The title insurance industry works hard to protect the American dream of homeownership by insuring title for America’s homebuyers and lenders. To help you gain a better understanding of our role in protecting your interests, here are brief descriptions of the four essential services performed during the title process:
1. Title Search and Examination
2. Curative Actions
3. Settlement / Closing Services
- Coordinate communication between all parties in the transaction
- Review lender documents, contracts and escrow agreements
- Prepare HUD-1 Settlement Statement
- Pay off prior liens and mortgages
- Gather parties to review and finalize documents
- Disburse funds to appropriate parties
- Submit pertinent documents for proper recordation
- And many more additional tasks
4. The Title Insurance Policy
- An Owner’s Policy protects the homeowner from enumerated title risks for as long as the policyholder owns the property. In many states, various extended policies and expanded coverages are offered to address title issues that may arise after the policy date, including false claims by identity thieves, neighbors building encroachments, and more.
- A Loan Policy is generally required by lenders (and purchasers of loans in the secondary mortgage market) to provide insurance that their mortgage liens are valid and enforceable, and that they have priority over other liens or claims. In many states, extended policies and expanded coverages are also available to lenders.