Bangor & Vicinity, Maine Title Insurance

Title Insurance Introduction

A commitment to issue this insurance policy is sent to your attorney prior to closing. it will explain who owns the property, what liens or other matters affect the seller's ownership (such as mortgages, unpaid taxes or judgment), as well as any easements, building restrictions, set-back lines or other record matters which have an affect on the property.

A fault on the title is generally referred to as a "cloud" on title. Unlike other property & casualty types of insurance (automobile, home, etc) title insurance insures against past events, not upcoming events. Bangor & Vicinity title insurance companies assume the risk that title to a parcel of real estate is as it's stated to be in the policy. A title insurance policy indemnifies the buyer or lender against losses suffered if title to the property is not as the policy presents it to be. If, for some reason, a lien showed up on your title after you closed and that lien gave another person rights to your home, title insurance will commence and pay any damages that may come as a result.

Title Insurance Tips

If you are preparing to sell, buy or refinance property, these suggestions may be specifically beneficial to you.

Clients may shop title insurers for the most inexpensive rates. Often times, a seller's agent/broker will select a title company with which they would like to use, however buyers or sellers aren't required to use this particular company. Real estate agencies and title agents may have connected business arrangements with each other and this must be made known.

The premium rates charged by a title company are required to be filed with the Division of Insurance for most states. Likewise, the closing and settlement fees charged by a title company, or title agency, are required to be filed with the Division of Insurance. These rates and fees are available for public inspection.

When a title company is used to prepare closing documents, these documents must be prepared in accordance with the closing instructions provided by the lender, broker or both. Your attorney will review this title commitment and require that the seller clarify any items which are not permitted by your contract and which would adversely affect your ownership rights.

Mortgage Lenders generally require a lender's title insurance policy when providing a loan. The lender's instructions and requirements must be met before they will grant a loan. The lender generally determines the extent of coverage that this title insurance policy provides.

A Title company is required to perform a thorough title search to ensure a clear title. If a "cloud" on the title is discovered, the company will typically specify corrective actions that is required to be completed prior to, or at the time of, the closing. It is strongly suggested that all parties involved read carefully the exceptions page of their title commitment and policy.