Why do I need title insurance?
For most Americans, their home is the single largest financial investment they ever make. And while ownership of a home may seem straightforward, the rights to enjoy a property aren’t always as clear. There are literally dozens of ways in which a title to – and ownership of – a property can be jeopardized. Your house may be new but the dirt beneath it is very old.
Title Insurance Overview
The objective of title insurance remains the same as it has always been – to help the parties in real estate transactions determine their rights and interests and assure the land transfer is expeditious and secure. Protecting the parties involved in real estate transactions is the reason the product of title insurance was developed. In this country, matters affecting ownership and other real estate interests are entered in public records. Before a transaction is completed, a title search of the records can be made in an effort to locate potential problems so that they can be rectified and the sale can proceed.
Title Insurance Minimizes Risks & Claims
Since its inception, title insurance has offered protection that is significantly different from other lines of insurance. Typically, other types assume a particular risk and provide financial indemnity in the event the risk occurs. On the other hand, title insurance emphasizes loss prevention by eliminating risks caused by title problems arising from past events. Besides minimizing the possibility that title hazards will threaten ownership or use of property, the concentration on risk elimination greatly reduces the number of claims to be defended against or satisfied by the insurer. With other types of insurance, an annual premium is usually paid. For title insurance, it is a one-time fee paid at closing.
Types of Title Insurance
There are two types of title insurance: Lender’s title insurance, also called a Loan Policy, and Owner’s title insurance. When issuing a loan, most lenders require a Loan Policy, based on the dollar amount of the loan. It protects the lender’s interests in the property should a problem with the title arise.
Title Searches
The first step in the process involves a search of the public records to determine who owns the property, and what interests may already exist in that property. A title search entails examining the records in the offices of recorders or registers of deeds, clerk of courts and other municipal and county officials, or similar records housed in a title company’s “title plant”. These records cover all recorded documents, judgments, liens, taxes, street easements, sewer assessments, special taxes and levies, and other matters.
What exactly does title insurance cover?
Title insurance protects against problems affecting the title to your home, possibly your most valuable asset. There are two types of title insurance – a lender’s policy and an owner’s policy. When you obtain a loan (and a refinance is a new loan), then lender will require that you purchase a lender’s title policy to protect their investment in the property. Owner’s title insurance is optional, but it protects the homeowner by paying claims and legal fees should a problem arise.
Having a serious problem with my title seems rather remote. Is insurance really necessary?
Title companies find problems in more than 25% of their title searches. Problems include items such as liens from unpaid child support, alimony, taxes or from unpaid subcontractors. Other things that can cloud title that are not so easy to detect include forged signatures in the chain of title, recording errors in the public record, undisclosed easements and title claims by missing heirs and/or ex-spouses. For this reason, title insurance is highly recommended.
Does a lender’s title insurance policy protect the homeowner?
No. A lender’s policy protects the lender’s interest in the property should a problem arise. It does not cover the owner’s equity in the property and will not pay the homeowner’s legal expenses if there is a problem. Only an owner’s title insurance policy will protect the homeowner.
Are all title insurance rates the same?
Rates for title insurance are filed rates with the State of Ohio Department of Insurance. Exam and closing services vary from company to company. And there may be variations depending on the lender you work with. Ask for a recommendation for a title company from your real estate agent, lender, friends and family to find one that others have been satisfied with. If you are refinancing and purchased title insurance within the last several years, ask if there are special discount rates available.
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Hypnosis for Pain
Hypnosis has slowly gained acceptance for treatment of a number of conditions, particularly for various types of pain according to the Mayo Clinic. It has been shown to help relieve pain associated with childbirth, burn wounds, surgical operations, and dental procedures. For people who can't take pain medications, it can be especially helpful. Other kinds of pain, such as chronic pain associated with tension headaches, cancer, irritable bowel syndrome, jaw joints, and nerves may be improved using hypnosis. Chronic pain, however, may require repeated sessions to be effective. It's not clear exactly how hypnosis works. It is an altered state of consciousness, or trance, in which the patient has focused attention and has a heightened ability to respond to helpful suggestions. Hypnotic states also occur naturally, such as when you are engrossed in a book, daydreaming, or performing a monotonous activity. To build a hypnotic state, a psychologist or psychiatrist explains the process and guides you to relax, let go of any fear, and focus on instructions. |
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Boost Your Brainpower with Exercise A recent and rapidly growing movement in science is showing that exercise can make people smarter. A landmark study published by Columbia University and the Salk Institute shows that subjects had grown new brain cells after a three-month program of aerobic exercise. For decades, it was thought that such a thing was impossible. Every time a muscle contracts, it sends out the IGF-1 protein that travels through the bloodstream, across the blood-brain barrier, and into the brain itself. In turn, IGF-1 issues an order to increase production of brain-derived neurotrophic factor (BDNF), which fuels almost all the activities that lead to higher thought. With regular exercise, the body builds up levels of BDNF, and the brain's nerve cells start to branch out, join together, and communicate with each other in new ways. This is the process that underlies learning. Brains with more BDNF have a greater capacity for knowledge. And they could stave off Alzheimer's disease and ADHD. At any age, an active body is crucial for building a strong mind. |
