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The Benefits of Enhanced Title Insurance Coverage

Mon, 20 Apr 2026 20:42:09 GMT

A home purchase is often the most significant financial investment people make in their lifetime, which makes protecting that investment a critical priority. When we help clients finalize their real estate transactions, we routinely emphasize the necessity of securing comprehensive coverage, including the specific advantages of title insurance in Dayton, Ohio . While standard policies provide a strong foundational layer of defense against known historical public record defects, an ALTA Homeowner’s Policy of Title Insurance (Enhanced) is specifically designed to provide broader, more modern protection for today’s homeowners.

With enhanced title insurance in place, you gain peace of mind knowing your financial interest in the property is safeguarded against a much wider array of potential risks. We always want our clients to understand that a thorough title search, while essential, simply cannot uncover every conceivable future threat to your property rights. By choosing enhanced coverage, we ensure that you are protected not just against issues that occurred before you bought the home, but also against several specific situations that might arise long after closing day.

Broader Protection Against Post-Policy Forgeries

One of the most valuable advantages we see with enhanced title insurance is its robust protection against post-policy forgeries. Under a standard policy, your coverage is generally limited to defects, fraud, and forgeries that occurred before the date your policy was issued. However, enhanced coverage actively protects your property rights if someone attempts to forge your signature on a deed or mortgage after you have already taken ownership of the home.

We find this forward-looking protection particularly reassuring because real estate fraud schemes have become increasingly sophisticated in recent years. If a bad actor attempts to fraudulently transfer your property or take out a loan against your equity, an enhanced policy steps in to defend your title. Your policy helps cover necessary legal defense costs and potential financial losses, ensuring you never have to fight a fraudulent claim entirely on your own.

Coverage for Building Permit and Zoning Violations

Another significant benefit we highlight for property buyers is the coverage provided for unpermitted work and zoning violations committed by previous owners. Standard title policies typically exclude issues related to building codes or local zoning laws, leaving you financially responsible if the city forces you to remove or remediate illegal structures. An enhanced policy specifically offers protection if you are required to remove an existing structure—like a deck or an addition—because it was built without the proper building permits by a previous owner.

Furthermore, this coverage extends to specific zoning violations, protecting you if your property's existing use violates local zoning ordinances at the time of purchase. We know that inheriting another person's unpermitted construction can be a devastating financial burden for a new homeowner. Having this layer of enhanced protection means we can assure you that unexpected code enforcement actions regarding past modifications will not derail your financial stability.

Defense Against Encroachments and Boundary Disputes

Enhanced title insurance also offers superior protection regarding property boundaries and structural encroachments that standard policies often miss. If we discover that a neighbor builds a structure that crosses onto your property line after your policy is issued, enhanced coverage provides the legal and financial resources needed to resolve the dispute. Standard coverage typically only applies to boundary issues that existed at the exact moment you purchased the property, requiring an expensive, updated boundary survey to even qualify for basic protection.

Additionally, if it turns out your own home's existing structures accidentally encroach upon a neighboring property or a utility easement, your enhanced policy helps mitigate the fallout. We consider this coverage indispensable because boundary disputes can quickly escalate into lengthy, expensive legal battles. Knowing your policy will cover legal defense fees and necessary structural removals gives you the ultimate assurance that your territorial rights remain completely secure.

Securing Your Long-Term Property Rights

Investing in a home requires a massive commitment, and we firmly believe that your protection should reflect the magnitude of that investment. While no one wants to imagine severe property disputes or fraudulent claims threatening their home, the reality is that title issues can emerge entirely unprompted. Upgrading to an enhanced title policy is a proactive, secure choice that shields you from both historical errors and unforeseen future complications. Ultimately, this expanded coverage allows us to confidently hand over the keys, knowing your property rights are fully protected for as long as you own the home.

Frequently Asked Questions About Title Insurance

What is the main difference between standard and enhanced title insurance?

Standard title insurance primarily protects you against historical title defects, such as past liens or recording errors that occurred before you purchased the property. Enhanced title insurance expands this safety net to include protections against specific future events, such as post-purchase forgery, unpermitted work by previous owners, and future neighbor encroachments.

Does enhanced title insurance require a one-time fee or annual payments?

Like standard coverage, an enhanced title insurance policy requires only a single, one-time premium paid at your real estate closing. There are never any ongoing annual premiums, and your comprehensive coverage remains fully active for as long as you or your heirs hold an interest in the property.

At Home Services Title, we pride ourselves on protecting your most valuable investments with comprehensive title solutions. We work diligently to guide buyers, sellers, and lenders through seamless real estate transactions with complete confidence and trust. Please contact us today to learn exactly how we can safeguard your property rights for the future.

Why Title Insurance is Essential for Your Property Investment

Tue, 17 Mar 2026 20:19:41 GMT

A home purchase often represents the most significant financial investment a person will make. As you navigate the complexities of this transaction, you will encounter various steps designed to protect this substantial asset. One of the most critical, yet frequently misunderstood, of these protections is title insurance. It serves as a fundamental safeguard for your ownership rights, providing a layer of security against unforeseen issues that could jeopardize your claim to the property. Understanding its role is paramount for any prospective homeowner.

At Home Services Title, we believe in empowering our clients with clear, comprehensive information. This article will explain the essential nature of title insurance. We will detail what a title is, outline the risks associated with a defective title, and clarify the distinct protections offered by both lenders' and owners’ policies. Our goal is to provide you with the confidence and knowledge needed to secure your investment effectively.

Understanding the Foundation: What is a Property Title?

Before delving into the specifics of insurance, it is crucial to understand what a "title" is. A property title is not a physical document but a legal concept. It represents your legal right to own, use, and dispose of a piece of real estate. When you purchase a property, you are buying the title from the seller, which grants you ownership.

The evidence of this ownership is found in public records, which document the history of the property's ownership, or its "chain of title." An ideal chain of title is a clear, unbroken sequence of ownership transfers from the original owner to the current seller.

The Role of a Title Search

To verify the seller's right to transfer ownership, a title professional conducts a thorough title search. This is an in-depth examination of historical records related to the property. These records, typically held at county courthouses or land registries, include deeds, mortgages, court judgments, tax records, and other recorded documents.

The purpose of this search is to uncover any potential issues, or "defects," that could affect the title. These defects can cloud the title, creating uncertainty about your ownership rights. Common issues discovered during a title search include:

Outstanding Liens : A lien is a legal claim against a property for an unpaid debt. This could be from an unpaid mortgage, a contractor who was not paid for work (a mechanic's lien), or unpaid property taxes. If a lien is present, the creditor could potentially force the sale of your property to satisfy the debt.
Easements : An easement grants another party the right to use a portion of your property for a specific purpose, such as a utility company's right to access power lines. Some easements are normal, but unrecorded or unknown easements can restrict your use of the land.
Errors in Public Records : Clerical or filing errors made at the county recorder's office can have significant consequences for a property's title. A simple mistake in a legal description or name can create ownership confusion.
Fraud or Forgery : Documents in the chain of title could have been forged, or a previous transaction might have involved a person misrepresenting their identity. This could invalidate prior sales and call your ownership into question.

A comprehensive title search is the first line of defense in identifying these risks before you complete your purchase. It provides a detailed picture of the property's legal history and allows for many issues to be resolved before closing.

