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Liberty Mortgage, Inc.
509 W. McKinley Avenue
Mishawaka, Indiana 46545
Telephone 257-0629
or 888-568-1786
Fax 574-257-0632
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The Title
Owning land is one of themost precious values of freedom enjoyed in this country.
You can buy it, sell it, invest in it and trade is as you see fit. But any change in ownership, to be
legal, require a formal exchange of title (deed).
A deed is a written document that creates or
transfers an interest in a property. When recorded, the deed puts the world on notice of the estate or
ownership of an interest in property - it is not a complete history of the title to to property it conveys.
To learn the history of a property and see how it may affect the current ownership, it is necessary to
conduct a thorough examination of the title.
The process of examining the title begins with locating
the deed of the current owner and then researching backward and forward in time through the land records
to determine what, if any, limitations there may be to the ownership, use and enjoyment of the property.
Court dockets are then reviewed to determine if any of the prior or current owners were involved in legal
proceeding that could affect title to future owners. In addition, assessment records must be checked
to determine the status of taxes and other municipal fees that can be levied against property. Those
findings are then reviewed; and based on this final report, the settlement agent prepares a title insurance
binder which outlines the scope and limitations of the tile insurance coverage. Findings from either
the search of the court dockets or assessment records, such a s judgement against a previous owner, may
indicate that other parties may have a legal interest in or a claim against the property.
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Title Insurance
One of the most frequently asked questions at closing is "what is title insurance?"
This question arises because the buyer is required to pay for title insurance for the lender - which
is mandatory and decides whether to purchase owner's coverage - which is optional.
Unlike other
kinds of insurance that protect against losses from future events, title insurance affords protection
from past events which may or may not be part of the public records. No matter how extensive and exacting
the title search may be, the possibility of hidden risks remains. Although rare, these hidden risks,
if found after the loan has closed, could affect your ownership rights to the property. Some of these
hidden risks are listed below:
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Claims of missing heirs
Forgeries
Clerical errors
Fraud
Misinterpreted wills and trusts
False
personations
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Improperly probated wills
Confusion due to similar names
Unsatisfied claims not shown in the records
Deeds executed under expired of false power of attorney
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Because lenders understand the potential impact of the hidden risks of any real estate transaction,
they require a title insurance policy to protect the amount of money they loan for the purchase of the
property. These hidden risks make the purchase of title insurance for yourself a most prudent and inexpensive
one time investment.
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More about the loan process . . . .
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