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How to Prevent Burnout and Manage Stress A recent poll by CareerBuilder.com shows that more than half of workers interviewed said they are under a great deal of stress. To prevent burnout, try to make changes in the way ou cope with stress at home and at work. Daniel Goleman, author of Social Intelligence (Bantam), notes that constant interaction with people who are anxious, angry, stressed, or traumatized activates your stress center. So, make time for yourself so you are not always just giving your time to others. Learn to calm yourself. Goleman suggests breathing deeply, praying, or meditating. Practice in the morning. Decide what you like and don't like about your work. Think of strategies to resolve problem areas. You might form an alliance with someone to address shared concerns. Don't try for perfection. Sometimes dishes don't get washed and email has to wait for your reply. Don't be available 24/7. Take care of your health. Eat well and exercise. As you see the benefits, you'll do more to keep healthy. Get support. Find someone at work you can talk to. We all need the support of friends, Goleman says. Decide if you'll do it. If your spouse or a friend wants you to do something and you really don't want to do it, don't. |
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Safety First! Dangerous Lawn Mowers: Push mowers and self-propelled mowers cause almost three times as many injuries as riding mowers. Children should be kept in the house while a power mower is being used. Water Safety Tips * Never leave small kids alone near water, including near the beach, pool, or bathtub. * Beware of neighborhood pools. Know that kids will be supervised when invited over to swim. * Teach kids the three swimming rules: Always swim with a buddy. Never dive head first into unknown bodies of water; Don't jump or push on others. Adults should have a cellphone and a first aid kit available during family outings. Warn older children not to take chances or underestimate the water depth. Driver Error and Wrecks Distracted drivers were a large contributing factor in driver errors. These distractions can cause an accident: * Talking: Being involved in a conversation, either with a passenger or on a phone. * Rubbernecking: Watching accident scenes, road construction, animals, or people outside the vehicle. * Tending to others: Pets, bugs, spilled drinks, reaching down to pick up things. Tuning radios. *Minding yourself: Eating, drinking, putting on makeup, or checking the vanity mirror. |
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Positive Thinking I believe one of the greatest satisfactions of living life to the fullest is doing the best you can with whatever you have. Doing anything less than your best has a way of eroding the psyche. We are creatures of enterprise. Life seems to say to us, “Here are the raw materials: your creativity, and 24 hours to use it. What splendid things can you produce?” Jom Rohn |
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Recipe Corner This is a fantastic recipe that captures the summer in one big bite! All the ingredients are abundant this time of year. Enjoy!! Tabouli or Taboolie Serves about 6 1 C. warm water Soak the bulgur in the water for about an hour. Add the remaining ingredients and toss lightly. Refrigerate and cool before serving. The tomatoes may be omitted and the variuos amounts may be increased or decreased to taste. |
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Play SuDoku! Fill in the missing numbers so every row, column and quadrant contains the number 1 through 9. See below for an example of how to play this fun game!
Example:
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Answers to this fun game will be posted in the next issue of Title Tabloid! |
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Money Talk
There are many ways to finance a home
Finance all of it, part of it, or none of it. Whichever you choose, you've got plenty of company.
The National Association of Realtors reports these trends:
Age: Buyers age 45 to 65 and older are less likely to finance a home purchase. They are often repeat buyers or are downsizing.
Average buyer: The typical buyer tends to finance 91 percent of their home purchase.
First-time buyers: They are usually younger and don't have cash from a previous home. Last year, the average first-time buyer financed 98 percent of their home. Nationwide, 40 percent financed the entire amount.
Sources of downpayment: Savings are the chief source of downpayment funds for home buyers in general and for 73 percent of first-time buyers. About 40 percent of repeat buyers drew on savings for a downpayment, while 60 percent of repeat buyers used the proceeds from the sale of a primary residence for a downpayment.
After savings, the second most popular sources of funds for first-time buyers was a gift from relatives or friends.
Types of mortgages: Loosely defined, mortgages are either fixed-rate or adjustable. Within these categories, however, specific terms vary widely.
About 71 percent of recent home buyers reported that they had a fixed-rate loan; 8 percent had an adjustable rate loan. First-time buyers were more likely than repeat buyers to start with a fixed rate loan that eventually had rates adjusted.
Some buyers start with an adjustable rate and then convert to a fixed-rate mortgage. Others begin with a fixed-rate mortgage that then adjusts the rate periodically.
Surprisingly, 3 percent of home buyers don't know what type of mortgage they have.
Interviewed by Fortune, real estate developer Donald Trump was asked if he would go into real estate if he was just starting his career today.
He answered, "Yes. I would go into real estate. I love it. When I first started out in Manhattan, everyone was saying what a terrible market it was. If I'd listened to them, I would not be where I am today. There are always opportunities."Credit cards: Are you 'average?'
The Experian National Score Index shows that people in New Hampshire and New Jersey have more credit cards than those in any other U.S. state with 20 percent of consumers holding 10 cards or more.
In the entire U.S., 51 percent of consumers have at least two credit cards and 14 percent have at least 10 credit cards. Of all these, 14 percent use at least half of their available credit. The average U.S. consumer has four credit cards.
We would like to thank all of our customers for their continued support. We value and appreciate the trust you place in us each and every day.
Please remember to pass our name along to any friends, family or clients that are buying, selling or refinancing their real estate. The finest compliment we could ever receive is that of a referral from our friends and customers.
Thank you,
Land Title Group III LLC
For service or if you would like to subscribe to this newsletter, please contact
Corinne R. Farris at crf.ltg3@landtitle.com