The Risks of a Defective Title

While a title search is a meticulous process, it cannot uncover all potential problems. Unlike other forms of insurance that protect against future events, title insurance protects you from past occurrences that were not discovered during the initial search. These "hidden risks" can emerge months or even years after you have moved into your new home, presenting serious financial and legal threats.

A defective title can lead to devastating consequences for a homeowner. You could face costly legal battles to defend your ownership, or in a worst-case scenario, you could lose your property entirely while still being responsible for the mortgage.

Hidden Risks Not Found in a Title Search

Some of the most dangerous title defects are those that cannot be found in public records. These hidden hazards underscore the necessity of title insurance. Examples include:

An Undisclosed Heir: A previous owner may have passed away, and an unknown heir with a rightful claim to the property could appear years later.
Mistakes in Wills: A will might have been improperly interpreted, or a more recent will could surface, changing the distribution of the property.
Mental Incompetence or Minority: A prior deed may have been signed by a person who was not mentally competent or who was a minor, making the transfer invalid.
Marital Status Misrepresentation: A previous owner may have falsely claimed to be single when they were married. Their spouse could then emerge with a claim to the property.

Without the protection of an owner's title insurance policy, the financial burden of resolving these issues falls directly on you. The legal fees required to defend your title can quickly amount to tens of thousands of dollars, regardless of the outcome.

Lender’s vs. Owner’s Title Insurance: Clarifying the Coverage

When you secure a mortgage to purchase a home, your lender will require you to purchase a lender's title insurance policy. This can sometimes create confusion, leading borrowers to believe they are fully protected. However, it is essential to understand that a lender's policy protects only the lender's financial interest in the property, not your own.

The Lender’s Title Insurance Policy

A lender's policy guarantees that the lender has a valid and enforceable lien on the property. If a title dispute arises, the insurance company will defend the lender's claim. The coverage amount for this policy typically matches the amount of the mortgage loan. As you pay down your loan, the coverage decreases. If you were to lose your property due to a title defect, the lender's policy would pay off the remaining mortgage balance, but it would provide no financial compensation to you for your lost equity or down payment.

The Owner’s Title Insurance Policy

An owner's title insurance policy is purchased for your own protection. It insures you, the homeowner, against losses arising from title defects. This policy is purchased with a one-time premium paid at closing and remains in effect for as long as you or your heirs own the property. The coverage amount is usually equal to the full purchase price of the home.

Should a covered title issue arise, the owner's policy provides two key benefits:

Legal Defense: The title insurance company will cover the costs of hiring legal professionals to defend your title in court.
Financial Loss Reimbursement: If the legal defense is unsuccessful and you lose your property or your equity in it, the policy will reimburse you for your financial loss up to the face amount of the policy.

Purchasing an owner's policy is a small, one-time investment that provides lasting peace of mind and protection for your most valuable asset.

Securing Your Investment

A home is more than just a place to live; it is a significant financial asset. Protecting your ownership rights is a non-negotiable part of the homebuying process. While a title search provides an essential look into a property's past, it cannot guarantee a flawless title. Hidden risks from years ago can surface unexpectedly, threatening your investment and financial security.

An owner's title insurance policy is the ultimate safeguard. It stands as a firm defense against past errors, fraud, and undiscovered claims that could challenge your ownership. For a one-time fee, you secure invaluable protection for as long as you own your home. We strongly encourage every property buyer to secure an owner's policy to ensure their investment is fully protected. This is the definitive step in establishing clear and confident ownership of your new property.

Frequently Asked Questions (FAQ)

How much does an owner's title policy insurance cost?

The cost is a one-time premium paid at closing. The amount is typically based on the home's purchase price and varies by state and provider. It generally represents a small percentage of the total transaction cost.

Isn't the lender's policy enough protection?

No. A lender's policy exclusively protects the lender's financial interest. It does not cover your down payment or any equity you have in the home. Only an owner's policy directly protects you, the homeowner.

If I'm buying a newly constructed home, do I still need title insurance?

Yes. The land on which the new home is built has a history. There could be prior liens from contractors who worked on the land or unresolved ownership claims from previous owners of the vacant lot. Title insurance protects against these and other pre-existing issues.

How long does the owner's title insurance coverage last?

An owner's title insurance policy protects you and your heirs forever, for the period of time you owned the property. There are no annual premiums or renewal fees.

The team at Home Services Title is dedicated to providing clear guidance and comprehensive title and settlement services to ensure a smooth and secure real estate transaction. Our experts are committed to protecting your property investment with professionalism and care. Contact us to get started.

New FinCEN Reporting Rules

Tue, 24 Feb 2026 22:16:52 GMT

Beginning March 1, 2026, new FinCEN residential real estate reporting requirements will take effect. Key highlights include:

Applies to certain non-financed transfers of residential real property involving entities or trusts
Requires filing of a standardized Real Estate Report with FinCEN for reportable transfers
Covers transactions closing on or after March 1, 2026
Filing deadline is generally 30 to 60 days after closing
Requires reporting of property details, transferee information, beneficial ownership, signing individuals, and payment information
Only one designated reporting person per transaction is responsible for filing
Reports are maintained in a secure FinCEN database and are not publicly accessible

Click below to review or download the full FAQ guide for complete details.

7 Common Title Issues and How to Avoid Them

Wed, 29 Oct 2025 21:20:33 GMT

Purchasing a property is a significant financial commitment, representing one of the largest investments many people will make. A crucial part of this process is ensuring the property's title is clear of any defects. A title is the legal right to own a property. However, various issues can arise that cloud the title, potentially jeopardizing your ownership rights. Understanding these potential problems is the first step toward safeguarding your investment.

A thorough title search is conducted to uncover any such issues before the closing of a real estate transaction. This examination reviews public records to verify the seller's right to transfer ownership and to discover any claims, liens, or encumbrances on the property. Despite this detailed process, hidden hazards can still emerge after the purchase is complete. This is where an owner's title insurance becomes essential, offering protection against unforeseen title defects. By being aware of the most frequent complications, you can better appreciate the importance of a clear title and the protections available.

Public Record Errors

Clerical or filing errors in public records can have serious consequences for a property's title. These mistakes, though often unintentional, can affect the deed or survey of your property. For example, a document might be indexed incorrectly at the county recorder's office, making it difficult to find during a title search. A legal description could contain a typographical error, or a past deed might list the wrong name. Such inaccuracies can create confusion regarding ownership and may require legal action to resolve.

Correcting these errors can be a complex and costly process. It often involves filing legal documents to amend the public record, which requires time and legal expertise. To mitigate this risk, a comprehensive title search is performed to identify and address any discrepancies before you take ownership. Furthermore, an owner's title insurance policy provides a critical safeguard, protecting you from financial loss and covering the legal expenses required to defend your title against claims arising from these types of administrative mistakes.

Unknown Liens

A lien is a legal claim against a property for an unpaid debt. While a title search is designed to uncover existing liens, some may go undetected. For instance, a previous owner may have failed to pay a contractor for home improvements, leading the contractor to place a mechanic's lien on the property. Unpaid property taxes, state and federal inheritance taxes, or other outstanding debts can also result in liens being attached to the title.

If an unknown lien surfaces after you have purchased the property, you could be held responsible for the outstanding debt. Creditors can take legal action to force the sale of your home to satisfy the lien. This presents a significant financial risk to the new owner. Securing an owner's title insurance policy is the most effective way to protect yourself from these hidden threats. If a claim arises from a previously unknown lien, the policy will cover the costs of resolving it, thereby protecting your ownership rights and your financial investment.

