Southern Utah, Utah Title Insurance

Title Insurance Introduction

A commitment to issue this insurance policy is given to your lawyer prior to closing. it will confirm 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 record matters which involve 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 events forthcoming. Southern Utah title insurance companies assume the risk that title to a parcel of real estate is as it is presented to be in the policy. A title insurance policy covers 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 another person 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 pointers may be especially useful 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 aren't required to use this company. Real estate agencies and title agents may have affiliated business arrangements with each other and this must be revealed.

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 offered 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 allowed by your contract and which would unfavorably affect your ownership rights.

Mortgage Lenders mainly 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 establishes the extent of coverage that this title insurance policy provides.

A Title company is required to perform a thorough title search to make certain a clear title. If a "cloud" on the title is exposed, the company will typically 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 carefully read the exceptions page of their title commitment and policy.