When purchasing or refinancing a home, you will have settlement conducted by a Title Company, the title company is also the licensed title insurance provider. Up to two policies will be issued. Maryland Specific: If you are purchasing a property and taking out a loan, the lender will require a Lenders Title Insurance Policy. And you will have the option of purchasing an owners title insurance policy for your protection. If you are refinancing your current home then the lender will only require the lender's policy. In both instances the title insurance policies will be issued at the time of closing.
A Lender will require a Lenders Title Insurance policy if they are extending credit on a property. The Lenders title insurance policy is based off of the Loan amount that the borrower receives. It will only protect the lenders interest in the property if a problem arises on title.
Your lender may well require title insurance. It protects you too, and it's not usually too expensive in the scheme of things. Your lender will typically require a Mortgage Policy coverage for any loan that will be in a first lien position or a high dollar HELOC (Home Equity Line of Credit). Please note that the Mortgage (Lender's) Policy does NOT cover you. It covers the lender only, and only for the life of the mortgage. Once the mortgage is paid off, the coverage no longer exists. This is why it is necessary to obtain mortgage title coverage every time you refinance, because you are creating a new lender/new loan interest in the property. An Owner's Policy covers your interest. If you purchased the house, typically you simultaneously obtain an Owner's Policy and a Mortgage Policy, if a lender was involved. An Owner's Policy covers all events up to your date of purchase. It is in effect for as long as you own the property.
Usually a lender will only request a basic Lender title insurance policy. While there is an enhanced lenders policy, the lender usually only requires a basic policy for there protection. The Loan policy is usually based on the dollar amount of your loan. This policy only protects the lender interest in the property if problems arise on title. Because the Lenders policy only protects the lender up to the loan amount that is taken, it is a good idea to look into getting an owners policy to protect the buyer of the property, this policy is based on the purchase price of the property, and will help protect the equity that is built over time.
A Title Commitment is a result of a title search of the public records. It carries no liability and does not insure the addressee of the accuracy of the information. A Title Commitment is written in anticipation of a future Title Insurance Policy. A Title insurance policy insures someone or some entity against a possible loss. Example: John Smith purchases a property and he has title insurance and the policy is dated Jan 2, 2008. John Smith insured by the title insurer that he has free and clear title subject to the exceptions in his title policy. TitleExaminer237 http://sites.google.com/site/michigantitleexaminerportal/
The lender requires a policy at time of purchase or refinance to protect itself, but this policy provides no coverage whatsoever for the owner in case of a title defect. The owner should purchase an owner's policy at the time they buy the house to cover their interest. They will not need to purchase another owner's policy when they refinance. The policy will cover them as long as they own the house. Added by Title Geek: The OWNER'S policy covers/discovers the history of owner's in the property as well as identifies easements, condition, prior agreements, rights of ways and many other matters affecting the property. The Owner's policy insures to the date you purchased and recorded the new deed into your name. It does not cover YOUR acts after you have purchased the property. The MORTGAGE policy covers the Lender's financial interest into the property. All lender's require mortgage title insurance on a purchase or refinance to cover their financial interest in the property. They will require updated coverage on a Mortgage Modification. In many cases, they waive title insurance on a Home Equity Line of Credit (HELOC), based on the amount of the HELOC. Typically, if the HELOC is less than $50,000.00, they may not require title coverage.
When purchasing or refinancing a home, you will have settlement conducted by a Title Company, the title company is also the licensed title insurance provider. Up to two policies will be issued. Maryland Specific: If you are purchasing a property and taking out a loan, the lender will require a Lenders Title Insurance Policy. And you will have the option of purchasing an owners title insurance policy for your protection. If you are refinancing your current home then the lender will only require the lender's policy. In both instances the title insurance policies will be issued at the time of closing.
The account title used for owner's equity can be simply "Owner's Equity." There may be sub accounts as part of the owner's equity part of the balance sheet, such as Retained Earnings.
