1. What is Title Insurance?

Title insurance protects the insured from covered loss as a result of defects in title, such as an unreported lien or a surveying errors, prior to the date of the policy. Title insurance covers the insured for as long as they have an interest in the property. It also protects the lender’s interest in title regarding the priority of its lien, among other things.

2. Why do I need Title Insurance?

Title Insurance protects the insured from defects in title. Such defects in title can range from undisclosed liens, unrecorded deeds or mortgages, forged documents, tax liens that are not settled. Even the most thorough title searches may neglect to reveal these discrepancies. Title Insurance covers the cost of defending the insured’s rights against any covered claim. It ensures that no individual or governmental agency has any right, lien, or encumbrance on the property. Without an Owner’s Policy you may not be protected against claims of this nature. The owner could be held completely liable for the liens, judgments and other claims against their property. One can end up spending a large sum of money in defense against these claims, only to lose the property in the end. With an owner’s policy, if such an issue arises, the insured will be defended at no cost for all covered claims and may recoup actual losses up to the amount stated on the policy.

3. Will my lenders requirement for title insurance protect me?

No, the lenders policy is separate from an Owner’s policy. The lender’s policy protects the lender and insures the validity of that specific loan and only up to that loan amount. A simultaneous issue of a Lender’s coverage is $25.00 when purchased with an Owner’s policy. Normally the Lender will require the borrower to purchase the loan policy, for both purchase money mortgages and refinances.

4. What about my homeowners insurance, won’t that cover me?

No, homeowners insurance is used for claims regarding people and/or personal property. It will not protect the owner or lender against claims arising out of title matters.

5. How much does Title Insurance cost?

The cost of title insurance varies. For a purchase, a basic rate is charged based on the cost of the transaction. A reissue rate can be applied if the seller presents the buyer with a current title insurance policy that is less than 10 years old. In the case of a mortgage refinance, the rate is based upon the amount of the loan(s) being refinanced with the difference from the new loan being charged the basic rate. The main factor to remember is that it is a onetime premium paid to obtain the title insurance. The coverage from the owner’s policy remains in place throughout the time of the insured’s interest in the property. All of the insurance premiums and other fees involved in title insurance and settlement fees are regulated by the State of New Jersey, Division of Banking and Insurance. All States differ in this practice, but follow Federal RESPA regulations.

6. How do I obtain Title Insurance?

When there is a contract of sale for real property, either the purchaser, their real estate broker or attorney can order title insurance. The purchaser can always direct their attorney or realtor to use a specific insurer or agent. Attorneys are always recommended to review contracts because title agents can not practice law. However, a title insurance agent can provide closing or settlement services for a much lesser cost.

7. Will the title company be able to do the closing?

Yes, professional settlement services are provided for closings in all 21 counties of New Jersey, and can be arranged for nationwide convenience if necessary. Settlement services involves preparation of HUD-1 settlement statements, affidavits of title, lender requirements and arranging for closing date, payoff of existing liens, taxes and assessments, recording of documents and disbursement of funds. A property survey can also ordered on behalf of the buyer. Upon the recording of new documents, and cancellation of existing liens, the final title policy is issued.

8. I am just refinancing, are the procedures the same?

The borrower may direct their mortgage broker to order title insurance from whatever insurer or agent they choose. If no relationship exists the mortgage representative can recommend someone they work with regularly. In this case, the policy is being purchased for the lender and does not require the same amount of time as a purchase.

9. Do you handle title insurance outside the state of New Jersey?

Yes, Triax Title Services, LLC, has a solid relationship with its underwriters and enjoys the benefit of having a national presence for both commercial and residential Transactions.

10. Is there anything else I need to know?

Yes, by providing attention to every detail, Triax Title Services, LLC, agent for Fidelity National Title Insurance Company and Old Republic National Title Insurance Company, is pleased to offer full Title Insurance and Settlement Services for all real estate transactions, be they residential or commercial.

Just call: (732) 280-5050 or CLICK HERE to contact us.