Q: How can I get a Reissue Credit?
A: If you have ever had a previous owners policy with ANY title insurance company there is a “Reissue Credit” given and you pay a reduced premium.
If you are required by a lender to pay for a lenders policy (which protects the lenders money from title claims for the duration of the loan), and you also elect to pay for the owner’s policy to protect your interests for as long as you own the property…..there is a SIGNIFICANT multi-policy discount. Ask your closing agent about the rates.
Q: What is CRV?
A: CRV (Certificate of Real Estate Value) is documentation of the selling price of the property and any special terms associated with the transaction. The CRV must accompany the deed when it is submitted for recording. If not complete and correct, the property transfer cannot be finalized. The CRV asks for basic information such as name, address, phone number and social security numbers of the parties involved in the transaction. Additionally, the property information and a legal description must be included. How the new buyers intend to use the property must be specified also.
Q: What are Tenants in Common?
A: Tenants in Common are parties that have equal say, each person holds separate individual interest, and each may sell his interest or dispose of it by will, if persons holding interest should die without a will, his heirs inherit his undivided interest.
Q: What is a Joint Tenancy?
A: A Joint Tenancy is when parties on title have equal say, with the provision that upon the death of a joint tenant, this share in the property passes to the surviving tenants (like a partner, not heirs). A joint tenant cannot legally sell or encumber his interest without the consent of all the other joint tenants.
Q: What is a Contract for Deed?
A: A Contract for Deed is legal agreement to which seller agrees to provide deed when conditions agreed upon between he and buyer are met. Upon conditions being met… a warranty deed is created. A CD is considered a “sale” and must be reviewed by an attorney. Or….A contract for the sale of real property in which the buyer pays in installments: the buyer takes possession of the property immediately, but the seller retains legal title until the full price has been paid. Also called a conditional sales contract, installment sales contract, land contract or real estate contract.
Q: What is a Limited Warranty Deed?
A: A Limited Warranty Deed states that the seller has done nothing to make the title bad while they owned it. Does not guarantee the title before or after ownership. Or……A deed in which the grantor warrants title only against defects that may have arisen during his or her period of ownership. Also called a special warranty deed.
Q: What is a Quit Claim Deed
A: A quit claim deed does not imply that the seller holds title, but gives buyer interest or rights which the seller had; the seller abandons claim or interest in the property. Or….a deed that conveys any interest in a property that the grantor has at the time the deed is executed, without warranties.
Q: What is a Warranty Deed?
A: A warranty deed states that the seller has good title to the land with no material defects. It is a deed in which the grantor warrants the title against defects that might have arisen before or during his or her period of ownership.
Q: What is a title?
A: It is the right to own, possess, use, control and dispose of land. It is your lawful ownership of real property.
Q: What is a title search?
A: A title search is a detailed examination of the historical, public records concerning a property. These records include deeds, court records, property and name indexes, and many other public documents.
Q: What is Title Insurance?
A: It is insurance that protects your legal property ownership rights from any claims. There are policies to protect the owner, the lender or both.
Q: Do I need Title Insurance?
A: A title search reveals issues that are detectable by a search of recorded documents. However, all problems that may come about are not identifiable through recorded documents. Title insurance protects your investment from the unknown history of the property.
A quick example: A title company or an attorney does a search on your property, and the title looks clean. However one of the previous owners had an unknown wife &/or children in another state that was not identifiable. Should that wife or children make a claim of ownership there is a high likelihood that without Title Insurance…..the buyer could lose his ownership.
With an owners policy of title insurance, if a claim is made against the title, the underwriter must pay any and all costs associated with defense against the challenge, up to the value of the policy, and if unsuccessful in that defense, reimburse the landowner for any reduction in the value of the land.
Q: What if I’m just refinancing? Do I need an owners policy of Title Insurance?
A: Most people purchase title insurance at the time of a sale because that is the time of which the necessary expenses are occurred, however it is possible to purchase an owners policy at any time. Because of the work needed to be performed…..the process of purchasing title insurance at the time of refinancing can take more time than doing a refinance without Title Insurance, therefore it is not typically done. If you buy an owners policy at the time of a purchase, it would be necessary to purchase another policy at the time of refinance.
Q: What about new construction? Do I need Title Insurance?
A: Yes. Construction of a new home raises special title problems for the lender and owner. You may think you are the first owner when constructing a new home on a purchased lot. However, there were probably many prior owners of the unimproved land. Purchasing owner’s title insurance will protect you against these problems and pay for any legal fees involved in defending a claim. If you are considering a New Construction loan it is preferable that work begins only after the mortgage has been recorded.
Q: How much is Title Insurance? Who pays for it?
A: Title Insurance charges vary in different sections of the country, however it is based on the purchase price of your home and/or land. You pay for an owner’s policy of title insurance only once. There are no monthly premiums.
If you have ever had a previous owners policy with ANY title insurance company there is a “reissue credit” given and you pay a reduced premium.
Cygneture Title Solutions LLC
Brainerd Lakes Office:
13021 Evergreen Drive
Baxter, MN 56425
St. Cloud Office:
512 3rd Street N
Waite Park, MN 56387
Fax: 218-828-087 3
2 Third Avenue NW
Crosby, MN 56441