An established real estate and refinance title insurance agency will conduct a detailed title examination of public records in order to identify any issues that could affect their property, including ownership discrepancies, liens or unpaid taxes.
The lender’s policy protects them against financial losses caused by title defects; while an owner’s policy covers any additional unforeseen financial losses due to defects that weren’t discovered during the title search process.
Residential
Our residential title searches and title examinations are designed to ensure you have clear, marketable titles prior to closing. A search includes verifying personal identifying information to confirm you as the correct party in the chain of title; verifying there are no liens or judgments against you; as well as discovering restrictions associated with the property that could impede use and development plans – utility easements, CC&Rs, covenants can all come up when performing our preliminary title reports – it’s also important to review every exception as many items that might appear alarming (such as tax exceptions or general easements) could simply be routine or routine items.
Red flags to watch out for include last-minute changes to wiring instructions or requests sent via unsecure emails. Our escrow officers offer CertifID with insurance protection to guarantee secure wire instructions are followed and that no one else has access to your account.
Commercial
Title insurance protects both investors and lenders in commercial real estate transactions from financial loss, covering past issues which were missed during due diligence, such as unpaid property taxes or ownership disputes, while providing future coverage against boundary disputes, environmental impact concerns or zoning conflicts that arise after closing.
Before issuing policies, title companies conduct extensive title research and examination. A title examiner reviews public records such as deeds, tax records, court filings and liens in order to gain an overview of the land’s history; an extensive survey is then necessary in order to detect any existing encumbrances and easements on the property itself. Using this process identifies any title defects and allows sellers to address them prior to closing; this prevents costly title disputes down the line.
After conducting their search and examination, title companies issue commitment letters as well as lender’s and owner’s policies for loan institutions and buyers alike. Lenders’ policies typically cover their investments up to the total loaned. Optionally but highly recommended, is purchasing an owner’s policy which protects you against title defects that might appear post closing and protects equity. Title insurance rates can be factored into purchase price for transactions; most commercial title policies must be agreed upon between buyers, sellers and brokers prior to finalizing transactions.
Refinance
Refinancing can be an excellent way to save money, improve your home or change mortgage terms – yet to do it successfully, all title issues must be resolved to ensure a seamless refinancing experience. This may require conducting title searches and examinations prior to closing; title insurance provides added peace of mind by protecting both lenders and borrowers against costly legal disputes as well as financial losses associated with unexpected property ownership challenges.
Refinancing doesn’t affect your original owner’s policy; however, new lender’s policies may be required. A refinancing process involves paying off and issuing new loans; therefore new lenders need to be protected against title defects that could impact them, such as unpaid taxes, contractor liens, legal judgments or incorrect property descriptions that could impact their rights as a lender.
Lender’s title insurance rates for refinancing transactions may be less expensive than for purchases, depending on your state and region. Furthermore, some title companies may provide discounted or short term rates when refinancing with them.
Escrow
When purchasing or refinancing, escrow is used as a neutral third party to manage funds and documents for participants in a transaction. Escrow protects participants in this way by holding all assets, funds and documents until contractual milestones have been met. We offer comprehensive escrow services, such as conducting thorough title searches to verify ownership chain as well as identify outstanding issues such as liens, easements or boundary disputes that must be cleared up prior to closing.
At Title XCO Company of Michigan we specialize in conducting municipal searches, property surveys and working seamlessly with closing requirements to unearth any issues that might impede clear title at closing. We maintain strong relationships with county clerks, surveyors and other officials which expedites this clearance process while documenting every step for full accountability, while providing regular updates regarding balances, findings and impending deadlines.
Lenders typically mandate that buyers purchase title insurance to protect their investment should anything arise with regards to legal ownership of their property. Real estate professionals play a vital role in informing their clients about its benefits, highlighting any possible downsides further down the road and helping clients understand why title insurance should be part of any purchase agreement.
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