Answer: A title is the owner's right to possess and use the property.
What is title insurance?
Answer: Title Insurance is protection from past events which may or may not be a part of the public records, but that can affect a new owner’s interest in the property being sold to them.
Title Insurance protects against title defects, such as fraud, forgery, incompetence or missing heirs that even the most diligent title search may not discover.
Many laws in NJ protect the owner of a property and the owner’s heirs. However, laws also protect others with rights to a property such as mortgage and lien holders, municipalities and the United States (for tax liens), and others with rights to fuel and natural resources. Because of the laws protecting both owners and others who have an interest in the property, property should only be purchased after an extensive investigation of the title. Despite these careful investigations, issues can arise like errors on the record, missing heirs, mental incompetence of the seller, marital status, etc. The only protection a property owner can get against the above is the purchase of a title insurance policy.
What is a title search?
Answer: A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The search verifies the seller's right to transfer ownership of a property and will discover any claims, defects, and other rights and burdens on the property.
Is Title Insurance Expensive?
Answer: The cost of title insurance is small in comparison to the cost of the investment and the value of the property. In New Jersey, title charges are regulated by the New Jersey Department of Banking and Insurance.
How much does Title Insurance cost?
Answer: Title Insurance is a regulated industry and there are set premium fees that must be charged. The rates vary depending on whether it is a refinance or purchase. For a purchase, the premium is based off of the purchase price. For a refinance, the premium is based off the refinance loan amount
Your owner’s title policy is paid by a one-time premium at closing. Each time you refinance, your lender will require a new loan policy which requires the payment of a new, but reduced, premium.
See our Rate Calculator to determine your title insurance cost.
Will the company make any charges other than a premium charge?
Answer: Yes. There are also search and exam charges. These charges are regulated by the Department of Banking and Insurance. The exam charge is $100. Other search charges, such as those for judgments, taxes and assessments, are charged at the actual cost to the company. Lender’s also require a CPL (Closing Protection Letter) and various endorsements, which are $25 each, as mandated by the NJDOBI
My current mortgage is covered by a Title Insurance Policy and now I am refinancing, do I need another policy covering the new mortgage?
Answer: Yes, you will need a new policy. A loan title insurance policy, which protects the lender's
interest only, remains in effect only as long as the specific mortgage remains on the property. When you refinance, your new lender requires title insurance covering their new mortgage on your property. It provides protection to the lender against events that may have occurred since you purchased the property. The new policy, following updated searches, insures the lender only.
You may be entitled to a reduced rate based on the amount remaining on the current mortgage.
Do I need an attorney to close my loan?
Answer: No. However, we strongly recommend it. Anyone with a title insurance license may close loans but they are not allowed by law to give you legal advice. If a defect on the title arises, only a lawyer is allowed to advise you. Some bank documents may only be explained by a licensed attorney. It is in your best interest to have an attorney working on your behalf.
Will it cost more to have my loan closed with an attorney?
Answer: Not necessarily. The amount charged by many attorneys to close and disburse a refinance is the same as the minimum charge mandated by the NJ Department of Insurance for a title insurance company or agent to close and disburse a refinance.
Do I have to travel to Trusted Title’s office to close my loan?
Answer: No. Trusted Title works with closing attorney’s who will come to your home or office to close your loan. Our closing partners are available to close loans anytime of day and at any location convenient for our clients.
What happens if there is a claim against my property? Do I have to pay for the legal defense in the matter?
Answer: The title company will hire and pay expenses for legal counsel and take the action it deems appropriate to clear the claim. If the company is not able to correct the problem, your losses will be covered by the policy.
How long does it take for the company to issue a Commitment and for me to get to Closing?
Answer: Trusted Title does everything possible to accommodate our clients’ timelines. Typically, it will take one to two days to complete the necessary searches and do a thorough examination of the title. If you require a rush, examinations can be done same day upon request.
What kind of problems can a title search reveal?
Answer: A title search can show a number of title defects and liens. Among these are unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictio ns limiting the use of the land.
Are there any problems that a title search cannot reveal?
Answer: Yes. There are some "hidden hazards" that even the most thorough title search may never reveal. For example, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other possibilities include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names and clerical errors in the records. Trusted Title will always try to discover any of the above.