Union County, New Jersey Title Insurance

Title Insurance Introduction

A commitment to issue this insurance policy is given to your lawyer 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), in addition to any easements, building restrictions, set-back lines or other matters of record which concern the property.

A fault on the title is generally referred to as a "cloud" on title. Unlike other property & casualty types of insurance (auto, home, etc) title insurance insures against past events, not future events. Union County title insurance companies assume the risk that title to a parcel of real estate is equal to what is stated in the policy. A title insurance policy protects the buyer or lender against losses suffered if title to the property is not as the policy states it to be. If, for whatever 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 come as a result.

Title Insurance Tips

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

Clients may shop title insurers for the most competitive rates. Often times, a seller's agent/broker will select a title company to work with, however buyers or sellers are not required to use this particular company. Real estate agencies and title agents may have affiliated business arrangements with each other which must be disclosed.

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 you use a title company 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 aren't permitted by your contract and which would unfavorably affect your ownership rights.

Mortgage Lenders typically 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 is provided in this title insurance policy.

A Title company is required to perform 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 is required 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.