What is Title Insurance
Who Pays For Title Insurance?
What Is The Term For My Policy?
What Is A Title Search/Title Examination?
- Historical deeds are examined to confirm a proper “chain of title”. This important step makes sure that each person before you had the legal right to sell the property. In this step the legal description of the property is verified on all previous transfers as well.
- The title examiner will review all recorded mortgages and other encumbrances. The title examiner will determine which documents have been satisfied and which ones are still outstanding. Before transferring title all encumbrances must be satisfied in a manner that is compliant with Florida’s Real Property Title laws.
- Some personal judgments can attach to property such as, delinquent child support, student loans and unpaid credit cards.
- Unrecorded liens are the most common. These liens include water bills, code violations, or any other lien that may not be recorded. The “Marketability” of title will be affected by these unrecorded liens.
What Is A Closing Disclosure (Commonly Referred To As A Closing CD)?
How Long Does The Closing Process Take?
Types of Title Insurance Policies
There are 2 basic types of title insurance policies: an owner’s title insurance policy and a loan or lender’s policy. Under the terms of both types of policies, Scarab Title & Escrow Services, LLC. is obligated to pay any costs, attorney’s fees and expenses incurred in defending the title or the lien of the insured mortgage to the extent provided for in the conditions and stipulations.
The Owner’s Title Insurance Policy
Issuance of an owner’s policy typically occurs during the purchase of real property. The price of the policy is determined on the purchase amount of the real property being transferred. Issuance of an owner’s policy by Scarab Title & Escrow Services, LLC., essentially insures that the full bundle of rights is being given to the homeowner.
Coverage by this type of policy will remain in effect as long as the insured or their heirs retain the title to the described property. This is called having perpetual and indefinite liability. The coverage under the terms of an owner’s policy will not decrease over time.
What we insure:
- Title to the estate or interest described in schedule A (legal description) is not vested in a party other than the one stated in the policy – or – that the title belongs to the owner shown in the policy.
- Any defect in or lien or encumbrance on the title – or – that the search and examination are correct.
- Against the marketability of the title – or – that the title is so free from problems that a knowledgeable and prudent buyer would accept it.
- Against a lack of the right of access to and from the land – or – that the property has legal access.
The Lenders Title Insurance Policy
Protecting and securing the lenders rights in and to the property is completed by issuance of a loan or mortgage policy. The borrower or property owner is not covered by issuance of a lender’s title insurance policy. The lender’s policy coverage is in the amount of the loan or mortgage on the property. Therefore, as payments are made the debt decreases. In this case, the coverage amount aslo decreases. Scarab Title & Escrow Services, LLC. is giving financial protection or assurance as to the priority and enforceability of the mortgage by issuing this type of policy.
What we insure:
- That the lien of the covered mortgage is valid.
- Against the priority of any lien or encumbrance over the lien of the insured mortgage – or – that the lender has the lien priority that they want.
- Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor, or material – or – against any unrecorded mechanic’s lien.
- Against the invalidity or unenforceability of any assignment of the insured mortgage – or – that the assignment of the mortgage is valid, if included in schedule A.
Who We Use For Underwriting
We utilize Westcor Land Title Insurance. Westcor holds an “A Prime” rating from Demotech, defining us as a company that “possesses unsurpassed financial stability related to maintaining positive surplus as regards to policyholders, regardless of the severity of a general economic downturn or deterioration in the insurance cycle.”