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1. |
What is a title? |
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A title is
the foundation of property ownership. It is
the owner's right to possess and use the
property. |
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2. |
What is title insurance and why do I need
it? |
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We at
SELECT TITLE would like to take a moment to inform
you of some of the procedures and
requirements you will encounter as a Seller
or Borrower.
Title Insurance affords protection from past
events which may or may not be a part of the
public records, but that can adversely
effect a new owner’s interest in the
property being sold to them.
Title Insurance protects against matters of
public record, plus hidden title defects,
such as fraud, forgery, incompetence or
missing heirs, that even the most diligent
title search may not discover.
Some states closely regulate rates. Others
permit open competition, often resulting in
significant differences between title
insurers on rates and coverage. In New
Jersey, rates are regulated by the
Department of Banking and Insurance. |
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3. |
Why is transferring a title in real
estate different from transferring the title
to other items, such as a car? |
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Because land is permanent and can have many
owners over the years, various rights in
land may have been acquired by others (such
as mineral, air, or utility rights) by the
time you come into possession of it, even if
the land has never before been built upon.
So, in order to transfer a clear title to a
piece of land, it is first necessary to
determine whether any rights are
outstanding. |
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4. |
What is a title search? |
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A title search is a detailed examination of
the historical records concerning a
property. These records include deeds, court
records, property and name indexes, and many
other documents. The purpose of the search
is to verify the seller's right to transfer
ownership, and to discover any claims,
defects and other rights or burdens on the
property. |
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5. |
What kind of problems can a title search
reveal? |
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A title search can show a number of title
defects and liens, as well as other
encumbrances and restrictions. Among these
are unpaid taxes, unsatisfied mortgages,
judgments against the seller and
restrictions limiting the use of the land. |
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6. |
Are there any problems that a title
search cannot reveal? |
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Yes. there are some "hidden hazards" that
even the most diligent title search may
never reveal. For instance, the previous
owner could have incorrectly stated his
marital status, resulting in a possible
claim by his legal spouse. Other "hidden
hazards' include fraud and forgery,
defective deeds, mental incompetence,
confusion due to similar or identical names
and clerical errors in the records. These
defects can arise after you've purchased
your home and can jeopardize your right to
ownership. |
