Part of my Ann Arbor real estate team is the title company I choose. I need to make certain that my clients get the best service and advice possible. So I partner with Tom Richardson of Liberty Title. In this video, he describes what title insurance is. Simply put, it is information and insurance.
1 Insurance
The insurance portion of title insurance is fairly small. Your title policy basically protects you against a specified category of risks relating to “defects” in the title to the property you are purchasing. These include forgery, mental incompetence of a party, and lack of access to a public right of way or a lien or claim of interest in the property that was not disclosed to you. Your policy covers you for actual financial loss as well as legal fees incurred in defending your title.
(For additional information on title policies, click here to go to links page where you’ll find a link to the American Land Title Association’s Website as well as Liberty’s underwriter’s websites.)
2 Information
Information is the main component of your title work for your Ann Arbor Real Estate. Public records are searched to discover the status of the title to the property–who owns it, any mortgages or liens that encumber the title, the presence of building restrictions or easements that limit the properties use and the status and amount of the property taxes. These records are scattered among county, township, city and village offices. (Over 40 in Washtenaw County!) It is made even more difficult by the fact that documents affecting title to land can be over 100 years old, necessitating a lengthy search through dusty records!
Title research is integrated with your purchase and mortgage commitment documents in a document called the “Commitment for Title Insurance”. The Commitment is a road map to closing. It sets out the specific steps that must be taken (record Deed, record Mortgage, release existing Mortgage, pay taxes etc.) in order to close and insure your transaction. The Commitment also discloses items that affect your use and enjoyment of the property–such as building and use restrictions and easements. The title research and legal analysis contained in your Commitment are a great value – because of specialized experience, LibertyTitle.com can prepare these documents for a fraction of what it would cost to have an attorney do the same work!
If you would like to learn more about this or search Ann Arbor Real Estate, or just request your free EBook.. We are eager to help you with all your Ann Arbor Real Estate questions and needs.
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