Services
What is Title Insurance?
An Owner's Policy of title insurance
assures that the home you are buying is free of issues that could cloud the title. Prior to issuing the insurance policy and before you close, title professionals conduct an exhaustive search to check or liens, encumbrances, easements, and other problems that could affect the status of the title. If a problem is discovered, title professionals typically take care of it, or notify you so that you can make an informed decision. If a title defect covered under the policy isn't discovered until after you close, the insurance kicks in to cover your losses.
What are some typical problems that might cloud a title? There may be a lien on the property for unpaid property taxes by the previous owner, or a mechanic's lien by a subcontractor who performed work on the property and was never paid. Other examples include a prior unpaid mortgage or covenants and restrictions on the use of the property.
Sometimes there are problems that go undetected during the title search, such as fraud or forgery, a mistake in the public record, or an unknown heir claiming ownership. If this occurs, you would file a claim with your title insurance company.
The truth is, claims are rare in the title insurance business because of the due diligence that is performed before the policy is issued. Most of the premium dollar goes to pay for the upfront costs of performing the title search and clearing up title issues before you close.
Thorough Property Research
The property of your dreams may have a few legal nightmares hidden away. Trust us to research the land's records and the existence of any liens. We look through public records for title defects, missed liens, improperly handled probates, missing signatures, and more. If there are any problems that prevent us from finalizing the real estate transaction, we contact the parties necessary to "clear" the title. Once you have an offer with an earnest value deposit, the transaction is considered valid. The title insurance guarantees ownership and provides protection against claims, so you can be rest assured knowing that your ownership is valid.
Expanded Coverage
Now that we've covered what traditional owner's title insurance covers, let's discuss what an expanded policy covers, and why you may want to purchase this coverage.
An expanded title insurance policy covers many title defects not covered under a traditional policy, including issues that did not exist at the time you purchased your property. Expanded coverage typically covers things like access to the property, zoning violations, post-policy easement issues, encroachment removal, and building permit violations.
An example would be if someone used a portion of your land as an easement to their property, and you wanted to build something that would block their access. They file a claim asserting their rights based on their continued use over time. A judge then orders a cease and desist order on construction until the matter can be heard in court (which could take months or years). Because this occurred long after you purchased title insurance, a traditional Owner's Policy wouldn't cover it. But with an expanded policy, the title insurance company would negotiate with the parties involved to reach a settlement, or, pay your legal expenses to defend your claim in court. If you were to lose your case, the title insurance company would compensate you for your losses.
Another benefit of expanded coverage is that it ensures you even after you no longer hold title to your prope1iy. This means that if you are sued for certain issues after you relinquish the title through a sale, the expanded coverage policy continues to protect you. And many underwriters increase the coverage amount each year as a hedge against inflation.
Settlement Services and Escrow
When you need an impartial third party escrow service to handle transactions during closing, trust
Tri-County Title Agency, Inc. to explain, obtain, notarize, and transmit documents to the lender for founding authorization in
Plymouth, Michigan. Preparation for the escrow process takes one to two days, and the closing takes a few hours. We handle the transaction, including the lender money, and upon closing, the funding is disbursed and after the recordable documents are recorded, the register of deeds of the policy is issued.