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How does title insurance affect the seller who had no title insurance?
Wiki User
∙ 13y ago
A seller with no title insurance:
If a person has offered their property for sale and accepted an offer to purchase generally the intelligent buyer's attorney will have the title to the property examined by a professional title examiner. If the title exam reveals a defect in the title and the seller was not covered by a title insurance policy then the seller must pay to have the defect resolved. Title defects can be very costly to resolve.
Generally, if the seller chooses not to have the defect resolved the buyer can back out of the sale and get their deposit back. However, the seller has been put on notice regarding the defect.
The new owner's title insurance:
The new title insurance does NOT affect the seller in any way. Coverage is given only to the new owner under the Owner's Policy. If the seller cannot clear the defects and the buyer still wants to purchase the property, the issuing Title Agency has the option of insuring the title, but excepting the defects from coverage to the new owner. Thereby, the risk is assumed by the buyer, not by the Title Agency.
Wiki User
∙ 13y ago
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What is a seller's affidavit of title?
A statement, under oath, that the property being conveyed free of defects or encumbrances since the date of issue of title insurance commitment, or in other words, since the seller's acquisition of the property. A seller's affidavit of title does not substitute for a full title examination and doesn't mean that you shouldn't buy an owner's title policy.
How do you start a title insurance company in Arkansas?
If you are starting a title insurance COMPANY, the actual entity that is an insurance carrier (think 1st American, Chicago, etc.), you will need to contact the Arkansas Department of Insurance as to what their guidelines, reserves, etc. are for becoming a carrier in the state of Arkansas. If you are starting a title insurance AGENCY, the local entity that has a agency agreement with a title insurance COMPANY to sell their insurance products. Please note that a title AGENCY is not the same as a title COMPANY or title UNDERWRITING COMPANY. See the Related Links for more information.
Can you sell title insurance using the license of the underwriting company or must you have your own?
No, a Title Agency or individual producer cannot use an Underwriter's authority to sell title insurance unless that agency or individual producer is an employee of the Underwriter and the Underwriter also acts as an agency in the state it is doing business in. 1. A Title Insurance AGENT is the business who acts in behalf of an Underwriter. 2. A Title Insurance COMPANY/UNDERWRITER is the company who issues title insurance. Example: John Doe decided to open a Title Agency, but in order to do that, he must sign an agency agreement with an Underwriter to act as an agent for that underwriter. Once the agreement is in place and all conditions of the agreement have been met, John Doe may now go solicit business for that Underwriter under his newly created Title Agency. Can he sell title insurance in behalf of the underwriter without being licensed? The answer is yes and no. Some states require that a Title Agency and its principal (primary owner) be licensed specifically for title insurance. Other states have no licensing requirements to operate as a Title Agency. The best 2 resources to find out what your State requires for agency licensing are: 1. Department of Insurance (in your state) 2. Title Insurance Underwriter authorized to do business in your state
Do all title companies sell title insurance?
Let's start with defining title COMPANY vs title AGENCY. A title company is the actual company underwriting and insuring the title policy. Title companies then have agents who sell and negotiate title products in their behalf (think of it as equal to Allstate (the company) having the local Allstate agent) At this point in time, most title companies are also in the business of selling title products directly and in competition with their agents. However, there are more direct title agencies to obtain title insurance services from at a local level than title companies. So, the answer is yes, title companies can also be SELLING title services and products in addition to underwriting and insuring title insurance policies.
What is the name of the document that shows that you have no liens on your condo property and how do you get this without a Title Company?
The document is called a Certificate of Title. A Certificate of Title is issued by an attorney or title company after a title examination has been completed by a professional. It is used by a Title Insurance Company to write a title policy. Lenders require a Certificate of Title to lend money on the property. Generally, a Certificate of Title is backed up by an attorney's, or a title company's, malpractice insurance. You cannot get that for free.Depending on why you need the title checked, you could hire someone to examine the title for you or you could visit the land records office and do your own research. However, the title status report will not be acceptable for any official purposes.The document is called a Certificate of Title. A Certificate of Title is issued by an attorney or title company after a title examination has been completed by a professional. It is used by a Title Insurance Company to write a title policy. Lenders require a Certificate of Title to lend money on the property. Generally, a Certificate of Title is backed up by an attorney's, or a title company's, malpractice insurance. You cannot get that for free.Depending on why you need the title checked, you could hire someone to examine the title for you or you could visit the land records office and do your own research. However, the title status report will not be acceptable for any official purposes.The document is called a Certificate of Title. A Certificate of Title is issued by an attorney or title company after a title examination has been completed by a professional. It is used by a Title Insurance Company to write a title policy. Lenders require a Certificate of Title to lend money on the property. Generally, a Certificate of Title is backed up by an attorney's, or a title company's, malpractice insurance. You cannot get that for free.Depending on why you need the title checked, you could hire someone to examine the title for you or you could visit the land records office and do your own research. However, the title status report will not be acceptable for any official purposes.The document is called a Certificate of Title. A Certificate of Title is issued by an attorney or title company after a title examination has been completed by a professional. It is used by a Title Insurance Company to write a title policy. Lenders require a Certificate of Title to lend money on the property. Generally, a Certificate of Title is backed up by an attorney's, or a title company's, malpractice insurance. You cannot get that for free.Depending on why you need the title checked, you could hire someone to examine the title for you or you could visit the land records office and do your own research. However, the title status report will not be acceptable for any official purposes.
Is the buyer or seller responsible for title insurance in Texas?
The seller is required to provided a clear title; purchasing title insurance is generally a part of this.
Who pays title insurance in Wisconsin?
Does the seller pay fortitle insurance policy
What is a seller's affidavit of title?
