Title Insurance

1. What does a closing attorney do?
      The purchase of a house will require that you enter into a legally binding contract with the seller of the property. An experienced real estate attorney can help you understand how the contract affects your rights and what legal obligations it imposes on you. Our office, along with your real estate agent, will be responsible for keeping track of your transaction and bringing it to a smooth conclusion.

2. What is title insurance and why do I need it?
     Title insurance insures that your title is good both on and off the record, and protects against fraud and forgeries within the record. The bank will require that the buyer purchase title insurance from an approved title insurance company to insure its mortgage. This is known as Lender’s Title Insurance. The buyer must pay the premium even though the policy only benefits the bank. However, at the closing the buyer has the opportunity to purchase Owner’s Title Insurance that will benefit the buyer.

3. Am I required to purchase title insurance?
     A lender will always require a lender’s title insurance policy, for both purchases and refinances. An owner’s policy is an option to a buyer at closing, and it strongly recommended by Staton Law Firm. When you refinance you are obtaining a new loan, even if you stay with your original lender. Your lender will require lender’s Title Insurance to protect their investment in the property. You will not need to purchase a new owner’s title policy; the one you bought at the purchase is good for as long as you and your heirs have an interest in the property.

4. How long does my coverage last?
      An owner’s policy will last for as long as you or your heirs retain an interest in the property and, in some cases, even beyond. A lender’s policy will expire upon payment in full of a mortgage.

5. How are title insurance premiums calculated?
      Fees for title insurance vary depending on the location of the property to be insured, as well as the regulation status of the state where the property is located. The premium’s cost is most heavily dependent upon the value of the property. If you would like a quote on your title insurance please contact our office.

6. What type of risks and claims does a title insurance policy protect against? 

• In-complete deeds (for instance if it was not signed by business partner, all heirs or other co-owner),
• Improperly recorded deeds,
• Forgery or impersonation of Seller or another involved party,
• Challenges regarding the lack of competency, capacity or legal authority of an involved party,
• Incorrect or incomplete legal descriptions,
• Pre-existing zoning violations,
• Non-recorded liens,
• Prior mortgages, easements and use restrictions that are on recorded but not disclosed in the policy,
• Incorrect or incomplete surveys

Closing

 1. What do I need to do to prepare for Closing?
     First, you should pay close attention to the instructions given by your Realtor and requests made by your Lender. In addition, we will guide you throughout the process of preparation for the closing, and any information we need from you as well as any documentation that you need to bring to the closing with you. Being prompt in providing all requested information is key to keeping all the processes moving that ultimately enable us to conduct a smooth and seamless closing transaction for you.

2. What should I know about buying and selling a house?

     The purchase of your home is likely to be your single greatest financial investment. You should have an attorney review the contract to buy or sell your house before you sign a binding contract.

3. How long before I can close?
     The time it takes to get to a closing of a real estate transaction is largely determined by the contract between the parties and the time needed to get lender approval if a mortgage is involved. In a typical residential transaction, most contingencies (other than financing and sale of the Purchaser’s residence) can be removed within two weeks. Financing should be resolved within 30-45 days.

4. How long will my closing last?
     Closing a transaction in our office with a loan typically takes between 20-30 minutes.

5. Do I need an agreement in writing in order to purchase property?
      Yes. Any agreement for the sale of real property must be in writing in order to be binding upon the parties. While licensed real estate agents and brokers can assist in preparing real estate purchase contracts by filling in blanks on pre-printed purchase agreements, they cannot dispense legal advice, and you are always within your rights to request that your real estate attorney prepare the purchase agreement, or review the document your real estate agent has prepared before you sign it. You can even include an attorney approval provision in any agreement you sign. If your transaction requires anything other than filling in blanks, only an attorney can assist you with this. 

6.  How do I bring my funds to closing?

     You can either bring a certified check made payable to Staton Law Firm Trust Account or you can wire your funds for closing.  Please contact us to obtain wiring instructions.

7.  How quickly will I know the amount I have to bring to closing?

     We try our best to have a final figure for you 48 hours in advance of closing, however this is not always possible when a lender has not provided the final figures for your closing.  We will communicate the final cash to close amount as soon as we obtain a final closing amount from your lender.

8.  Do I have to be physically present to close?

     No, you do not have to be physically present in our office to close.  However, if you are not present in the office you will be responsible for courier fees to mail the documents to you and responsible for obtaining a notary to notarize the required documents.  Another option is to appoint a power of attorney that would be available for closing.  There are costs associated with the preparation of this document and the recording of the power of attorney.  If you have a cash purchase, then the buyer does not have to physically present and can electronically sign the HUD Settlement Statement.

If you would like to ask any other questions, or would like to learn more about the title insurance or real estate closing processes, please contact us.