1. What is a title and what is involved in a title search?
2. What is title insurance?
3. What are the title company's responsibilities in addition to conducting the title search?
4. What should we do to prepare for the closing?
5. How Is Title Insurance Written?
6. Why New York State Homeowners Place Their Faith In Us?

The most accurate description of a title is a bundle of rights in real property. A title search is the process of determining from the public record just what these rights are and who owns them. A title search is the means of determining that the person who is selling the property really has the right to sell it, and that the buyer is getting all the rights to the property (title) that he or she is paying for.

The process can be undertaken by a title company or a law firm. In most real estate transactions today, a loan policy is bought for the Lender. An Owners policy also can be purchased to assure the buyer that he or she has purchased a valid title.

Title insurance is your policy of protection against the loss if a claim is made against your ownership because of fraud, forgery, judgments, unpaid real property taxes, liens, or other defects in title. The title insurance company will, at its own expense, defend the title and will pay losses within the coverage of the policy if they occur.

Monroe Title will initiate and conduct a title search of the property upon the request of the lender, the realtor or the buyer depending on whether the purchase is being financed. The title search often reveals minor title problems that need to be corrected before title can be considered "clear". Most such minor title problems can be corrected by obtaining and recording "corrective" documents at the appropriate registry of deeds. Unless there is a more serious title issue to resolve, which is not the usual case, the closing can take place within days of receiving the title search request.

Once you have entered into a purchase and sale agreement to buy a particular property, and applied for a mortgage loan to finance the transaction, your realtor, lender and the title company will be working toward putting the various pieces together. You should strive to answer any questions directed to you, and to provide any additional information that may be requested, as soon as possible so as not to delay your closing. Your lender will require that you provide, at time of closing if not before, a homeowners insurance binder evidencing coverage for the first full year as well as a receipt for payment of the first annual premium. It is certainly best to provide these items prior to closings.

Once the Settlement Statement has been prepared, you should carefully review it. The last thing you will need to do before the closing is to obtain a bank or cashier's check, for the total amount you will be asked to bring to closing. Also, don't forget to bring a form of picture ID.

Monroe conducts a search of the public records to create a history of the property. If local custom dictates, this history is set forth in a written abstract.

One of Monroe's title insurance professionals then examines the history or abstract to verify the seller's right to transfer ownership of the property. This examination results in the creation of a commitment to issue title insurance, which summarizes the condition of title, including any defects or liens that must be addressed prior to closing. This commitment is then forwarded to your attorney, the seller's attorney and the lender.

The premium for your owner's title insurance policy and the lender's mortgage policy are paid at the time of closing.

We've been writing title insurance in New York State for more than 70 years. Our local title insurance professionals will work closely with you and your attorney, while providing prompt service in meeting your title search and insurance needs. With offices located throughout New York State, we have special knowledge of the local laws and customs in your community which often help define the requirements for a clear and transferable title.

For more information, contact the Monroe office nearest you.