Title insurance is a contract and a risk management tool that protects insurance holders against loss resulting due to title defects, survey defects, title fraud encroachments etc. It originated in United States due to shortcomings of the inadequate deed registry system. In 1876 a group of Philadelphia conveyancers founded the very first title insurance company; the company claimed that it would secure the purchaser’s real estate and mortgages against losses from defective title, liens and encumbrances (McAndrews, 2012). Although initial use of title insurance in Canada was to facilitate land transactions involving American interests, since the early 1990s use of title insurance has dramatically increased. Many title insurance providers stress the importance of title insurance during a real estate transaction. In fact some companies go so far as to suggest that title insurance eliminates the need for a comprehensive title search and a Survey Real Property Report (SRPR). As mentioned earlier, title insurance is a risk management tool. For many people, property is the biggest investment of their lifetime. Therefore, buyers need to thoroughly understand what exactly title insurance is, but most importantly they need to be aware of what it is not. Title insurance should be complementary to the SRPR, which shows the buyer the quality and the extent of the title prior to a property transaction. Title insurance by no means can replace a SRPR prepared by a professional land
Investors often find lenders ' requirements for title seasoning an obstacle to selling their properties. Holding costs and declining market value can eat into profits. Leaving a house vacant can make it a target for vandalism. So... What is title seasoning? This refers to the length of time a person 's name has been on the title document recorded on a piece of real estate. Lenders ' underwriting guidelines vary as to how long a person 's name must be on title for a purchaser to buy an investor 's home or for the investor to refinance the property and cover his costs to rehab it. Why did lenders institute the title seasoning requirement? Can we say mortgage fraud? The scenario goes like this: Crook #1 buys a house for $100,000 in Week 1 and sells it to Crook #2 for $150,000 in Week #3. Crook #2 has his sister, brother-in-law, cousin Marvin appraise the property for $200,000 in Week #5 and in Week #6 sells it to Clueless Buyer who is so afraid of being priced out of a rapidly escalating housing market that she pays him a $25,000 premium over his asking price just to stay out of a bidding war. Problem is, Clueless Buyer is often a figment of some hot shot creative loan broker 's imagination trying to score a commission, points on the loan or the yield spread premium from the lender. After a few hundred of these scenarios, lenders wised up and wanted to believe they could stop property flipping (which is not illegal). Hey, it worked great - right up until about 2003. This is
Insurances The contract allows either the contractor or the owner to insure. Provision is also made for one party to take out and maintain the insurance where the nominated party fails to do so or fails to provide acceptable evidence that the insurance in is place
Florida Tax Lien Title, Inc conducts extensive research into the following areas for a comprehensive account of the property:
The Ohio form advises in large print on the front that ‘potential purchasers are encouraged to obtain their own professional inspection(s).’6 Yet, by no means does it eliminate the caveat emptor precept and the need for inspections of the property as well as buyers’ due diligence. Gee v. Sun illustrates the fact that the disclosure form cannot be relied upon as a guarantee of rescission. The seller in this case allegedly had knowledge of a pending city ordinance for a new sewer system that would require significant assessments upon the homeowner. Gee sued the seller after the completion of the sale to rescind the contract due to fraud and misrepresentation on the Residential Property Disclosure Form. The court held that there could be no liability without actual knowledge that the seller actually knew about the pending assessment. Existing law makes it extremely difficult to prove fraud or misrepresentation. More importantly, the statute only allows rescission prior to the date of title transfer. Finally, the form has an incorporated qualification of the ‘seller’s actual knowledge’ of any particular problems. And in this case, even with stories published in the local newspaper for three issues in a row, Gee
A primary concern is the registration gap. This is the time between the transfer of drawn up and agreed up contracts and the actual registration of the property unto the new owner. Particular issues with the registration gap is the fact that in any transaction there are too many parties involved, length of transaction is too long and the transparency/opaqueness is questionable/questioned.
The foreclosure crisis is changing the Real Estate Owned (REO) process. Some banks hold off on following through with foreclosures or letting empty houses sit in limbo, where they deteriorate further, instead of selling them. Cleveland has dealt with these “toxic titles,” as banks like Wells Fargo have refused to
As a Toronto condominium owner, you have many benefits but you are also exposed to unique risks. Unlike a single-family homeowner, you have a number of policies in force between your personal insurance and the condo corporation insurance. You need to make sure that this insurance overlaps so as not to let risk seep through the seams.
There are a number of steps involved in the property title process. However, this has changed over the years due legislation such as the land protection act, introduced in the 1900s. Still, many of the original process steps are used today it requires detail gathering and documenting information. Nevertheless in the first step is the initial request for a title. Many times, it has performed out without involving and buyer Black (2001). However, this step perhaps identified as a task that records the land in its present state. Secondly, an on-site examination then performed. The steps are compiled in a detail report that reports on the legal property name, location and any tax information related to the property in question (Black, 2001)
An insurance policy is a contract between two parties: you and the insurance company. Both of you have obligations that are laid out in the insurance policy. While many insurers often act like they can do what they want when it comes to paying claims, insurance companies still have contractual obligations laid out in the policy.
A property survey must be conducted to create a legal property description. The legal description assists with identifying boundary lines through a legal method that can properly described, “conveyed, encumbered and contracted” (Jacobus 54). The Statute of Frauds requires written description of the land in the instrument of conveyance. As the textbook stated, there are methods in determining the legal boundary lines, includes “metes-and-bounds, lot and block, monuments, government land survey, recorded plat and rectangular survey system” (Jacobus 55-60). These survey methods ensure a correct and legal description for the property deed. When preparing property deeds, it is wise to compare the legal description with the most recent deed to
It is a well-known fact that the property matters are complex enough to require detailed attention. There are several factors to be taken into consideration to make sure the deal is fundamentally and legally solid. When it comes to a property's title, factors which plays an important role are-
People usually think that owning property comes with no problems or complications sometimes along the road. Most of them think that the title, loan, transfer documents and a homeowner insurance (which provide owners with theft, fire and liability coverage) are enough for them to keep their homes and cede it to their children, once they are gone.
Mortgage Professionals in New York rely on Vertical Title for their experience within the real estate industry.
Two of the biggest contributions of the title agency are the title search and providing title insurance.
Title Company – Protects against future title claims and ensure that the home has a free title in order