Illegal Deeds

The chain of title can sometimes be complicated by deeds that were created or transferred illegally. An illegal deed is one that is not legally sound, which can happen for several reasons. For example, a previous sale may have been executed by a minor or a person who was not mentally competent. In other cases, a deed could have been signed by a person with a fabricated power of attorney or someone falsely claiming to be the sole heir of a deceased owner.

These situations can render the transfer of ownership invalid, creating a serious defect in your title. If a past deed is proven to be illegal, it could mean that you do not have a legal right to the property, even if you were unaware of the issue when you purchased it. A detailed title examination helps to verify the legitimacy of past transactions. However, for complete protection against such forgeries or fraudulent transfers, an owner's title insurance policy is indispensable, as it defends your title against claims stemming from these invalid documents.

Missing Heirs

When a property owner dies without a will, the state's laws of succession determine who inherits the property. However, it is possible for rightful heirs to be overlooked or unknown at the time of the owner's death. Years after you purchase the home, a previously missing heir could appear and assert a legal claim to your property. This can lead to complicated legal battles that challenge your ownership.

Similarly, a deceased owner's will may be discovered at a later date, revealing beneficiaries who were not accounted for during the sale of the property. These individuals may have a valid claim to a share of the property, creating a significant title defect. An owner's title insurance policy is designed to protect you in these scenarios. It will cover the legal fees associated with defending your title and compensate you for any financial loss if an unknown heir successfully establishes a claim against your property.

Forgeries and Impersonation

Documents affecting property ownership, such as deeds and mortgage releases, can be forged. Criminals may forge a previous owner's signature on a deed to fraudulently transfer the property to themselves before selling it to an unsuspecting buyer. Similarly, someone might impersonate a property owner to obtain a mortgage and then disappear with the funds, leaving a fraudulent lien on the property.

These fraudulent acts can be difficult to detect during a standard title search because the forged documents may appear legitimate in the public records. If you purchase a property with a title tainted by forgery, your ownership could be challenged by the true owner. Protecting your investment from such sophisticated fraud requires a strong defense. Owner's title insurance offers this protection, covering the costs of legal defense and financial losses that arise from claims related to forged documents or impersonation.

Undiscovered Encumbrances

An encumbrance is a claim or right held by someone other than the property owner that affects the title. This can include undisclosed easements, where a third party has the right to use a portion of your property for a specific purpose, such as a utility company needing access to power lines. There could also be restrictive covenants that limit how you can use your land, such as rules prohibiting certain types of construction or business activities.

While a title search aims to uncover all encumbrances, some may not be properly recorded and can surface unexpectedly. For example, a previous owner may have informally granted a neighbor the right to cross a part of the property, creating a prescriptive easement. If these issues arise after you have closed on the property, they can limit your use and enjoyment of your home. Owner's title insurance protects against financial loss from undiscovered encumbrances and other common title issues that were not identified in the public records.

Boundary and Survey Disputes

Disputes can arise when a property's boundaries are not clearly defined or are inaccurately recorded. A survey conducted for a previous sale might contain errors, leading to confusion about the exact location of property lines. Your neighbor's fence or shed might encroach on your land, or a portion of your driveway could be on their property. These disputes can lead to legal conflicts with adjacent property owners.

An inaccurate survey can also fail to identify easements or other restrictions that affect your property. Resolving boundary disputes often requires a new survey and potentially legal action to establish the correct property lines. An owner's title insurance policy can offer protection in these situations. Certain policies provide survey coverage that protects you against losses resulting from boundary line conflicts, encroachments, and other issues that would have been disclosed by an accurate and recent survey.

Protecting Your Investment

Ensuring a clear title is fundamental to a secure real estate investment. The potential for hidden defects, from public record errors to undiscovered heirs, highlights the importance of proactive protection. An owner's title insurance policy provides a vital defense against these unforeseen risks, offering peace of mind by safeguarding your ownership rights. This one-time purchase protects your investment for as long as you or your heirs own the property.

Frequently Asked Questions About Title Issues

What is the difference between a title search and title insurance?

A title search is an investigation into a property's public records to identify any potential issues with the title, such as liens, ownership disputes, or encumbrances, before a real estate transaction closes. Title insurance is a policy that protects the property owner (owner's policy) or lender (lender's policy) from financial loss due to title defects that were not discovered during the title search. While the search is a preventative measure, insurance provides financial protection against unforeseen problems that may arise after the purchase.

Is an owner's title insurance required when I buy a home?

While a lender will almost always require you to purchase a lender's title insurance policy to protect their financial interest in the property, an owner's title insurance policy is typically optional. However, it is highly recommended. Without an owner's policy, you would be personally responsible for all legal costs and financial losses resulting from any title defects that emerge after you take ownership. An owner's policy is a one-time fee paid at closing that protects your investment for as long as you own the property.

At Home Services Title, we are dedicated to providing clear and reliable title and settlement services for real estate professionals, lenders, and homebuyers. Our experienced team ensures a smooth and secure closing process from start to finish. To learn more about how we can protect your property investment, please contact us today.

Understanding the Closing Process: A Step-by-Step Guide

Wed, 10 Sep 2025 17:38:22 GMT

Purchasing a home represents one of the most significant financial decisions in your lifetime. The closing process marks the final stage of this journey, where ownership officially transfers from seller to buyer. Yet many homebuyers feel overwhelmed by the complexity and number of moving parts involved in closing day.

A successful closing requires careful coordination between multiple parties, including buyers, sellers, real estate agents, lenders, and title companies. Understanding each step helps ensure your transaction proceeds smoothly and protects your investment. This comprehensive guide breaks down the closing process into manageable steps, providing clarity on what to expect and how to prepare for your closing day.

Pre-Closing Preparations and Documentation Review

The closing process begins well before you sit down at the closing table. Approximately 30 days before your scheduled closing date, your lender will order a title search and schedule a property appraisal. During this period, the title company conducts a thorough examination of public records to verify the property's ownership history and identify any potential issues that could affect the transfer of title.

Your title company will review deeds, mortgages, tax records, court judgments, and other legal documents spanning several decades. This meticulous process ensures no outstanding liens, unpaid taxes, or ownership disputes exist that could complicate your purchase. Meanwhile, you'll receive a Closing Disclosure from your lender at least three business days before closing, detailing your final loan terms, monthly payments, and all closing costs. Review this document carefully and compare it to your initial Loan Estimate to identify any significant changes.

Title Insurance and Final Title Examination

Title insurance protects your ownership rights against unforeseen issues that may arise after closing. Unlike other insurance policies that protect against future events, title insurance safeguards against past occurrences that could threaten your ownership. The title company performs a final title examination just before closing to ensure no new liens or encumbrances have been recorded against the property since the initial search.

Two types of title insurance policies are typically issued at closing: a lender's policy and an owner's policy. The lender's policy protects your mortgage company's financial interest in the property, while the owner's policy protects your equity investment. Owner's title insurance provides coverage for issues such as forged documents, undisclosed heirs claiming ownership, survey errors, and clerical mistakes in public records. This one-time premium paid at closing protects as long as you or your heirs own the property.

