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How does Title Insurance differ from other types of insurance?
Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults.
Another difference with title insurance is that the insured pays a one-time premium instead of ongoing premiums as with other types of insurance.
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Why do I need Title Insurance?
Owning real estate is one of the most precious values of freedom. When you buy a home, you want to be sure the property is properly conveyed and free from unexpected adverse interests. Once title insurance is purchased, it remains in effect for as long as you own your home. Title insurance adds security and peace of mind to home ownership.
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How long does my coverage last?
Once purchased, title insurance remains in effect for as long as you own your property.
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How do I obtain Title Insurance?
Let the title company, attorney, or agent handling the closing of your property know that you want to purchase an Owner's Title Insurance Policy. When choosing a title insurer, you should look for a company with the experience, as well as the financial strengthto protect you.
The Insurance Commissioner approves the premiums for title insurance policies. It is customary in Washington State for the seller to pay for the buyer/purchaser standard coverage policy. The premium is only paid once. The cost depends upon the purchase price of the property, and your policy amount must be equal to the purchase price.
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What is an Owner's Policy and why do I need one?
An Owner's Policy protects you, the purchaser, against a loss that may occur from a fault in your ownership or interest you have in the property. You should protect the equity in your new home with a title policy. It offers:
- Protection from financial loss due to covered claims that may be asserted against the title to you home up to the face amount of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home.
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What are some hidden risks protected under a Stewart Title Insurance Policy?
The following matters are examples of why you need a Stewart Title Insurance Policy. Remember that the best title examination or search cannot protect your equity and home from matters not appearing in the public records. However, Stewart Title Policy* can protect you from:
- Documents executed under false, revoked or expired powers of attorney
- False impersonation of the true landowner
- Undisclosed Heirs
- Improperly recorded legal documents
- Prescriptive rights in another - not appearing of record and not disclosed by survey
- Failure to include necessary parties to certain judicial proceedings
- Defective acknowledgments due to improper or expired notarization
- Corporate franchise taxes as liens on corporate real estate assets
- Gaps in the chain of title
- Mistakes and omissions resulting in improper abstracting
- Forged deeds, mortgages, wills, releases of mortgages and other instruments
- Deeds by minors
- Deeds which appear absolute, but, but which are held to be equitable mortgages
- Conveyances by an heir, devisee or survivor of a joint estate who attempts to attain title be ill-gotten means
- Inadequate legal descriptions
- Conveyance by undisclosed divorced spouses
- Duress in execution of wills, deeds and instruments conveying or establishing title
- Issues involving delivery of conveyance of instruments
- Deeds and wills by persons lacking legal capacity
- State inheritance and gift tax liens
- Errors in tax records
- Demolition and substandard building liens
- Administration of estates and probate of wills of missing persons who are presumed deceased
- Issues of rightful possession of land
- Issues concerning the rightful conveyance by corporate entities
- Deeds and mortgages by foreigners who may lack legal capacity to hold title
- Legal capacity of foreign personal representatives and trustees
- Issues involving improper marital status
- Improper modification of documents
- Rights of divorced parties
- Conveyances in violation of public policy
- Misinterpretation of wills and ancillary instruments
- Deeds by persons falsely representing their marital status
- Claims by creditors of descendent against property improperly conveyed by heirs and devisees
- Issues concerning unlawful takings by eminent domain or condemnation
- Special tax assessments
- Real estate homestead exceptions
- Forfeitures of real property due to criminal acts
- Issues concerning adoption of children
- Conveyances and proceedings effecting rights of military personnel protected by the Soldiers' and Sailors' Civil Relief Act
- Issues concerning interests noted in financial statements filed under Uniform Commercial Code
- Interests arising by deeds of fictitious parties
- Adverse possession
- Lack of jurisdiction or competency of persons in judicial proceedings
- Community property issues
- Utility easements
- False affidavits of death or heirship
- Interstate estates
- Probate matters
- Federal estate and gift tax liens
*Subject to certain limitations set forth in the policy
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What is an Endorsement and why do I have to pay for it?
An endorsement, which is usually required by the lender, is further coverage for special requirements in addition to our standard policy's coverage.
What Endorsements should be considered?
- Form 126.1 (Comprehensive Homeowner's Protective Endorsement):Fee: No charge. Insures against loss if the residential structure encroaches onto the adjacent property or onto any subsurface easements.
- Form 100 (Comprehensive Lender's Endorsement):Comprehensive coverage for the lender insuring against violation of covenants, encroachments of the main dwelling and association liens affecting priority of the loan.
- Form 100.30(Mineral):Coverage insuring against damage to existing improvements resulting from the exercise of the right to remove minerals from the surface.
- Form 103.1(Easement):Coverage insuring against loss or damage as the result of use or maintenance of the easement.
- Form(Condominium):Coverage insuring the creation of the condominium estates is in accordance with the laws. That the covenants, conditions and restrictions are not violated, that a homeowner's assessment lien is subordinate to the lender's Deed of Trust, and also protection against common area encroachment.
- Form(P.U.D.): Coverage insuring against loss or damage due to violation of restrictive covenants, forfeiture or revision provisions of restrictive covenants, assessments gaining priority over and insured mortgage, compelled removal of improvements due to encroachments.
- Form 8.1 (Environmental Protection): Coverage insuring that no environmental lien has been filed either in the Clerk and Recorder's records or filed in the U.S. District Court.
- Mechanic Lien Protection
- Survey Protection
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What should I know about property taxes?
Property taxes can be a confusing topic. Moreover, property taxes are regulated at the county level and, therefore, different in each county.
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How is title held or going to be held?
Remember, if you are selling your property and you hold the real estate in an entity name, there may be additional requirements that must be complied with before closing. Similarly, if you are acquiring real estate and wish to hold title in an entity name, there also may be additional requirements that must be complied with before closing. Please contact our title department with any questions at (206) 770-8700.
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What is Power of Attorney?
A "power of attorney" is a written instrument by which a person(the "principal") appoints another agent (the "attorney in fact") and confers upon the agent the power to perform certain specified acts on behalf of the principal.
What is Power of Attorney:
- Creates an agency relationship, with the giver of the power of attorney remaining the legal owner of any property involved
- Must be approved by Stewart Title Guaranty Company
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Can I write a personal check at closing?
All funds at closing must be in the form of wire transfer. Washington is a "good fund" state, therefore as an escrow agent, Stewart Title can only accept "good funds" when closing a transaction. "Good funds" means the check is drawn on the bank's account, not on an individual's account.
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Why should I select Stewart Title as my Title Insurer?
Stewart Title has more then 100 years experience in the land title industry. We have earned the confidence of our customers through an unmatched record of increases in both reserves and surplus for more than 20 consecutive years. We have 5000-plus issuing offices worldwide.
Stewart Title is rated ?A Double Prime? in claims-paying ability, the highest rating among all 100 title insurers, as rated by Demotech, Inc., a financial agency approved by the Federal National Mortgage Association. Stewart Title associates will help you feel comfortable and at ease during this momentous and exciting time of your life!
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