|
Frequently
Asked Questions
New
Jersey FYI
Title insurance fees are filed and regulated in the State of New
Jersey. Therefore, all title agencies charge the same fees from
agency to agency. When getting a quote from a title agency, besides
the tite insurance PREMIUM charge for the POLICY, there are additional
charges such as searches, endorsements, filing and recording fees.
Make sure to ask the title agency you are requesting a quote from
to include ALL anticipated charges in their quote.
Click
here to return to the top of the page
Why
Do I Need Title Insurance?
A real estate purchase is usually one of the best investments you
can make. A home is probably the largest single purchase you will
make.
You
protect your property against fire and other casuality damage with
homeowner's hazard insurance, but what about protecting your title
- your right of ownership?
Title
problems are defects that occur before the date of the policy and
remain undisclosed until sometime later. Even the most thorough
and accurate search of the public records cannot reveal these "hidden"
hazards which could delay the sale of your property, make it unmarketable
or even cause you to lose your property.
Title
insurance covers defects in the title prior to when you purchased
your property.
Click
here to return to the top of the page
Length
of Policy
How long is my title policy good for?
The Owner Policy is valid for the time your policy was issued until
you choose to sell (transfer deed) your property - be that one year
or twenty years of ownership.
The Lender Policy is valid through the life of the loan. A Lender's
Policy may be passed to another lender/mortgagee through an assigment
of the loan, however, is not assignable should you refinance the
property. A new Lender Policy would be issued at that time.
An
Owner (or Fee) Policy is non-transferrable.
The new owner will be required by his/her lender to purchase a new
policy and at that time, the new owner may elect to insure the property
with a new policy issued in her/his name.
Click
here to return to the top of the page
Owner
Policy
Why do I need another policy if I provided one for the loan?
You are not insured by your Lender's Policy. A one-time premium
protects your property from actual loss resulting from any risk
covered by your policy, up to the amount of the policy.
Your
Fee or Owner Policy may also provide for legal defense costs should
a claim arise, unless specifically excluded from your policy.
Typically,
the Lender and the Owner Policies are issued at the same time to
reduce your title policy costs.
An
Owner's Policy may also be issued on a property where no lender
is involved as protection for the new owner of the property against
possible claims.
Also,
a current owner may upgrade the amount of a title policy on a property
should it increase significantly in value due to improvements (such
as building on a vacant lot or an addition to an existing structure).
Click
here to return to the top of the page
Lender
Policy
What is a Lender's policy?
Your lender knows that title problems can occur more often than
you think. Most lenders require title insurance to protect their
interests in the property.
You
are not insured by the Lender Policy.
Click
here to return to the top of the page
Closing
Fees
What are typical charges for title work?
Actual costs vary from state to state however, you can expect any
of the following:
- One-time
premium fee for a Lender's Policy for Life of Loan
- One-time
premium fee for an Owner or Fee Policy for as long as you own
the property
- Title
Search (comprehensive search of all public records)
- Lender
Required Endorsements and Closing Service Protection Letter
- Closing
Settlement Agent Fee
- Non-Title
Closing Fees
- County
Recording Fees to Record New Deed and Mortgage
- Overnight/Express
Mailing
- Lender
Required Appraisal and/or Survey
- Legal
Representation/Attorney Fees
Click
here to return to the top of the page
Defects
in Title
What are the problems that could affect my title?
The following are some of the types of title defect that would adversely
(negatively) affect your property:
- Forged
deeds, mortgages, satisfaction or release of mortgages and other
instruments
- False
impersonation of the true owner of the land or his consort
- Instruments
executed under fabricated or expired power of attorney (death
or insanity of principal)
- Deed
apparently valid but actually delivered after the death of the
- Grantor
or Grantee, or without the consent of Grantor
- Deeds
by persons of an unsound mind
- Deeds
by minors
- Deeds
not properly delivered
- Deeds
which appear to convey title but are really mortgages
- Outstanding
prescriptive rights not of record and not disclosed by survey
- Descriptions
apparently but not actually adequate
- Duress
in execution of instruments
- Failure
to include necessary parties in judicial proceedings
- Federal
estate and gift tax liens
- State
inheritance and gift tax liens
- Errors
in tax records (For example, listing payment against wrong property.)
- Ineffective
waiver of tax liens by tax or other govern authorities repudiated
later by successors
- Corporation
franchise taxes as lien on all corporate assets, notice of which
does not have to be recorded in the local recording office
- Erroneous
reports furnished by tax officials, but not binding on municipality
- Tax
homestead exemptions set aside as fraudulently claimed
- Lack
of capacity of foreign personal representatives and trustees to
act
- Deeds
from non-existent entities
- Interests
arising by deeds to fictitious characters to conceal illegal activities
on the premises
- Deeds
in lieu of foreclosure set aside as being given under duress
- Ulta
vires deed given under falsified corporate resolution
- Conveyances
and proceedings affecting rights of servicemen protected by Soldiers
and Sailors Civil Relief Act
- Federal
condemnation without filing of notice (Federal law does not require
filing of notice of taking in local recording office.)
- Deed
from record owner of land where he has sold property to another
purchaser on unrecorded land contract and the purchaser has taken
possession of premises
- Defective
acknowledgment due to lack of authority of notary. (Acknowledgment
taken before commission or after the expiation of commission.)
- Deed
of property recited to be separate property of Grantor which is
in fact community or joint property
- Lack
of a legal right of access to and from the property
- Matters
affecting title whose origins existed before the period of title
examination and which have not prescribed by operation of law
- Deeds
by persons apparently single but actually married
- Deed
from bigamous couple-prior existing marriage in another jurisdiction
- Undisclosed
divorce of spouse who conveys as sole heir of deceased consort
- Undisclosed
heirs
- Misinterpretation
of wills, deeds and other instruments
- Birth
or adoption of children after date of will
- Children
living at date of will but not mentioned therein
- Discovery
of will of apparent intestate
- Discovery
of later will after probate of first will
- Administration
of estates and probate of wills of persons absent but not deceased
- Conveyance
by heir, devisee or survivor of a joint estate who murdered the
decedent
- Deed
from trustees of purported business trust which is in fact a partnership
or joint stock association
- Deed
of executor under non-intervention will when order of solvency
has been fraudulently procured or entered
- Deed
to or from corporations before incorporation or after surrender
of forfeiture of charter
- Claims
of creditors against property conveyed by heirs or devisees within
prescribed period after owner's death
- Mistakes
in recording legal documents (For example, incorrect indexing,
errors and omissions in transcribing and failure to preserve original
instruments.)
- Record
easement, but erroneous ancient locations of pipe or sewer line
that does not allow route of granted easement
- Special
assessments where they become lien upon passage of resolution
and before recordation or commencement of improvements for which
assessed
- Lack
of jurisdiction of person in judicial proceedings
- And
there are many others...
Click
here to return to the top of the page
Click
here to return to the top of the page
|
