Questions you should ask about title insurance

Title insurance is a must have for home buyers.

Some questions about title insurance

Title insurance protects property buyers and their mortgage lenders against defects or problems with a title.

At Vested Land Services LLC, we are a policy issuing agent for several title insurance companies. In order to issue our policy we search land and court records to make sure there are no undisclosed interests in the property, unpaid taxes, pending legal action, errors, fraud or other problems with the title.

In New Jersey, the title must be insurable, meaning that the seller really does own the property and is free to sell it.

Home buyers typically pay for two title insurance policies at closing: an owner’s policy and a lender’s policy, which protects the lender.

Here are six questions a home buyer should ask about title insurance.

1. Are title insurance prices regulated?

In New Jersey, they are, so there won’t be a difference in premium quotes among companies.  However, some companies charge different fees for searches and third party services.  Quotes are sometimes misleading since certain charges may be left off or understated.

At Vested Land Services LLC, our quotes contain the standard charges for our files, including charges for services required by most lenders.  We're always ready to discuss out quotes.

2. How much coverage do I need?

Owner’s policies are issued in the amount of the purchase price.  They provide coverage against fraud, forgery, undisclosed heirs and spousal claims.  We'll be glad to provide you with a copy of the policy jacket while you shop for your title insurance agent.

3. Who pays for title insurance?

The home buyer or owner is responsible for paying for its policy and the lender's policy.

4. Is the seller pushing a specific title company?

If you pay for the title insurance, you have the right to select the company. 

Be wary if the seller is pushing his title company.  Are problems being buried? A fresh set of eyes could unearth title issues allowing them to be fixed before the closing.

5. Whom do I trust?

Real estate brokers often have a hidden relationship with a title agency.  If you select the real estate broker's recommendation, you may not be properly served.  If you have hired an attorney recommended by the real estate broker, tell her that you won't to select the title agency.

The same goes for referrals by mortgage lenders.

6. How much reassurance do I need?

Banks and insurance companies aren’t supposed to go under, but they sometimes do. If you want to verify that the underwriter issuing the insurance policy is sound, check its financial solvency with ratings companies such as Fitch Ratings, Demotech Inc. or A.M. Best Co.

You can also research the title insurance company and title agent on line.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!

For your real estate purchase or mortgage refinance or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow@vested.com

@vestedland

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