Final Walk-Through and Closing Day Coordination

The final walk-through typically occurs 24-48 hours before closing and gives you one last opportunity to inspect the property's condition. During this inspection, verify that agreed-upon repairs have been completed, all personal property has been removed, and the property remains in substantially the same condition as when you made your offer. Document any concerns immediately and communicate them to your real estate agent and Ohio closing and escrow professionals.

On closing day, arrive prepared with a government-issued photo ID, proof of homeowner's insurance, and a cashier's check or wire transfer for your down payment and closing costs. The closing agent will guide you through signing numerous documents, including the deed, mortgage note, and various disclosure statements. Each document serves a specific legal purpose in transferring ownership and establishing your loan obligations. Take time to ask questions about any documents you don't understand—the closing agent is there to explain each step and ensure you're comfortable proceeding.

Your Partnership with Professional Title Services

Navigating the closing process doesn't have to be stressful when you work with experienced professionals who prioritize your interests. A skilled title company serves as your advocate throughout the transaction, identifying potential issues early and working diligently to resolve them before closing day. From conducting comprehensive title searches to coordinating with all parties involved in your transaction, professional title services ensure every detail receives proper attention.

The investment in quality title services pays dividends through peace of mind and protection of your property rights. When you choose a reputable title company, you gain access to experienced professionals who understand local real estate practices and maintain strong relationships with lenders, real estate agents, and other service providers. This network of professionals works together to facilitate a smooth closing experience and help you transition seamlessly into homeownership.

What documents will I need to bring to closing?

You'll need to bring several important documents to your closing appointment. Essential items include a government-issued photo ID such as a driver's license or passport, proof of homeowner's insurance showing the property is covered from the closing date forward, and certified funds for your down payment and closing costs in the form of a cashier's check or wire transfer confirmation. Your lender may also require additional documentation such as recent pay stubs, bank statements, or verification of any last-minute deposits to your account.

How long does the closing process typically take?

The entire closing process from contract acceptance to key handover typically takes 30-45 days, though this timeline can vary based on several factors. The closing appointment itself usually lasts 1-2 hours, depending on the complexity of your transaction and the number of documents requiring signatures. Simple cash purchases may close faster, while transactions involving multiple loans, complex financing arrangements, or title issues may require additional time.

At Home Services Title, we understand that buying a home represents a major milestone in your life, and we're committed to making your closing experience as smooth and stress-free as possible. Contact us today to learn how we can help ensure your closing proceeds without complications.

About Us

Sat, 26 Jul 2025 16:57:16 GMT

Securing Your Investment

How Home Services Title Prioritizes Protection, Education, and Seamless Closings:

Since opening our doors in 2002, Home Services Title, LLC has proudly served as Dayton, Ohio’s trusted title company—built on a foundation of integrity, innovation, and an unwavering commitment to our clients. As the real estate landscape evolves, so do the challenges. Today, more than ever, title companies must take a proactive stance in protecting the integrity of every transaction. That’s why at Home Services Title, we've placed security, education, and service at the heart of everything we do.

Putting Security First

Real estate fraud is on the rise nationwide, and our clients' peace of mind is our top priority. We have invested in advanced internal security systems to safeguard every transaction from wire fraud, identity theft, and cyber threats. From encrypted communications to secure closing protocols, we are committed to protecting what matters most—your investment.

Expertise You Can Count On

Unlike many title companies, we do all of our underwriting in-house. That means quicker decisions, fewer delays, and real-time solutions tailored to your unique transaction. With full-time staff attorneys on hand, we're equipped to handle even the most complex title matters with speed and clarity—saving time and reducing risk.

A Seamless Experience, Every Time

Whether you're a homebuyer, seller, agent, or lender, we believe every transaction should be seamless and pleasant from start to finish. Our team is here to answer your questions, meet your deadlines, and deliver a closing experience that inspires confidence.

At Home Services Title, we don't just close deals - we build trust, one transaction at a time.

Want to learn more about how we can serve you?

Visit us at homeservicestitle.com

At Home Services Title, we take the complexity out of title insurance so you can focus on enjoying your new home. For personalized advice and support tailored to Ohio home buyers, contact us today. Our dedicated team is here to protect your property and ensure seamless transactions.

How Title Insurance Protects Home Buyers in Ohio

lisa@homeservicestitle.com (Lisa Terry) — Thu, 03 Jul 2025 18:22:13 GMT

Buying a home is one of the most significant investments you'll make in your lifetime. However, it can come with hidden risks, such as title disputes or ownership challenges, that may surface long after you've closed the deal. That's where title insurance comes in. Whether you're a first-time buyer or an experienced homeowner, understanding the value of title insurance is essential for safeguarding your investment.

This blog explores the importance of title insurance, its role in protecting Ohio home buyers, and how it ensures peace of mind for all homeowners.

What Is Title Insurance?

Title insurance is a protection policy that shields home buyers and their lenders against potential losses arising from title defects. These defects could include previous ownership disputes, errors in public records, undisclosed liens, or fraud. Unlike traditional insurance that protects against future risks, title insurance focuses on addressing issues from the past.

For Ohio residents, title insurance ensures that you can hold onto your property without legal or financial complications. By paying a one-time premium at closing, you secure lifelong coverage for as long as you or your heirs own the home. Plus, title insurance in Ohio offers comprehensive legal defense against claims of ownership, saving you from costly court battles.

Why Is Title Insurance Essential for Ohio Home Buyers?

Title insurance relieves the stress of “hidden” issues that could jeopardize your homeownership. Even after a thorough title search conducted by professionals, some risks may go unnoticed. These include errors in tax records, undisclosed heirs to the property, or forgery of past deeds.

With title insurance in your corner, you’re protected from financial losses resulting from:

Unpaid taxes or liens
Boundary disputes
Clerical errors in property documents
Unrecorded legal judgments

Ohio home buyers, in particular, benefit from peace of mind knowing their largest financial investment is guarded against these risks.

How Title Insurance Makes the Closing Process Smoother

The real estate closing process can be overwhelming, especially with so much paperwork and uncertainty. Title insurance simplifies this process by providing clarity and confidence. A title insurance provider performs an in-depth title search to identify any issues that could delay your transaction.

During the closing, the policy ensures:

Any issues revealed during the title search are resolved before finalizing the deal.
Future claims against the property are handled with minimal impact on the homeowner.
Buyers can move in worry-free, knowing their ownership rights are confirmed.

For an in-depth look, Home Services Title's guide to title insurance in Ohio offers additional insights into why this protection is invaluable.

Long-Term Protections Offered by Title Insurance

One of the standout benefits of title insurance is the long-term protection it provides. Unlike other forms of insurance that require annual renewal, title insurance is a one-time purchase. For as long as you own your property, the policy protects you against title-related disputes or defects.

Additionally, modern title insurance policies, such as enhanced options, come with expanded protections. These added benefits may include coverage for zoning violations, building permit issues, and even post-policy encroachments.

This kind of comprehensive protection ensures that, no matter what arises years down the line, your rights as a homeowner are secure.

Frequently Asked Questions About Title Insurance

What’s the difference between a lender’s title insurance and an owner’s title insurance?

Lender’s title insurance protects the lender’s financial interest in the property, ensuring the amount of the loan is secure from claims or disputes. On the other hand, the owner’s title insurance protects the buyer’s ownership rights, defending against legal challenges and covering financial losses from hidden defects in the title. While lenders’ policies are mandatory for mortgages, purchasing an owner’s title insurance policy is optional, but highly recommended.

