Frequently asked questions.
What do I need to bring to closing?
Official Photo Identification: i.e. Driver's License, Passport, State Issued Identification Card. Photo ID must be brought to the closing by all parties.
If you are required to bring funds to the closing, payment must be in these forms:
Less than $1,000 can be a personal check
$1,000--$9,999 must be a cashier's check
Anything over $10,000 must be wired
What can I expect from purchasing title insurance?
For a one-time premium, an owner's title insurance policy remains in effect for as long as the insured, or the insured's heirs, own the property. Title insurance will pay for defending against any lawsuit attacking the title as insured. It will clear up title issues or pay the insured's losses up to the policy limits.
How are property taxes handled at the closing?
Tax Proration: With real estate taxes being a year behind in their collection, purchase transactions require the SELLER to provide a proration to the BUYER towards future tax bills that will come due after closing, that will be the buyer's obligation to pay, but represent a period the seller owned the real estate. There are two basic proration types used in residential real estate transactions. These two types of proration methods are referred to as LONG and SHORT proration. The type of proration used in a transaction is predicted by the purchase contract provision regarding real estate taxes.
If the closing takes place in the first 6 months of the year:
SHORT: The seller pays the February tax bill and pays the buyer a proration from January 1 of that year to the date of closing. Buyer is responsible for the July tax bill and all future bills.
LONG: The seller pays the February tax bill and pays the buyer a proration from July 1 of the previous year to the date of closing. Buyer is responsible for the July tax bill and all future bills.
If the closing takes place in the second 6 months of the year:
SHORT: The seller pays the February tax bill and pays the July tax bill and pays the buyer a proration from July 1 of that year to the date of closing. Buyer is responsible for the tax bills that will come due the next year and all future bills.
LONG: The seller pays the February tax bill and pays the July tax bill and pays the buyer a proration from January 1 of that year to the date of closing. Buyer is responsible for the tax bills that will come due the next year and all future bills.
How can there be a title defect if the title has been searched and a loan policy has been issued?
You pay for title insurance ONLY once, when you buy the policy, unless you decide later to add more coverage. Coverage lasts as long as you or your heirs own the land, and may last forever for any title warranties made when you sell the property.
What does the title commitment do?
The title commitment lists any potential issues, exclusions, or exceptions. It alerts the buyer to issues that exist and could cause problems in the future. It does not guarantee that there are no current issues or that none will arise in the future. You should discuss how to clear potential issues with the title agent. You may wish to review potential issues with a lawyer.
*Read the title commitment carefully as these items can become exclusions or exceptions under Schedule B of your policy. Exceptions and exclusions are items not covered by the policy.
Why does my owner’s policy cost more than the loan policy?
When you buy an owner’s policy and a loan policy at the same time, the loan policy is issued at a discounted price of $100.00. If you decide not to purchase an owner’s policy, you will pay full price for the loan policy.
What kind of defect(s) does title insurance protect you from?
It protects you against loss due to title defects, liens, or other similar matters. Title insurance protects you from claims of ownership by other parties. It protects you against losses from problems that arose before you bought the property. The title company will defend you in court if there is as claim against your property, and will pay for covered losses.
What is the cost of Owner’s Title Insurance compared to Homeowner’s Title Insurance?
-Title insurance premiums are regulated by Ohio's Department of Insurance. Premiums are based upon the purchase price of the property and the type of policy purchased.
How is title insurance paid?
Title insurance is paid for when the property is purchased. It is a one-time payment.
What is title insurance?
Title insurance insures against financial loss caused by defects in title to real estate. Title insurance companies defend against lawsuits attacking the title, or in the case of a covered loss, reimburse the insured up to the policy limit.
How long does the insurance policy last?
Loan Policy: Lasts until the loan is paid off.
Owners & Homeowners: Lasts as long as you or your heirs own the land. Homeowners Policies can only be issued to Buyer(s) who intend to occupy the residence as their primary. You can always upgrade to a Homeowners policy if you currently have an Owners policy as well.
Policy language has changed over time, so read the “continuation of coverage provisions” in your policy carefully to determine coverage terms.
Is it like homeowner’s insurance?
No, title insurance is different from other types of insurance. It does not insure against fire, flood, theft, or any other type of property damage or loss. It protects against losses from ownership problems that arose before you bought the property but were not known at the time you bought the property. It does not guarantee you will be able to sell your property or borrow money on it.
What’s the difference between a title commitment and a title policy?
The title commitment comes before closing; the title policy is issued after closing. The commitment says that a title company is willing to issue title insurance under certain conditions and if the seller fixes certain problems. The policy provides coverage for the property.
What type of policies are there?
There are 3 different types of policies: Owner’s Policy, Homeowner’s Policy (expanded) and Loan Policy.
Owner’s Policy: The owners policy protects you against losses from ownership problems that arose before you bought the property, but that were not known at the time you bought the property.
Homeowner’s Policy: The homeowners policy protects you for all the things the Owners Policy does and so much more. For example, it will cover any losses regarding Seller Fraud and also increases in value up to 150%.
Loan Policy: The loan policy is issued to the mortgage lender. It protects the lenders interest in the property until the borrower pays off the mortgage.