Title is a legal term that refers to one’s right to own, possess, use, control and transfer an interest in real estate. Title may also refer to the way a person holds the ownership (i.e. as a sole owner or jointly with another person). Title may be vested in a person or entity such as a trust or corporation.

If you’re buying a home, title insurance is a policy that protects your investment and property rights. There are two different types of title insurance: owner’s policy and lender’s policy. An owner’s policy protects you, the homeowner, for as long as you own the home. A lender’s policy is usually required by the lender and protects only the lender’s financial interest. Purchasing an owner’s title insurance is the best way to protect your property from possible future claims. The one-time payment for owner’s title insurance is low relative to the value of the home. It is based on the sales price and is about 0.5% of the purchase process.

A title company brings together and executes the interests of all parties to a real estate transaction, including the buyers, sellers, mortgage lender and real estate agents. We act as a neutral third party to the transaction to ensure that all requirements for settlement are fully satisfied and the title is clear and insurable. In addition to issuing title insurance policies, clearing liens and legally transferring title, we also disburse the monies to all parties entitled to payment out of the proceeds of settlement.

A title search is a detailed examination of the land records concerning a property, like deeds, mortgages, court records, and name indexes. An experienced attorney or title officer will examine these records to determine if the title to the property is insurable for the new owner. We look to determine the owner’s right to transfer and ascertain any liens or defects on title. A title search will reveal problems such as defects and liens, as well as unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land. Approximately one-third of all title searches reveal some title defect that must be cleared.

According to the terms of your policy, title insurance will pay your legal fees to defend yourself against a fraudulent claim and also pay any valid claims, up to the face value of your policy. Owner’s title insurance is a one-time payment and coverage lasts for as long as the owner or their heirs own the property.

Choosing the right title company is very important in making sure your transaction is handled in the most professional manner. You should not base your decision solely on fees but should consider a number of factors such as reputation, experienced staff, and recommendations from professionals in the real estate industry. The title company should be able to guarantee their fees upfront and in writing and should be available to answer any of your questions either before, during and even after settlement. At RSI Title, our fees are guaranteed in writing and our staff has decades of experience. We offer free consultations on the home buying or selling process and are available to answer all of your questions before, during and even after settlement.