Showing posts from November 11, 2007

Title Insurance Glossary

Title Insurance Glossary
Abstract of TitleA summary of the public records
affecting the title to a particular piece of land. An attorney or title
insurance company officer creates the abstract of title by examining
all recorded instruments (documents) relating to a specific piece of
property, such as easements, liens, mortgages, etc.Abutto touch or border upon. For example, a piece of land
bordering on a street or an adjoining property is said to abut such
street or property.Accretiona natural increase of land along the shores of a body of water.Acknowledgmenta formal declaration before a notary public
or qualified officer that the person signing a document is doing so
voluntarily and using his or her legal name and signature; popularly
called notarizing.Actual noticeInformation that can be observed, heard, or otherwise sensed.Administerto pay the debts and finalize up the business of a deceased person's estate.Adverse Possessionacquisition of title to real property through continued occup…

How your Title Insurance Dollar is Divided Up

Often misunderstood, title insurance is viewed by many home buyers
as an unusually high expense in comparison to other closing costs in
their real estate transaction. Lender costs are generally accepted, as
borrowers realize they are getting something valuable for their money,
a mortgage to purchase the property. City or county transfer taxes are
accepted, as they are a non-negotiable requirement of most real
property transfers. Buyers understand and pay for fire or hazard
insurance policies on their property, anticipating the policy will
reimburse them in case of a loss. Why then are title insurance
premiums, a one-time charge for a title policy lasting an indefinite
period of time, often considered not worthy of the cost?

Melanie and Bill Murphy, grudgingly paid out $950.00 to purchase
title insurance on a $250,000.00 home they were buying in Richmond,
Virginia. As required by their lender, the Murphys also purchased a
lender's policy to protect the mortgage holder's interest in the

Who Determines Title Insurance Rates And Fees?

Homeowners often wonder who sets the fees charged for title insurance
and title searches. Are they regulated by the state or by the
individual title companies? Are these fees negotiable in any way?
Buyers and sellers often accept these charges without question,
accepting the fees as set forth by the title company or closing agent.
The answer is that title insurance fees are not all alike. The
fees may vary from state to state, and may not be set by law in every
state. In many states, each title company may set its own rates and
then will file those fees with the state insurance commissioner. Once
filed, those fees must be adhered to. In other states, there may be a
rate, called a "promulgated rate" which is the minimum amount set by
state law which a title company must charge for title insurance and
title searches, but the title company is allowed to charge a higher
rate, if it wants to. Although this might sound confusing, the answer is to
question your title or closing agent at the be…