A Lender will require a Lenders Title Insurance policy if they are extending credit on a property. The Lenders title insurance policy is based off of the Loan amount that the borrower receives. It will only protect the lenders interest in the property if a problem arises on title.
A Title Insurance company cannot force you to purchase an Owner's Title Insurance Policy. However, if you are obtaining a Mortgage or using a Lender for a refinance,then the Lender will require that they are protected by a Lender's Title Insurance Policy, which the borrower will pay for. If you are purchasing a new property, it is usually suggested that you purchase an Owner's Policy at the same time the Lender is being issued a policy. All Title Insurance underwriters offer a Simultaneous Issue price when the Owner's Policy and Lender's Policy are issued at the same time. You may want to shop around, where the State you live in sets the premium for one Policy, the price for the Simultaneous issued policy may vary greatly from Title agent to Title agent. For cash purchases you are not required to purchase Title Insurance, but you will have a very hard time getting a Title Company to close the sale as the most income for Title Companies is the portion of the title insurance premium they get to retain. ("Title Agent" in this answer can be a Real Estate Attorney or Title Inurance Company) = Comment = A title agency may be willing to act as a 3rd party uninterested Settlement/Escrow agent in a cash transaction. It is not uncommon to use a title agency for this service vs an attorney (depending on your standard local practices in your state/county). The title agent will receive funds from the buyer and conduct the signing of documents, disburse all payoffs, pay taxes, etc. and send the documents in for recording. The title agency receives a fee for acting as the settlement agent, but does not guarentee the condition of the property title you are closing in this scenario. In lieu of an Owner's Policy for coverage, you may want at the very least, a Report on Title (Title Opinion in some states), whereas the title agency has done the standard searches on the property and presents it in Report form, without any insurance coverage. This allows the Buyer to know the true condition of the property's title prior to closing and if there have been past issues in deed/title, they may or may not elect to go with an Owner's Policy to protect their interests in the property they are buying. Lenders will always require a Loan Policy on a purchase or 1st lien refinance, and typically on a standard 2nd mortgage. Depending on the amount of a Home Equity Line of Credit (HELOC), they may or may not require coverage on this type of loan.
Your lender may well require title insurance. It protects you too, and it's not usually too expensive in the scheme of things. Your lender will typically require a Mortgage Policy coverage for any loan that will be in a first lien position or a high dollar HELOC (Home Equity Line of Credit). Please note that the Mortgage (Lender's) Policy does NOT cover you. It covers the lender only, and only for the life of the mortgage. Once the mortgage is paid off, the coverage no longer exists. This is why it is necessary to obtain mortgage title coverage every time you refinance, because you are creating a new lender/new loan interest in the property. An Owner's Policy covers your interest. If you purchased the house, typically you simultaneously obtain an Owner's Policy and a Mortgage Policy, if a lender was involved. An Owner's Policy covers all events up to your date of purchase. It is in effect for as long as you own the property.
See: Title IX
Usually a lender will only request a basic Lender title insurance policy. While there is an enhanced lenders policy, the lender usually only requires a basic policy for there protection. The Loan policy is usually based on the dollar amount of your loan. This policy only protects the lender interest in the property if problems arise on title. Because the Lenders policy only protects the lender up to the loan amount that is taken, it is a good idea to look into getting an owners policy to protect the buyer of the property, this policy is based on the purchase price of the property, and will help protect the equity that is built over time.
Yes. They can! The car is their equity basically!
A Title Commitment is a result of a title search of the public records. It carries no liability and does not insure the addressee of the accuracy of the information. A Title Commitment is written in anticipation of a future Title Insurance Policy. A Title insurance policy insures someone or some entity against a possible loss. Example: John Smith purchases a property and he has title insurance and the policy is dated Jan 2, 2008. John Smith insured by the title insurer that he has free and clear title subject to the exceptions in his title policy. TitleExaminer237 http://sites.google.com/site/michigantitleexaminerportal/
The persons who are on title must both sign for a equity line of credit.
No. You are not required to reside at the home that you draw your equity from but you must own it, which means you must be on the title.