How much does title insurance cost in Ohio?

Title insurance in Ohio is a one-time expense paid during the closing process. The cost is regulated by state law and typically depends on the property’s purchase price. On average, the cost of title insurance for a residential home is far less than an annual auto insurance policy, making it an affordable layer of protection for a significant investment.

LINKS TO COUNTY FRAUD ALERT SYSTEMS

Tue, 21 May 2024 18:31:39 GMT

With deed fraud at an all-time high, it is necessary that we remain active in protecting our greatest asset from the bad guys.

FRAUD ALERT SYSTEM

HOME SERVICES TITLE FLOW CHART

Thu, 02 May 2024 16:50:40 GMT

FIRST………….. Julie opens all new orders. Send your accepted purchase contract to titleorders@homeservicestitle.com

Julie Strader

Order Entry

PH: 937-705-1167 FAX: 855-747-2627

julies@homeservicestitle.com

Next………. Sami & Levi collect and track your Buyer/Seller Information sheets. They also receive repair invoices, commission splits, home warranties, etc. Email them directly or use the TEAM email dotloop@homeservicestitle.com

Sami Howard

Closing Coordinator

PH: 937-705-1162 FAX: 855-758-2858

samih@homeservicestitle.com

Levi Stewart

Closing Coordinator

PH: 937-705-1152 FAX: 855-400-9664

levis@homeservicestitle.com

NEXT………. if you hear from Rebecca, Vanessa, or Bridget we may have a title issue to resolve so please respond ASAP.

Bridget Carver

Team Leader – Title Underwriter

PH: 937-705-1164 FAX: 855-839-0957

bridgetc@homeservicestitle.com

Ashleigh Heikkila

Title Underwriter

PH: 937-705-1156 FAX: 855-687-9670

ashleighth@homeservicestitle.com

Vanessa Vogel

Title Underwriter

PH: 937-705-1163 FAX: 866-463-2934

vanessav@homeservicestitle.com

READY SET CLOSE! Sami Moore and Levi Stewart coordinate all our closings and signings. Email them directly or at scheduling@homeservicestitle.com to initiate scheduling your closing with Home Services Title.

YOU’RE ALMOST HOME! Kelly Burrows, Jarren Porter and Macy Chessman prepare preliminary closing disclosures and collaborate with the lender on the final closing disclosure and package. The Final ALTA Statement will then be sent to the listing agent and selling agents.

Jarren Porter

Processor

PH: 937-705-1141

jarrenp@homeservicestitle.com

Kelly Burrows

Team Lead/Senior Processor

PH: 937-705-1151

kellyb@homeservicestitle.com

Macy Chessman

Processor

PH: 937-705-1150 FAX: 855-532-6013

macyc@homeservicestitle.com

WHO will you see at the closing table? You can email our closers at closers@homeservicestitle.com . Note that our closer assignments can change daily, even multiple times daily, depending on our closing schedule.

Lisa Terry

Closing Operations Manager/Owner

PH: 937-705-1148 CELL: 937-478-2619

lisa@homeservicestitle.com

Alek Klopf

Team Lead/ Senior Closing Officer

PH: 937-705-1170 CELL: 937-681-6692

alekk@homeservicestitle.com

Dennis Terry

Closing Officer

PH: 937-705-1159 CELL: 937-477-0574

dennist@homeservicestitle.com

Kyle Thacker

Closing Officer

PH: 937-705-1157 CELL: 937-830-0302

kylet@homeservicestitle.com

Amy Russell

Closing Officer

PH: 937-705-1158 CELL: 937-670-0219

amyr@homeservicestitle.com

HOW TO PREPARE FOR CLOSING

Tue, 30 Apr 2024 10:37:11 GMT

Prepare both buyers and sellers for closing.

Buyers

Cashier's check, certified check or wiring instructions for funds due to settle.
Proof of purchase of homeowner's insurance, if your lender requires the home be insured.
Valid non-expired PHOTO identification (e.g. passport, driver's license, or state ID)
Original documents requested by your Lender or Title Company

Sellers

Valid non-expired PHOTO identification (e.g. passport, driver's license, or state ID)
Wiring instructions, if you need to provide any funds to settle on your new purchase OR if you would like your proceeds wired. **Account must be in the name the property is currently deeded to**

7 REASONS WHY BUYERS NEED TITLE INSURANCE

Tue, 30 Apr 2024 10:37:10 GMT

BUYING A HOME IS AN EXCITING AND EMOTIONAL TIME FOR MANY PEOPLE. To help you buy your home with more confidence, make sure you...get Owner’s Title Insurance. HERE’S WHY IT’S SO IMPORTANT FOR YOU:

PROTECTS YOUR LARGEST INVESTMENT A home is probably the single largest investment you will make in your life. You insure everything else that’s valuable to you—your life, car, health, pets, etc., so why not your largest investment? For a onetime fee, owner’s title insurance protects your property rights for as long as you or your heirs own your home.

REDUCES YOUR RISK If you’re buying a home, there are many hidden issues that may pop up only after you purchase your home. Getting an owner’s title insurance policy is the best way to protect yourself from unforeseen legal and financial title discrepancies. Don’t think it will happen to you? Think again.

Unexpected title claims include:

outstanding mortgages and judgments, or a lien against the property because the seller has not paid his taxes
pending legal action against the property that could affect you
an unknown heir of a previous owner who is claiming ownership of the property

YOU CAN’T BEAT THE VALUE Owner’s title insurance is a one-time fee that’s very low relative to the value it provides. It typically costs around 0.5% of the home’s purchase price.

COVERS YOUR HEIRS As long as you or your heirs own your home, owner’s title insurance protects your property rights.

NOTHING COMPARES Homeowners insurance and warranties protect only the structure and belongings of your home. Getting owner’s title insurance ensures your family’s property rights stay protected.

8 IN 10 HOMEBUYERS AGREE Each year, more than 80% of America’s homebuyers choose to get owner’s title insurance.

PEACE OF MIND If you’re buying a home, owner’s title insurance lets you rest assured, knowing that you’re protected from inheriting any existing debts or legal problems, once you’ve closed on your new home.

AGENT CHECKLIST for CLOSING

Tue, 30 Apr 2024 10:37:09 GMT

Home Services Title wants to make your real estate transaction as smooth as possible.

