is a title?
A title is the owner's right to possess and use the property.
is title insurance?
Title Insurance is protection from past events which may or
may not be a part of the public records, but that can affect
a new owner’s interest in the property being sold to them.
Title Insurance protects against title defects, such as fraud,
forgery, incompetence or missing heirs that even the most diligent
title search may not discover.
in NJ protect the owner of a property and the owner’s heirs. However,
laws also protect others with rights to a property such as mortgage
and lien holders, municipalities and the United States (for
tax liens), and others with rights to fuel and natural resources. Because
of the laws protecting both owners and others who have an interest
in the property, property should only be purchased after an
extensive investigation of the title. Despite these careful
investigations, issues can arise like errors on the record,
missing heirs, mental incompetence of the seller, marital status,
etc. The only protection a property owner can get against the
above is the purchase of a title insurance policy.
is a title search?
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 search verifies the seller's right to transfer ownership
of a property and will discover any claims, defects, and other
rights and burdens on the property.
Title Insurance Expensive?
The cost of title insurance is small in comparison to the cost
of the investment and the value of the property. In New Jersey,
title charges are regulated by the New Jersey Department of
Banking and Insurance.
much does Title Insurance cost?
Title Insurance is a regulated industry and there are set
premium fees that must be charged. The rates vary depending
on whether it is a refinance or purchase. For a purchase, the
premium is based off of the purchase price. For a refinance,
the premium is based off the refinance loan amount
title policy is paid by a one-time premium at closing. Each
time you refinance, your lender will require a new loan policy
which requires the payment of a new, but reduced, premium.
Rate Calculator to determine your
title insurance cost.
the company make any charges other than a premium charge?
Yes. There are also search and exam charges. These charges
are regulated by the Department of Banking and Insurance. The
exam charge is $100. Other search charges, such as those for
judgments, taxes and assessments, are charged at the actual
cost to the company. Lender’s also require a CPL (Closing Protection
Letter) and various endorsements, which are $25 each, as mandated
by the NJDOBI
mortgage is covered by a Title Insurance Policy and now I am
refinancing, do I need another policy covering the new mortgage?
Yes, you will need a new policy. A loan title insurance policy,
which protects the lender's interest only, remains in effect
only as long as the specific mortgage remains on the property.
When you refinance, your new lender requires title insurance
covering their new mortgage on your property. It provides protection
to the lender against events that may have occurred since you
purchased the property. The new policy, following updated searches,
insures the lender only.
be entitled to a reduced rate based on the amount remaining
on the current mortgage.
I need an attorney to close my loan?
Answer: No. However, we strongly recommend it. Anyone
with a title insurance license may close loans but they are
not allowed by law to give you legal advice. If a defect on
the title arises, only a lawyer is allowed to advise you. Some
bank documents may only be explained by a licensed attorney.
It is in your best interest to have an attorney working on your
it cost more to have my loan closed with an attorney?
Answer: Not necessarily. The amount charged by many attorneys
to close and disburse a refinance is the same as the minimum
charge mandated by the NJ Department of Insurance for a title
insurance company or agent to close and disburse a refinance.
have to travel to Trusted Title’s office to close my loan?
No. Trusted Title works with closing attorney’s
who will come to your home or office to close your loan. Our
closing partners are available to close loans anytime of day
and at any location convenient for our clients.
What happens if there is a claim against my property? Do I
have to pay for the legal defense in the matter?
title company will hire and pay expenses for legal counsel and
take the action it deems appropriate to clear the claim. If
the company is not able to correct the problem, your losses
will be covered by the policy.
long does it take for the company to issue a Commitment and
for me to get to Closing?
Title does everything possible to accommodate our clients’ timelines.
Typically, it will take one to two days to complete the necessary
searches and do a thorough examination of the title. If you
require a rush, examinations can be done same day upon request.
kind of problems can a title search reveal?
A title search can show a number of title defects and liens.
Among these are unpaid taxes, unsatisfied mortgages, judgments
against the seller and restrictions
limiting the use of the land.
there any problems that a title search cannot reveal?
Yes. There are some "hidden hazards" that even
the most thorough title search may never reveal. For example,
the previous owner could have incorrectly stated his marital
status, resulting in a possible claim by his legal spouse. Other
possibilities include fraud and forgery, defective deeds, mental
incompetence, confusion due to similar or identical names and
clerical errors in the records. Trusted Title will always try
to discover any of the above.