common Title Insurance Questions:
What Does Excalibur Title Company Do For You?
Excalibur Title and Escrow in short is the intermediate between all parties in the real estate transaction. The Parties usually involved in the transaction are buyers, sellers, lenders, and the real estate agents. Excalibur Title duties are multi-leveled, first Excalibur Title examines the executed real estate contract, then they do the title search to confirm proper ownership interest of the seller to the subject property. Then after Excalibur can show a clear title to the property, then they submit the title work to the lender for approval. After the loan has been approved then Excalibur Title receives instructions from the lender that needs to be fulfilled at the closing table. These instructions needs to be followed exactly as stated for the transaction to be a legal transfer. After you have closed on your loan there is post closing duties that Excalibur Title will have to perform, which include, ensuring that all the legal documentation (note and deed of trust) are recorded in the land records for the particular county of the transaction.
What is a title search?
A Title Search, also called an abstract of title, is a very important procedure in the settlement process. Normally A title search is required by the lender and/or title insurer. An abstract or title search is preformed to determine “clear title”, merchantable and marketable title, meaning the land is free from encumbrances (prior mortgages, easements or judgments) being one free from litigation and defects both legal and equitable.
Why do I need a Title search?
A Title Search is a necessary step in order to ensure that the property is deemed “good and marketable”, this is determined through the title search of public records. They are looking for any outstanding liens, judgments, or easements that might be on the property. More importantly the title search reveals that the seller of the property is the legal owner of the property and has the right to transfer the property.
What are the different types of title insurance?
There are two types of title insurance that Can Be purchased
1. Lender’s Policy – When receiving a loan on a property the lender will require, in part of the closing instructions, that the property has title insurance on the property. The policy protects the lender in the case that a claim is made against the property. This will ensure that the lenders investment is protected and that if a claim is made that is proven to be a legitimate claim the title insurance company will cover the investment of the lender.
2. Owners Policy – The owners policy is an optional policy, but the importance of the policy is to ensure like the lender if there is a claim to the property they all monies that you have put towards the property will be insured.
What is a settlement statement?
A settlement statement is also called a HUD-1. The HUD-1 is a form that shows a list of all costs and fees that are associated with the loan. It is broken down into two sections the seller’s fee and the buyer’s fees.
Do I need title insurance on a newly constructed home?
Yes, even if you are the first occupant of the property, does not mean that you are the first owner of the land. The title insurance policy will protect against any claims to the land that your home sits on. The builder could at one point used the land as collateral against another loan.
What am I required to bring to MY settlement?
When attending settlement it is required to provide photo identification to confirm all parties in the transaction. A Valid Drivers License, Military ID or Passport are acceptable forms of identification. Call us if you have any questions about identification and acceptable forms of ID. For new purchases the buyer is required to bring any applicable down payment funds to the closing. Monies need to be certified funds in the form of a cashiers check or you can send funds by having your bank wire the funds directly. A bank wire is the preferred method in most situations. Whether purchase or a refinance where buyer/seller/borrower is receiving funds from the transaction it is always good to bring a cancelled check for the wire transfer, unless you would like to receive a paper check.