A statement, under oath, that the property being conveyed free of defects or encumbrances since the date of issue of title insurance commitment, or in other words, since the seller's acquisition of the property. A seller's affidavit of title does not substitute for a full title examination and doesn't mean that you shouldn't buy an owner's title policy.
What if i got a motorcycle but the seller nevr sent me the title?
If you get a motorcycle but the seller never sends you the title, you should contact the seller. If the seller still does not give you the title, you should take the seller to court. The seller is obligated to provide you with a valid title so that you can register the car.
What can we do to obtain a title on a car that my teenager bought from her friend with cash and the seller moved and promised they would mail the title but we have not received it yet?
title bond......contact your insurance company and ask them about it.
Do you need title insurance if you have a warranty deed?
You need title insurance to protect your title, but the person who SOLD you the warranty deed should pay for the insurance and provide proof that he or she has obtained title insurance that will pay the costs they will incur if the title is defective.Otherwise, you're stuck with a worthless warranty deed and may be left trying to sue the seller who has no money to pay for anything, let alone restitution or other damages.
Why get title insurance if one has a warranty deed If you validate that the seller has title insurance then you can lean on him AND his title insurance company to clear up the title issues Right?
You are paying up front for a title search at the time of your sale. The present owner may have liens or judgements on the property and you need to know that they are cleared from the title or it will affect you down the road. Also, they review easements, fences and other basics of your property that may have been encroached on in the intervening time between sales. Basically, he has to pay up judgements/liens before or at the time of closing.
Who pays for title insurance in Wisconsin?
Seller or buyer can pay for the title insurance. Whatever is mutually acceptable by both parties. In some states, the buyer always pays the entire fees. In other states, the seller always pays the entire fees. However, this can always be negotiated. I have seen split fees where the seller will pay for the searches and the buyer pays all premium, recording and incidental charges. Many sellers elect to have a Title Report (no insurance, just information) run on the property when they put it up for sale so there will be no surprises later on. If the buyer uses the same title agency for the sale, typically the title agency will not charge full search fees, instead applying what the seller has already paid for the Report, towards the final title closing fees. Therefore, the fees are negotiable and usually follow the standard practice for the area where you live.
Who pays for title insurance in Lee county Florida?
A: The question of who pays the Title insurance is always negotiable and can be worked in to the real estate sales contract to assign this cost to either buyer or seller. As for a refinance, although the buyer tradionally pays, if you are doing a loan modification of your exhisting loan, most often an additional title policy is not required depending on the loan. The borrower (owner) pays for the title insurance on a Mortgage Policy when they are doing a refinance. As to who pays for the Owner's Title insurance on a purchase is strictly negotiable between buyer and seller. It can be negotiated as part of the terms of sale. In some states, typically the seller pays, since they have the burden of proof of good, clear, marketable title. In other states, the buyer pays. It is rather based on the "lay of the land" of which is the normal way of doing buiness in your particular state. In many states, the seller pays for the searches done on the property he is selling and the buyer pays the premium and other fees for the actual insurance coverage. However, there are no laws concerning who is responsible to pay for the title insurance or the title searches. Who ultimately pays for what specific fees should be negotiated from the beginning. If the buyer agrees to pay all fees, the buyer takes the financial burden and risk of paying for search fees on a property that may have serious title issues making it extremely difficult to sell, which the seller may have already known about but did not disclose. Therefore, it is always a good idea to ask for a copy of the Seller's "back title", the Owner's Policy that was issued to the seller when they bought it.
Why get title insurance if one has a warranty deed - If i validate that the seller has title insurance then I can lean on him AND his title insurance company to clear up the title issues. Right?
AnswerIt is unlikely that you have the savvy, professional experience, knowledge of the practice of law, knowledge of the law of real property, power or authority to "lean" on a former owner or a title insurance company. It is rarely as simple as a phone call saying "you need to take care of this". In many cases lawyers have a fight on their hands when making a claim against a title insurance company. Title insurance insures you against such hazards as unforseen title defects: defects that may arise that are not part of the public record, changes in title practice that make some older instruments questionable and defects that may arise from the period before the period covered by the title exam. You should discuss your theory with an attorney who can fill you in on the rest of the story.AnswerSince you wrote to my message board at Savemoney101, I am willing to give you my opinion on this. Understand that the seller has title insurance which is effective through the date of the recorded sale when they bought the property. The jeopardy to you (as well as the reason that you should obtain your own title insurance and protection therein) is that, especially in this market where many last-ditch efforts are made to save a seller in trouble, things may appear on title after the seller bought the property that will require title insurance as well as detailed investigation in order to bring you the peace of mind of owning the property without encumbrances.AnswerAn Owner's Policy is non-transferrable. The SELLER'S old Owner's policy does not affect you in any way. It only insured the seller up until point where he BOUGHT it, not during the time he owned it and is selling it. Therefore, you are completely unprotected against any issues that may have occurred during his time of ownership. Yes, you could sue everyone including the kitchen sink IF the Seller gives you a Warranty Deed at time of closing and then there are found "issues" later on. However, it is much cheaper (since you are looking to save money, here) to buy your Owner's Policy than it would be to sue someone. Plus, I can't think of any Seller who would release a Warranty Deed if they had known issues on title / against the property.
Where at on a title does the seller sign?
under the title
What is the title insurance?
Title insurance is protection that ensures that you are the proper owner of the property and that if someone comes forward with a valid claim to a portion of your property, the title insurance company may have to pay that person the value of the claim. In buying real estate you have to make sure that the seller truly owns the property in full with no defects in title. The title insurance company reviews the land records to make sure of this. If the company states that the owner is the full owner, it backs its opinion with title insurance. Some title defects might not be covered though, but the lawyer helping the buyer will make sure that it is safe to buy the property.
