Northeastern Maine, Maine Title Insurance

Title Insurance Introduction

A commitment to issue this insurance policy is sent to your lawyer prior to closing. it will show 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 affect 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. Northeastern Maine 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 protects the buyer or lender against losses suffered if title to the property is not how the policy states it to be. If, for some reason, a lien showed up on your title after you closed and that lien gave someone else ownership rights to your home, title insurance will take affect pay any damages that may result.

Title Insurance Tips

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

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

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 on hand 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 resolve any items which aren't permitted by your contract and which would adversely affect your ownership rights.

Mortgage Lenders normally require a lender's title insurance policy when providing a loan. The lender's instructions and requirements must be met prior to 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 carry out a thorough title search to guarantee a clear title. If a "cloud" on the title is discovered, the company will usually specify corrective actions that has to be completed prior to, or at the time of, the closing. It is highly suggested that all parties involved read carefully the exceptions page of their title commitment and policy.