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| Below
are answers to some commonly asked questions regarding title insurance
which we hope will assist you in determining your title insurance
needs. If you have any questions that are not answered below, please
contact us. |
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| What
is title insurance? |
| Title
insurance protects against loss or damage resulting from defects that
affect the title to your home or place of business. |
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| Why
is title insurance important? |
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Title insurance protects the investment
you've made in your home or place of business. When you buy property,
the previous owner conveys title to you to evidence your full legal
ownership. Occasionally, a hidden defect in the title or a mistake
in a prior deed, will or mortgage may give someone else a legal
claim against your property. If a claim is made against your property,
title insurance can save you time and money by:
- Providing a corporate guarantee
against insured defects;
- Paying all legal expenses to
eliminate any title defects;
- Paying any claim arising from
errors in title examination and recording; and
- Paying any loss arising from
hidden defects in title and defects not of record.
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 or not the claim
is valid. |
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| What
is a title defect? |
| A
title defect is one of any number of things that could jeopardize
your interest. It could be an unsatisfied mortgage, lien, judgment
or other unrecorded claim against the property. It could arise through
easements, use restrictions or other existing covenants, or it could
be a hidden risk. |
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| What
types of hidden risks does title insurance protect against? |
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Title insurance generally protects
you against four kinds of hidden risks:
- Errors
in the public records such as incorrect information
in deeds and mortgages regarding names, signatures and legal descriptions;
- Judgments, liens and
mortgages or any other claims against
the property or the seller which become the new owner's responsibility
after closing, such as unpaid taxes, assessments and other debts
to creditors;
- Claims to ownership
by the spouse of a former owner or by the "missing heir"
of a deceased owner who did not receive his share of the estate;
and
- Invalid deeds
or other transfers by sellers who did not actually own the property
or by previous owners who were minors or not mentally competent.
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| What
risks are not protected by title insurance? |
| Both
the standard owner's policy and the standard lender's policy are based
on an examination of public records of the recording district in which
the land is located. Neither policy insures against matters that could
be disclosed by actual inspection or survey of the property. These
policies do not insure against certain matters not shown by the public
records such as unrecorded easements, liens or money obligations,
unrecorded utility rights of way, public or private roads, community
driveways and other types of encumbrances, or against the rights or
claims of persons in possession of the property which are not shown
by the public records. |
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| Can
protection be obtained against matters not of record? |
| Upon
request, the title insurance company may agree to cover matters that
are disclosed by a physical inspection or a survey of the property,
subject to any exceptions that the inspection determines to be proper.
Due to the additional risk involved, a higher premium may be charged
for this type of coverage. This type of coverage is called "extended
coverage." |
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| Who
does title insurance protect? |
| There
are two basic types of title insurance policies - one for the mortgage
lender and one for the real estate owner. If a mortgage is to be placed
on your new home or business, the lender will probably require you
to purchase title insurance to protect its position as a holder of
a mortgage loan, but this lender's title insurance policy doesn't
protect the real estate owner. You need to purchase an owner's title
insurance policy to protect your investment. |
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| How
much does title insurance cost? |
| You
pay a one-time premium for coverage that lasts as long as you or your
heirs own your property, or as long as you may be liable for any title
warranties you make. Owners title insurance is one of the least expensive
forms of insurance. In many cases the owner's title insurance policy
can be purchased at a reduced rate when a lender's policy is also
purchased. Our Rate
Calculator can assist in determining the cost of Title Insurance. |
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| When
is the title insurance policy issued? |
| The
owner's title insurance policy usually is issued after the deed to
the buyer is delivered and recorded. The lender's title insurance
policy is usually issued after the mortgage or deed of trust has been
properly executed and recorded. |
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| What
is a title search? |
| A
title search is a detailed examination of the public records concerning
the property, including deeds, civil and probate court records, judgment
indexes and tax records. The purpose of a title search is to determine
the seller's right to transfer ownership and to discover any claims,
errors, assessments, mortgages or other burdens or restrictions on
the property. |
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| What
happens if a claim is made against my title? |
| If
a claim is made against your title, you should notify the title insurance
company immediately, in writing, and include copies of all related
letters and documents. The title insurance company will either pay
the claim against your title, negotiate with the other party to settle
the claim or defend a court case related to the title. The company
will pay all legal costs incurred in defending your title. |
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| What
should I look for in selecting a title insurance company? |
| You
should select a company that has a sound reputation for paying
claims, experience in all phases of title insurance, and efficient
and dependable service to policy holders. Illinois
Real Estate Title Center, LLC and its underwriter, Investors
Title Insurance Company, have an outstanding record in all
of these areas, and can also offer you many other superior services. |
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