Many aspects of refinancing, buying, or selling a home can be confusing and a straight answer can be hard to find. If you don't see an answer to your question below, please feel free to contact us anytime.
YOU DO! It is your right to decide who your title company will be. Many lenders and agents have relationships with title companies and may try to have you use that company. Be smart - check out their fees and services and shop around - not all title companies are created equal. Contact DB Title, LLC for a free, no strings, estimate on our closing costs to make sure you're getting the best deal and the best service.
Title insurance is a safeguard against loss arising from hazards and defects already existing in the title of the subject property.
An owner's policy and a lender's policy are both contracts of indemnity under which the title insurer agrees to protect the insured party against certain defined risks.
The Lender's Policy is based on the dollar amount of your loan and protects the lender's interests in the property against a problem with the title. The policy coverage decreases each year and disappears as the loan is paid off.
Owner's title insurance, in the amount of the real estate purchase, is purchased for a one-time fee at closing and lasts as long as you or your heirs have an interest in the property. Owner's title insurance fully protects the buyer should a problem arise with the title that was not uncovered during the title search, and pays for any legal fees involved in defending a claim to your title.
Purchasing an owner's policy of title insurance is not required. However, it serves to protect possibly the most important investment you'll ever make - the investment in your home. You will have to purchase a lender's policy at closing, but this only insures the lender alone and you as the purchaser do not benefit from that policy in any way.
With an owner's title insurance policy, you as owner have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.
Your owner's policy may protect you against:
- False impersonation of the true owner of the property
- Forged deeds, releases or wills, Instruments executed under invalid or expired power of attorney
- Undisclosed or missing heirs
- Mistakes in recording legal documents
- Misinterpretations of wills
- Deeds by persons of unsound mind
- Deeds by minors
- Deeds by persons supposedly single, but in fact married
- Liens for unpaid estate, inheritance, income or gift taxes
Acquiring an owner's policy will also make you eligible to receive the reissue rate on the lender's policy you must purchase if you refinance.
If you have previously purchased an owner's policy, you may be entitled to a discount, up to the amount of your owner's policy, on your new lender's policy.
If you are buying a new home, if your seller provides you with their owner's policy it is possible you may be eligible for a reissue rate as well.
DB Title makes the settlement process as easy and convenient as possible. Our closing agents will come to your agent's or broker's office, to your home or office, or we can conduct the settlement in our McLean, VA office. We offer evening and weekend closings at no additional charge.