Frequently Asked Questions…

Who is covered by Title Insurance?

For the Lender: Title Insurance covers the outstanding balance on mortgage for the lender.

For the Buyer: When acquiring a property, it’s a good idea to have insurance, since it will give you protection in case there’s a title claim against your home.

What is Title Insurance?

Title Insurance is a contract to protect an owner against losses arising through defects in the title to real estate owned. If a title is insurable, the company guarantees the owner against a loss due to any defect in title or expenses in legal defense of the title, pursuant to the terms of the policy. The process of examining all relevant records to confirm that the seller is the legal owner of a property and that there are no liens or other claims outstanding.

When is a Title defective?

There are many possible causes of title defects that no examination can disclose. That is because they have never been recorded and thus do not appear in the abstract. A title insurance policy protects the owner against all these hidden risks; those listed below and many more:

Fraud: False claims of ownership, forged deeds, wills, signatures, conveyances, instruments, false representations, false records of all sorts, illegal acts of trustees, guardians, administrators and attorneys.

Human Error: Errors in copying, indexing, recording; errors by administrators, executors, trustees, guardians, and attorneys; destruction of records.

Improper Deeds and Wills: Deeds by persons of unsound mind, minors, deeds delivered after death of without the grantor’s consent; invalid, suppressed erroneous wills, missing heirs, unsettled estates.

Liens and Other Rights: Liens for unpaid estate, income and property taxes, mechanic’s liens; unpaid mortgages; irregular court proceedings, defective foreclosures; sewer and water assessments.

Where do I get Title Insurance?

Contact KPC Title to quickly, efficiently and accurately process your commitment and policy.

Why is Title Insurance important?

It provides you with protection of your property, and it can save you money, time, trouble — even your home. When a person buys a car or consumer goods, they seldom need to know whether the former owner is married, single or divorced, whether they have paid their taxes or are involved in a lawsuit. But when a person buys a home, it is necessary to have all the information and much more. For a while he or she may own the property, others may also have rights or prior claims in the same real estate.

How much does Title Insurance cost?

The one-time premium is directly related to the value of your home. It is a one-time only expense, paid when you purchase your home, yet it continues to provide complete coverage for as long as you or your heirs own the property.

Can I receive Title Reports via email?

Yes, you can receive your title reports from KPC Title in three different ways fax, e-mail or overnight mail. For e-mail, using the latest in high-speed scanning technology, we prepare your report in industry-standard Adobe PDF format that can be viewed and printed with Adobe Acrobat Reader (the same software you use with KPC Title Forms) and send it to your email account. Be sure to let us know your email address and that you would like to receive your title reports via email.

How does a Title Company obtain the information to protect your property?

A title insurance policy recognizes and eliminates risks prior to closing, rather than assuming risk on a probability or actuarial basis. Title companies perform a thorough and detailed search in the public records to establish rights to and in the property and to limit possible claims to it.

What happens if there is a claim?

Title Insurance is the vehicle through which real estate transactions are completed with the protection from legal and financial claims of others. Title Insurance assures that any claim will be defended and, if warranted, paid. There are a number of title problems that could occur from error to outright fraud. Fortunately, there is a universally accepted means of dealing with title issues.

How much value does Title Insurance add to the marketplace?

Title Insurance is a significant part of the economic well-being of the marketplace. The fuel that sustains the refinance engine is the buying and selling of mortgages on the open market. That market, along with government-sponsored entities such as Fannie Mae and Freddie Mac, provides liquidity for the real estate finance industry. Title Insurance enables lenders to convert long-term assets into cash, which can be reinvested into new mortgages. There are tens of millions of mortgages outstanding totaling trillions of dollars. These mortgages can be safely traded, invested and reinvested again because Title Insurance offers a secure and reliable protection against claims of others or outright defects in ownership or undisclosed liens. With a Title Insurance policy in place, an investor is freed from these concerns and the transfer of interest is easily completed.

Who benefits from Title Insurance?

Title Insurance, in one form or another, has been in existence for well over 100 years. Title Insurance protects homeowners and lenders alike. Title Insurance facilitates the easy transfer of ownership interests and provides assurance in the mortgage transfer industry. Title Insurance holds all components of the real estate transaction firmly together in an industry that is socially significant and economically substantial.