A title company has two “main jobs” in a real estate transaction: (1) title insurance and (2) escrow services.
Title insurance is regulated by the State and all prices are set by the State. Title insurance is generally required by all conventional lenders to ensure that the title of the property is clear. Owner’s Insurance covers the Owner of the Property for certain unforeseen defects in title.
The Reason You NEED TITLE INSURANCE:
Suppose you purchase your dream house and when you arrive in your moving van, you find someone else in the house claiming they own the property. What would you do?
Or Suppose you are awakened early one morning to find a construction crew preparing to bulldoze your entire front yard for a railroad track to be built on an easement claimed to pass through your yard. What happens now?
What if you received a notice of past due property taxes which must be paid within a few days or the property will be put up for sale?
An Owner’s Policy of Title Insurance is designed to prevent these problems from ever happening, and give you a source of protection if something unforeseen does occur.
Title Insurance is the only guaranteed protection against real estate title losses. It insures your ownership of your home. Your lender will require Lender’s Title Insurance but that only protects their interest. it insures the lender for the original amount of the loan against invalidity of the mortgage which secures the loan.
The Owner’s Policy of Title Insurance protects you. It informs you of any other interest in the property, such as liens and encumbrances, and protects you against unknown claims of ownership to your interests in your property.
Most people have fire, car, and life insurance. You pay premiums every year to continue your protection. When you purchase an Owner’s Title Insurance Policy, you pay your premium only once for coverage that will protect your initial investment for as long as you own your home. Title Insurance protects you from hidden risks not revealed by an examination of the public records.
Common examples of hidden risks include:
- Forgery or Fraud
- Missed Taxes
- Undisclosed or Missing Heirs
- Incorrect Legal Descriptions
- Conveyance By a Minor
- Incorrect Indexing at the Courthouse
- Mental Incompetence of Grantors
- Missed Easements
Escrow services are also done by Liberty Title, Inc. Escrow is done by an independent third party to make sure that all documents and monies are transferred at the same time. We also ensure that all documents are properly signed and recorded. We do this by having all funds deposited in to our trust account and all documents held in our files until everything is completed. Once everyone has turned in their funds and documents, then we distribute all funds according to the buyer’s and seller’s instructions.
The escrow holder my be any disinterested third party. An escrow officer must remain completely impartial throughout the entire process.
Liberty Title can do real estate settlement closings in all counties of both Ohio and Michigan.