Help us work together as a team to put the pieces together for an effortless closing:

Email, fax or deliver the contract and all addenda to Home Services Title as soon as possible.
Provide Home Services Title with the real estate license numbers for both you and your broker.
Provide Home Services Title with accurate phone numbers and mailing addresses for your clients (especially on investment properties).
Advise Home Services Title in advance if your client has any special needs (physical limitations, time constraints, location constraints, special life circumstances, power of attorney, etc.).
Encourage your clients to respond to any requests for information from Home Services Title. A lack of requested information such as new lender, loan payoff information and insurance agent can cause delays.
When performing a split closing, provide the other title company information to Home Services Title as soon as possible. Home Services Title will coordinate with the other company to ensure a smooth transaction.
Let us know if your client has travel plans, may be otherwise unavailable on the anticipated closing date, or if a courtesy signing may be necessary at another of our offices.
Advise Home Services Title in advance if your client will be using a Power of Attorney. Powers of Attorney must be approved in advance by the title company (and the lender if a buyer intends to use a Power of Attorney).
Review the title commitment/preliminary report when you receive it. If something seems out of the ordinary, call your escrow officer.
Keep the lender in the loop. Just as with escrow, make sure the lender has received all addenda and invoices.
Email, fax or deliver invoices for repairs (supplies and/or labor), commission, or any other items to Home Services Title as soon as possible. Make a note as to who is responsible for paying the bill.
Encourage buyers to respond promptly to lender requests for information and documentation.
Ensure all invoices, addenda and other important information is delivered to the lender and escrow officer at least two weeks prior to your anticipated closing date. This will allow them to coordinate on the preparation of the Closing Disclosure.
Two weeks before close of escrow, verify the lender has everything needed to prepare the Closing Disclosure.
Review the estimated settlement statement when you receive it. If something does not match your understanding of the transaction, call your escrow officer.
Notify your client that funds owed at closing will typically need to be in the form of a wire transfer.
Encourage your client to remain focused and attentive during signing and limit distractions. If parents are bringing their children to the signing remind them to bring a book, toy, or activity for them.
Remind your client that real estate transactions are complicated and may take longer than anticipated. Patience is vital to a smooth transaction.

Every closing and title company is unique. If you have closing questions or concerns please contact your escrow officer

OWNERS TITLE INSURANCE, WHY?

Tue, 30 Apr 2024 10:37:08 GMT

Protect YOUR Investment

You ensure everything else valuable to you - your life, car, health, etc., why not your largest investment? For a one-time fee, owner's title insurance protects your property rights from unforeseen legal and financial title discrepancies for as long as you or your heirs own your home.

WHICH POLICY IS RIGHT FOR ME

An Owner's Policy offers basic coverage, while a Homeowners Policy costing 15% more, provides expanded coverage. The amount of coverage offered on the property increases over time as the value of the property goes up. (10% per year for the first 5 years)

OWNERS POLICY OF TITLE INSURANCE

Coverage against common title defects including
Undisclosed heirs
Mistakes in recording
Errors in tax records
Someone claiming ownership interest
Forgery or impersonation
Someone having the right to limit your use of the land
Erroneous or inadequate legal descriptions

HOMEOWNERS POLICY OF TITLE INSURANCE

All coverage under the Owners Policy for a total of 32 covered risks including

Zoning Violations
Subdivision Law Violations
Unmarketability of Your Title
Post-Policy Forgery
Easements
Building permitviolations
Lack of vehicular and pedestrian access
Your neighbor builds any structures after the policy date that encroaches onto the land
And MORE

REMINDERS FOR BUYERS

Tue, 30 Apr 2024 10:37:06 GMT

WHAT HAPPENS AFTER SIGNING?

The loan documents are returned to your lender for review. Once the lender authorizes us to close escrow, we will contact you or your agent with the good news.

WHAT WILL I GET IN THE MAIL AFTER CLOSING?

You will receive your final Settlement Statement - be sure to keep it for tax purposes. You will also receive a title policy and recorded deed showing your ownership. Finally, you will receive an information package from your new lender.

WHEN DO I GET MY KEYS?

Your real estate professional will handle the key exchange. It typically happens once your lender allows us to record the transaction.

HOW DO I MAKE MY FIRST PAYMENT?

You should have received a temporary payment coupon with your loan documents at the signing - you may need to use it to make your first payment. Within a few weeks, you should receive coupons /statements directly from your lender.

UTILITIES

You will need to contact the utility company to transfer utilities into your name before you move in. The seller’s final utility bill is not handled through escrow; you must address the transfer directly with the utility company and the seller so that you are not billed for those services.

Congratulations - You are a new homeowner! We appreciate working with you. Please feel free to call us with any questions.

REMINDERS FOR SELLERS

Tue, 30 Apr 2024 10:37:06 GMT

Things to consider before closing.

ARE YOUR LOAN PAYMENTS WITHDRAWN AUTOMATICALLY?

If so, you may want to contact your current lender and ask them to stop any automatic withdrawals. Sometimes communication that your loan has been paid off can be slow in reaching the department in charge of automatic withdrawals.

HAZARD INSURANCE (FIRE,FLOOD,ETC.)

After recording is confirmed, you should talk to your insurance agent about canceling any insurance policies affecting the property.

FINAL SETTLEMENT STATEMENT

After closing and recording, you will receive your final settlement statement in the mail. Please keep it for tax purposes.

KEY EXCHANGE

Your real estate professional typically handles the key exchange.

UTILITIES

Contact the utility companies to remove your name and close out the accounts. The final utility bill may not be paid through escrow; you will need to make arrangements directly with the utility company to cover payment for charges incurred between your last statement and the closing date.

WHAT HAPPENS NEXT?

Once all parties involved with the transaction have given their approval, we will record and disburse all funds, including your proceeds.

ESCROW ACCOUNT

If you pay taxes and insurance to your current mortgage holder you may be entitled to a refund of the balance on that account. Mortgage companies typically process refunds within 30 day of closing. Make sure they have your forwarding address to ensure receipt of the refund.

Thank you for choosing Home Services Title for your title and escrow needs! We appreciate working with you - please feel free to call us with any questions.

SPOT THE FRAUD

Tue, 30 Apr 2024 10:37:05 GMT

Tips to Detect Fraud

Sender's email address is different (even slightly) from a prior confirmed email address. Tip! When reading email from a mobile device, click on the senders name to view the complete email address.
Changes to wiring instructions. Our bank is always The Huntington National Bank
Fear-based language that expresses a negative outcome, such as "concern, "don't’, ‘prevent’, or "avoid"
Font or type size that is different from the rest of the document.
Unusual grammar, incorrect punctuation, odd spacing or capitalization may be an indication of someone trying to commit fraud!
Words indicating friendship or trust such as "friend" or Pal, or that are overly thankful or complimentary.
Beware of last-minute closing changes and rushes.

GOOD FUNDS LAW

Tue, 30 Apr 2024 10:37:04 GMT

Understanding the Basics of the Ohio Good Funds Law

What are Good Funds? For transactions involving residential real estate, settlement agents may disburse only when the funds for the transaction qualify as Good Funds, as defined by Ohio statute*.

What are acceptable forms of Good Funds under the Ohio statute? Effective September 29, 2017, the following are the only form of funds a settlement agent may collect and disburse on in connection with a residential real estate transaction:

1. Electronically transferred funds, including wire transfers;

2. Checks: Personal, Business, Certified, Cashier's, Official Check or Money Order. The combined dollar amount

of these items cannot exceed $10,000.00, with the following conditions:

Personal checks from Buyers cannot exceed $1000.00
Personal checks from Sellers are not acceptable
Cashier's or certified checks must be payable to Home Services Title, LLC

3. Examples:

Personal check for $1,000.00 and cashier's check for $8,790.00

ACCEPTABLE — Total dollar amount is $9,790.00, which is less than $10,000.00.

Money order for $2,000.00 and cashier's check for $8,001.00

NOT ACCEPTABLE Total dollar amount is $10,001.00, which exceeds $10,000.00 limit

Certified check for $10,000.05

NOT ACCEPTABLE — Total dollar amount is $10,000.05, which exceeds $10,000.00 limit

4. Checks from the United States, the State of Ohio, or Ohio municipalities.

5. Checks from a real estate broker's escrow/trust account.

While the Ohio statute defines what is acceptable as Good Funds, following the statutory guidelines will not protect the settlement agent from liability for loss arising from uncollected funds.

