Common Questions

What is a title?
A title is the foundation of property ownership. It is the owner's right to possess and use the property.

What is title insurance?
Title insurance is a contract to protect you as the owner against losses arising through defects in the title to real estate owned. If the title is insurable, the company guarantees the owner against loss due to any defect in title or expenses in legal defense of the title pursuant to the terms of the policy.

Why do I need title insurance?
Title insurance protects you against a host of legal issues that may crop up when you buy or sell a property. It is your safety net if something is in error with the property you wish to sell or buy such and mistakes made to the original deed or in some cases, misinterpretations and fraud.
A lender goes to great lengths to minimize the risk of lending you the money you need to buy a home.  Your credit is checked as an indication of your ability to pay back your loan. Then, your lender goes a step further. He or she makes sure that the quality of the title to the property you are about to buy and which you will pledge as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance.

What is a title search?
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 purpose of the search is to verify the seller's right to transfer ownership, and to discover any claims, defects and other rights or burdens on the property.

Your title insurance protection is a permanent assurance that your ownership and use will be defended promptly against claims at no cost to you, whether the claim is valid or not.

Why is transferring the title to real estate different from transferring other titles?
Because land is permanent and can have many owners over the years, various rights in land (such as mineral, air or utility rights) may have been acquired by others by the time you come into possession of it, even if the land has never before been built upon. So in order to transfer a clear title to a piece of land, it is first necessary to determine whether any rights are outstanding.

How long does my coverage last?
For as long as you or your heirs retain an interest in the property and, in some cases, even beyond.

How does title insurance protect my investment if a claim should arise?
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense - and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.

What danger of loss can I face?
If a lender has title insurance protection and you don't, what possible danger of loss can you face?
As an example, let's say you've bought a home for $150,000. You've made a $30,000 down payment, and your lender holds an $120,000 mortgage lien or beneficial interest. Your lender has title insurance coverage protecting his interest up to $120,000.

I sold my house myself. Can Bennett Title Agency help me?
We would be happy to. Bennett Title can help FSBO (For Sale By Owner) customers in anyway that we can. Please feel free to contact us and we’ll help you through this process.

What if some matter arises affecting the past ownership of the property?
The title insurance company would only defend and protect the interest of the lender. You would have to assume the financial burden of your own legal defense. If your defense is not successful, the result could be a total loss of title. 

What does title insurance do?
Title insurance protects you from the following problems that may present themselves when you sell or purchase a property. These problems can arise after you've purchased your property and can jeopardize your right to ownership.

False impersonation of the true owner of the property
Misinterpretations of wills
Forged deeds, releases or wills
Undisclosed or missing heirs
Deeds by persons of unsound mind
Deeds by minors
Deeds by persons supposedly single, but in fact married
Liens for unpaid estate, inheritance, gift taxes
Fraud
Instruments executed under invalid or expired power of attorney
Mistakes in recording legal documents

Does Bennett Title retain my abstract or records?
Yes. If you e-mail or fax your name and telephone number together with the legal description, file number or address, of your property, we will contact you and make the proper arrangements.

How much does it cost and can I get a quote for title insurance, closing costs, etc.?
The cost is directly related to the value of the property. The higher the value, the more coverage is needed. The premium is small compared to the total purchase price. The premium is paid only once and remains in force for as long as the property is owned by the insured and continues to protect the insured on warranties after it is sold. Please contact us and we’ll more then happy to give you a writing quotation that fits your needs.