accepted Answer

In essence, title insurance is the application of insurance principles to address the risks inherent in real estate titles.

Question 3

Is Title Insurance Necessary?

Accepted Answer

Absolutely! Title insurance serves as a crucial safeguard against potential financial losses arising from disputes over property ownership rights. Despite thorough title searches, hidden defects may emerge, making title insurance indispensable. Moreover, in addition to covering financial losses, title insurance also covers the expenses associated with defending against any valid claims.

Question 4

How does purchasing a home distinguish itself from other acquisitions?

Accepted Answer

The acquisition of a home stands apart from other purchases primarily due to the unique nature of land. Unlike other properties, land boasts an enduring utility that transcends generations. While owners may come and go, land remains immutable, capable of accommodating countless rights. This exceptional characteristic has long fascinated legal experts, leading to the development of a distinct body of laws governing land ownership. These intricate laws establish various rights in land, rendering ownership devoid of mathematical certainty due to their sheer complexity and multitude.

Question 5

Will Title Insurance Required by the Lender Suffice?

Accepted Answer

Not necessarily. There are two distinct types of Title Insurance, and while your lender may mandate the purchase of a Lender’s Policy, it primarily safeguards the financial institution's interest by ensuring a valid lien on the property. Although most lenders necessitate this insurance and typically pass on the cost to the borrower, it may not fully protect you.
Conversely, an Owner’s Policy is tailored to shield you from title defects preexisting the policy's issuance. These defects, such as improper estate proceedings or pending legal actions, pose a significant risk to your equity. In the event of a valid claim, your owner’s title policy not only covers financial losses up to the policy's face amount but also encompasses the entire expense of defending your title in legal proceedings.

Question 6

What Constitutes a Title Defect?

Accepted Answer

A title defect refers to any issue within the entirety of a real estate's ownership that could impede the owner's "peaceful enjoyment" of the property or potentially result in the loss of any part of the property.

Question 7

Doesn't the Contract Provision for Good Title Protect Me?

Accepted Answer

While the contract provision stipulating the sale subject to the property's good title may offer some level of protection, it primarily implies that the seller warrants the title's integrity. However, if anything were to occur to challenge the title, your recourse would be against the seller, potentially relying on their financial capability to address the issue. It's important to note that such a provision typically does not cover attorney’s fees and expenses incurred in rectifying title defects.

Question 8

Is the Real Estate Broker's Assurance of a Good Title Sufficient?

Accepted Answer

While a real estate broker may assert that the title is sound, it's crucial to recognize that absolute certainty regarding a clean title is unattainable. Despite assurances provided by the broker, there's always a level of uncertainty surrounding title integrity. Therefore, relying solely on the broker's affirmation may not provide adequate reassurance regarding the title's cleanliness.

Question 9

What Occurs if My Home, Covered by Title Insurance, Faces a Challenge?

Accepted Answer

In the event of a title challenge, you would promptly inform the title insurance company, which would then undertake the defense of your title, even if legal action ensues. Importantly, the title company assumes all associated expenses, providing you with comprehensive protection and peace of mind throughout the process.

Question 10

What is the Cost of Title Insurance?

Accepted Answer

The one-time premium for title insurance correlates directly with the value of your home. Generally, it is less costly than your annual auto insurance premium. This expense is paid just once, at the time of purchasing your home. However, it offers continuous and comprehensive coverage for as long as you or your heirs retain ownership of the property.

Question 11

Can Kelly Title Group Manage the Closing Process?

Accepted Answer

Absolutely. At Kelly Title Group, we serve as a centralized hub for all involved parties, streamlining the closing process. Our responsibilities include gathering required documents, ensuring compliance with the lender’s title instructions, and arranging for the accurate payment and distribution of funds. Rest assured, we are fully equipped to assist you from the inception of your transaction to its successful conclusion.

Question 12

What Documents are Required at Closing?

Accepted Answer

For Buyers:
 • Buyer's copy of the purchase agreement
 • Cashier's check covering the closing costs
 • Evidence of insurance purchase for fire, casualty, etc.
 • Photo identification (such as a passport, driver’s license, or state-issued ID card)
For Sellers:
 • Seller's copy of the purchase agreement
 • Any unrecorded instruments impacting the title
 • Proof of satisfaction for any mechanics' liens, chattel mortgages, judgments, or mortgages paid before closing
 • Photo identification (such as a passport, driver’s license, or state-issued ID card)
It's advisable to confirm these requirements with your escrow officer prior to the closing date.

FAQ