Are there any other conditions for Good Funds? Yes, the funds must be immediately available for withdrawal and disbursement by the agent for the transaction.

TAX PRORATION

Tue, 30 Apr 2024 10:37:03 GMT

The Long and the Short of it...Tax Proration.

It's tax time again ... and even the most experienced Realtors, Sellers and Buyers still have questions about tax proration; long vs. short. We hope to answer many of those questions for you.

The best place to begin is the purchase contract, where the concept of prorating taxes is introduced to the parties. As part of the many considerations exchanged between the buyer and seller in the purchase contract, the real estate taxes, both past and future, are required to be adjusted between the parties in a very specific manner.

The CABR/DABR contract, dated October 2021, paragraph No. 20 / Line 357 reads:

Tax Bills in Ohio are billed a full year in arrears. Buyer shall be responsible for any and all property tax bills that come due and payable in the next semi-annual period that begins after the date of closing, including bills that relate to a period of ownership prior to Buyer's purchase.

At closing, Seller shall pay or credit on the purchase price:

(a) all real estate taxes and assessments, including but not limited to penalties and interest, which became due and payable prior to and in the semi-annual period in which the Closing occurs.

This is the first of 3 specific items required to be adjusted between the parties. As stated, it means that as of the day of closing, any delinquent real estate taxes are to be paid by the seller or credited by the seller against the purchase price. These amounts are to include any penalties and interest due on these unpaid balances.

To continue with the contract, lets address the second required item: (b) a pro rata share, calculated as of the closing date in the manner set forth below, of the taxes and assessments becoming due and payable after the closing...

The part of the contract that defines the "manner" in which these future taxes are to be dealt with begins on line 372 of the CABR/DABR contract. First you will find an explanation of the “Long Proration Method”. If you want long proration, do nothing else.

It is important to note the preprint states if the property is new construction, long proration shall apply.

On line 374, there is a box to check if you want the “Short Proration Method”. In fact, the contract specifically states in capital letters: ONLY CHECK THIS BOX IF THE SHORT PRORATION METHOD IS USED. The contract goes on to state the Seller's share shall be calculated as of the date of Closing, based upon the amount of the annual taxes (as determined by the most recently assessed tax amounts) to establish a daily rate of taxes and then multiplying the daily rate by the number of days from the first day of the current, semi-annual tax period to the date of Closing. If checked, the Short Proration Method shall be applicable and shall supersede the provision to use the Long Proration Method.

Continuing with a look at the "manner":

Beginning dates for tax periods are July 1 or January 1 and are used to establish a beginning date for the proration. Short tax proration has just been defined as taking the most current annual real estate taxes and assessments and dividing that amount by 365 days to acquire a daily rate of taxes. Multiply that daily rate by the number of days between the immediately preceding tax installment date (July 1 or January 1) and the date of closing. For example, a transaction closing February 15th would use January 1st as the beginning date for the proration. A sample calculation follows: Semi- annual tax is $1000 X 2= Annual tax of $2000 divided by 365 = $5.479 (daily rate) X 45 days (number of days from January 1 to the day of closing) = $246.55. Helpful hint - Buyer always pays the

day of closing.

To keep it easy, think of “Long Tax proration” as the same short method mentioned above, PLUS AN ADDITIONAL SIX MONTHS. The seller pays the taxes which are a lien for the year of the closing. All tax bills due in the current year represent the annual taxes for the previous year. The long tax proration method requires the seller to credit a prorated amount based upon all tax bills due (or which will come due) in the year the closing is taking place. So, using the same example as above, the credit received by the Buyer from the seller would now total $1,246.55 (that is, six months of taxes and assessments @ $1000 per half, PLUS the 45 days totaling $246.55).

Finally, the third and last of the required adjustments under paragraph 20. For this, we have to move

back up a few lines to Line 363 and pick up on subparagraph (c). (C) At closing, Seller shall pay or credit on the purchase price ... (c) the amount of any agricultural tax savings accrued as of the closing date which would be subject to recoupment if the property were converted to a non-agricultural use (whether or not such conversion actually occurs), unless Buyer has indicated that Buyer is acquiring the real estate for agricultural purposes. If checked, Buyer hereby states that Buyer will use Real Estate for agricultural purposes and expressly waives Sellers payment to Buyer of the estimated agricultural tax savings subject to CAUV recoupment. It is important to know Current Agricultural Use Valuation = CAUV and Agricultural

Use is defined as:

1) Properties of 10 acres or more used for commercial agricultural purposes, OR

2) Properties less than 10 acres that can provide evidence of a minimum of $2500 annual income as a

result of commercial agricultural use.

If it is the intention of the Buyer to use the property as a residence, yet maintain the current

agricultural use of the property, then the box in paragraph 20, line 366 should be checked.

Assessments, if billed in a single annual installment, will always be prorated using the long

proration method.

Paragraph 21 goes on to clarify additional prorations...for homeowners association dues, rents, security deposits, and more. It is also important to understand the newly added portion of this paragraph relating to possible future proration of taxes after closing for newly constructed properties.

Whenever the concept of short tax proration crosses county lines or gets into areas with certain customs, or if you are dealing with an out of town Buyer, detailed explanations are expected of you. If you have any 'taxing' questions, please feel free to call your favorite Home Services Title representative for the answer, and always remember to insert HOME SERVICES TITLE, LLC on line 401 in paragraph 221!

HOW TO READ A TITLE COMMITMENT

Tue, 30 Apr 2024 10:37:02 GMT

What is a Commitment for Title Insurance?

A commitment for title insurance is prepared before issuing a Policy of Title Insurance that shows the ownership of a specific parcel of land with the liens and encumbrances thereon which will not be covered under a subsequent title insurance policy.

What role does a Commitment for Title Insurance play in the real estate process?

A commitment for title insurance contains the conditions under which the title company will issue a particular type of title insurance policy. This commitment list title defects, liens, and encumbrances which would be excluded from coverage if the requested title insurance policy were to be issued as of the date of commitment. This commitment may then be reviewed and discussed by the parties to a real estate transaction and their agents. Thus, a Commitment for Title Insurance provides the opportunity to seek the removal of items referenced in the commitment which are objectionable to the buyer before purchase.

When and How is the Commitment for Title Insurance produced?

Shortly after escrow is opened, an order will be placed and the title company will begin the process involved in producing the commitment. This process calls for the assembly and review of certain recorded matters relative to both property and the parties to the transactions. Examples of recorded matters include a deed of trust recorded against the property and the parties to the transactions. These recorded matters are listed numerically as “exceptions” in the title commitment. They will remain exceptions from title insurance coverage unless eliminated or released prior to the transfer of title.

What should I look for when reading my Commitment for Title Insurance?

You will be interested primarily in the extent of your ownership rights. This means you will want to review the ownership interest in the property you will be buying along with any claims, restrictions or interests of other people involved in the property. The commitment will note in a statement of vesting the degree, quantity, nature and extent of the owner’s interest in real property. The most common form of interest is “fee simple” or “fee” which is the highest type of interest an owner can have in land. Liens, restrictions and interest of others which are being excluded from coverage will be listed numerically as “exceptions” in the commitment for title insurance. These may be claims by creditors who have liens or liens for payment of taxes or assessments. There may also be recorded restrictions which have been placed in a prior deed or contained in specific documents creating covenants, conditions, and restrictions (CC&R’s). Finally, interests of third parties are not uncommon and may include easements given by a prior owner which limits your use of the property.

