General info relating to our Partners can be found below. Should you have a specific query, then please don’t hesitate to get in touch.
What is Title Insurance?
Title Insurance is perhaps one of the most important factors of the Real Estate Transaction. It acts as protection for all involved in the event that something happens prior to the closing, at the closing table or years after the closing occurs. Title Insurance provides the Owner, Lender and Attorney with piece of mind at the conclusion of the Real Estate transaction.
Very similar to Homeowner’s Insurance, Title Insurance is there to protect if the need arises. The purchase of a home is perhaps one of the biggest investments that can be made in a person’s lifetime so it is very important that Title Insurance always be a part of any real estate transaction to protect that interest.
Title Insurance insures the condition of your title or ownership rights to a certain piece of property. When you purchase your home you are not only purchasing the structure, you are also purchasing the right to occupy and use the space in which your home is constructed. Unlike Homeowner’s Insurance that insures the structure, Title Insurance insures your title to the land. The Title to the land may have certain restrictions or limitations that may prevent you from enjoying your property.
In some cases, those restrictions or limitations may also bring you a financial loss as well. In spite of all the expertise and dedication that go into a title search and examination, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises.
Some examples of hazards include: (a) a forged signature on the deed, which would mean no transfer of ownership; (b) an unknown heir of a previous owner who is claiming ownership of the property; (c) instruments executed under an expired or fabricated power of attorney; and mistakes in public records. These are just some examples to explain the main reasons why an Owner’s Policy of Title Insurance is important to have.
Unlike Homeowner’s Insurance that protects and insures future loss, Title Insurance covers things that already exist in the title. Title Insurance premiums are different than most insurance types in that it is purchased with a onetime fee/premium as opposed to an annual amount or renewal fee. Premiums are set by the North Carolina Department of Insurance and they vary depending on the type of search that is performed and the type of policy that is issued.
How to refer YOUR Title Company to the Closing Attorney
Disclosure Forms/Contract Coversheet:
- We have provided your office with Disclosure Forms.
- Have your Buyer sign the Disclosure Form and include a copy with the contract (on top) with the fax sent to your Attorney’s Office.
- In the State of North Carolina it is the Buyer’s choice as to which Title Company is selected. As long as you have the Buyer sign the Disclosure the Attorney is required to send it to the Title Company chosen by the Buyer. The challenge is being sure they are aware of who the Title Company is and how to get in touch with them.
How to refer Think Title:
- To help us, please complete the attached Survey. If you use more than one Closing Attorney, please complete one for each Attorney. It really helps if you e-mail or call the Attorney to let them know that we will be contacting them.
- We will then make every effort to contact your Closing Attorneys to provide them with information on YOUR Title Company.
- For each closing, let the Closing Attorney know that the Buyer has requested the use of YOUR Title Company by including the Disclosure Form with the Contract and/or by requesting via your fax coversheet.
- If you are requesting your Closing Attorney to use YOUR Title Company, be sure that at Closing you verify on the Settlement Statement who the payee is on Line 1108. If the payee is not YOUR Title Company, you may want to ask them why they are not using YOUR Title Company for the Title Insurance for your client. If they value your referral, they won’t have a problem using YOUR Title Company!
Title Insurance Premiums / Cost
Please Note: Title Insurance premiums are mandated by the NC Department of Insurance; therefore the price of your Policy is the same regardless of the Title Company used. The premiums are determined by the search period and the search type in which the Closing Attorney certifies to on the Preliminary Title Certificate. The minimum premium charge for any type of Policy is $50.00. Before a Policy of Title Insurance can be issued in North Carolina, a title examination must be conducted under the supervision of an independent Attorney licensed to practice law in North Carolina. The Preliminary Title Certificate is completed by the Certifying Attorney’s Office and must be signed by an Approved Certifying Attorney.
Re-Issue Premium and Policy Type: There are Re-Issue Premiums available and our Office will honour and give a Re-Issue on any Prior Policy provided to our Office by the Closing Attorney regardless of the Title Company who issued it. In order to update or Re-Issue, the Closing Attorney’s Office must locate the Prior Title Policy or ask the Owner of the property for a copy. Re-Issues will only be given for Prior Title Policies issued within the last 15 years. Rates will be 50% of the Regular Rate up to the amount of the Prior Title Policy. In this situation, the Closing Attorney performs a title search from the effective date of the Prior Title Policy to present. In some instances the time frame may be 30 years or more and some may be less than 1 year. In this situation, the Title Company uses a Rate Quote Calculator to calculate the premium and apply the Re-Issue.
Simultaneous Issuances: Simultaneous Issuances occur when more than one type of Policy is issued for the same insured property on a single transaction (i.e., Purchase, Refinance with 1st and 2nd Mortgages). The most common example is a Purchase. In this situation there is an Owner’s Policy in the amount of the purchase price and a Lender’s Policy in the amount of the loan amount. Another common example is a Purchase with a 1st and 2nd Mortgage that are closed simultaneously. In this situation, there is an Owner’s Policy in the amount of the purchase price, 1st Mortgage Policy in the amount of the 1st loan amount and a 2nd Mortgage Policy in the amount of the 2nd loan amount. The premium calculation is similar to single Policy issuances except in most cases there is only one charge for all the Policies being issued for the same insured property on a single transaction.