TERMS YOU SHOULD KNOW

Tue, 30 Apr 2024 10:37:01 GMT

Terms to know in a real estate transaction.

APPRAISAL An estimate of value of property resulting from analysis of facts about the property; an opinion of value.
ANNUAL PERCENTAGE RATE (APR) The borrower’s costs of the loan term expressed as a rate. This is not their interest rate.
BENEFICIARY The recipient of benefits, often from a deed of trust; usually the lender.
CLOSING DISCLOSURE (CD) Closing Disclosure form designed to provide disclosures that will be helpful to borrowers in understanding all of the costs of the transaction. This form will be given to the consumer three (3) business days before closing.
CLOSE OF ESCROW Generally the date the buyer becomes the legal owner and title insurance becomes effective.
COMPARABLE SALES Sales that have similar characteristics as the subject real property, used for analysis in the appraisal. Commonly called “comps.”
CONSUMMATION Occurs when the borrower becomes contractually obligated to the creditor on the loan, not, for example, when the borrower becomes contractually obligated to a seller on a real estate transaction. The point in time when a borrower becomes contractually obligated to the creditor on the loan depends on applicable State law. Consummation is not the same as close of escrow or settlement.
DEED OF TRUST An instrument used in many states in place of a mortgage.
DEED RESTRICTIONS Limitations in the deed to a parcel of real property that dictate certain uses that may or may not be made of the real property.
DISBURSEMENT DATE The date the amounts are to be disbursed to a buyer and seller in a purchase transaction or the date funds are to be paid to the borrower or a third party in a transaction that is not a purchase transaction.
EARNEST MONEY DEPOSIT Down payment made by a purchaser of real property as evidence of good faith; a deposit or partial payment. EASEMENT A right, privilege or interest limited to a specific purpose that one party has in the land of another.
ENDORSEMENT As to a title insurance policy, a rider or attachment forming a part of the insurance policy expanding or limiting coverage.
HAZARD INSURANCE Real estate insurance protecting against fire, some natural causes, vandalism, etc., depending upon the policy. Buyer often adds liability insurance and extended coverage for personal property.
IMPOUNDS A trust type of account established by lenders for the accumulation of borrower’s funds to meet periodic payments of taxes, mortgage insurance premiums and/or future insurance policy premiums, required to protect their security.
LEGAL DESCRIPTION A description of land recognized by law, based on government surveys, spelling out the exact boundaries of the entire parcel of land. It should so thoroughly identify a parcel of land that it cannot be confused with any other.
LIEN A form of encumbrance that usually makes a specific parcel of real property the security for the payment of a debt or discharge of an obligation. For example, judgments, taxes, mortgages, deeds of trust.
LOAN ESTIMATE (LE) Form designed to provide disclosures that will be helpful to borrowers in understanding the key features, costs and risks of the mortgage loan for which they are applying. Initial disclosure to be given to the borrower three (3) business days after application.
MORTGAGE The instrument by which real property is pledged as security for repayment of a loan.
PITI A payment that includes Principal, Interest, Taxes, and Insurance.
POWER OF ATTORNEY A written instrument whereby a principal gives authority to an agent. The agent acting under such a grant is sometimes called an “Attorney-in-Fact.”
RECORDING Filing documents affecting real property with the appropriate government agency as a matter of public record.
SETTLEMENT STATEMENT Provides a complete breakdown of costs involved in a real estate transaction.
TRID TILA-RESPA Integrated Disclosures

CLOSING PROCESS

Tue, 30 Apr 2024 10:37:00 GMT

Top 10 things consumers should know about the closing process.

The Consumer Financial Protection Bureau (CFPB) created the TILA-RESPA Integrated Disclosure (TRID) Rule to improve mortgage disclosure forms to make it easier for consumers to understand the terms of their loans and closing costs. In order to ensure a timely closing, it is more important than ever that you communicate with your lender, real estate agent and settlement professional.

T IME IS OF THE ESSENCE

To avoid delays or a postponement of your closing, be sure to respond to lender and settlement company requests immediately. • Work closely with your lender, real estate agent and settlement professional to avoid delays.

YOU HAVE A CHOICE

When it comes to service providers associated with your closing, you have a choice. This includes the company or attorney that will close your transaction and most inspectors, just to name a few. In certain areas, the seller will pay for some closing costs and thus will be entitled to select the vendor(s).
Talk to your lender, real estate agent and settlement professional to obtain additional information about the various service providers and fees.

PROTECTING YOUR INFORMATION – SECURED EMAILS

As an additional security measure to protect your non-public personal information, you may receive secured emails from your lender and settlement service provider.
You will need to follow the instructions for retrieving that information (which will likely require you to create an account) and make sure that you return any information through the secured email system.

LOAN ESTIMATE (LE)

The Loan Estimate (LE) will be sent to you within three days of your loan application. You may receive multiple copies of the LE if there are any changes in circumstance(s).
The terms provided on the LE will also appear on the Closing Disclosure (CD). Lenders are required to explain any changes in fees on the CD.

PREPARING FOR CLOSING

Approximately 10 – 14 days before you are scheduled to sign your documents you should be prepared to communicate with your lender, real estate agent and settlement professional. It will be important for you to provide your hazard insurance information.
NOTE: Wiring instructions will be subject to strict verifications to prevent fraud. Discuss this with your closing professionals well in advance.

CLOSING DISCLOSURE (CD)

A closing statement called the Closing Disclosure (CD) will be used for most loan applications. The CD will be sent directly to you (buyer/consumer) and not your real estate agent.
The CD is designed to make it easy for you to understand the terms of your loan.

THREE-DAY REVIEW PERIOD

The Closing Disclosure (CD) must be delivered to the buyer/consumer at least three business days prior to the signing the documents.
If the CD is delivered via email it is important to acknowledge receipt to avoid additional delays.
The CD may also be mailed seven days in advance and does not require proof of receipt.
This time allows you to share it with your agent, attorney and/or financial advisor and ask questions or get clarifications from your lender about the terms and conditions of your loan.

LENDERS TITLE INSURANCE POLICY

Lenders typically require their borrowers to purchase a Lender’s Policy of Title Insurance for the purchase loan(s).
The fees are usually based on the amount of the loan(s).
However, a lender’s policy protects only the lender’s interests should a problem with the title arise.

OWNERS TITLE INSURANCE POLICY

Research the value and importance of an Owner’s Title Insurance Policy early on in the process of obtaining a loan and closing on the purchase of your home.
Homebuyers often assume that the Lender’s Title Insurance Policy protects them from challenges to their ownership rights in the property being acquired. This is not the case. Instead, the homebuyer’s interests are protected by an Owner’s Title Insurance Policy. This insurance coverage typically protects against adverse matters such as ownership challenges, errors and omissions in deeds, forgery, and undisclosed heirs, among other things. It also provides coverage for the attorney’s fees that arise where legal challenges to your property’s ownership occur. Its cost is typically based on the home’s total purchase price, and is a one-time fee paid at closing.

ASK QUESTIONS

This is one of the most important purchases of your life. Do not be afraid to ask questions of your lender, real estate agent and settlement professional.