Close

Title Information

What is Title Insurance? Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance for example, but can be just as devastating.

How Does Title Insurance Protect You? Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses. For a one-time premium, an owner’s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.

Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:

  • False impersonation of the true owner of the property

  • Forged deed, releases or wills, Instruments executed under invalid or expired power of attorney;

  • Undisclosed or missing heirs; Mistakes in recording legal documents

  • Misinterpretations of wills Deeds by persons of unsound mind

  • Deeds by minors

  • Deeds by persons supposedly single, but in fact married

  • Fraud

  • Liens for unpaid estate, inheritance, income or gift taxes

Title Process Steps:

  1. Initial Request for Title Insurance: An order for title insurance is opened with a title officer who produces the initial response promptly within 24 to 48 hours. A preliminary report can be issued with the minimum of information; without even identifying the buyer or the terms of the sale. It shows the record title as it presently exists and is only an offer to provide insurance.

  2. On-Site Searching and Examining: Your title officer performs three searches: Property, Name, and Tax searches. From that information, a preliminary report is created.

  3. Technical Review: Once the report is issued the review begins by making a technical analysis of the documents of record. An interpretive view of all recorded matters is made to evaluate their impact on the title to the property. Among the questions the examiner asks are: Would any of the recorded matters prevent the buyer from using the property for its intended purpose? Can antiquated leases be eliminated from the policy per a review of the current leases?

  4. Inspection Analysis: In anticipation of coverage, a site inspection is ordered. From the inspection report, the initial title product is supplemented to show any encroachments or other off-record matters which would ultimately impact the title.

  5. Re-Insurance: The title insurer will insure up to the total sale price or loan amount, and then employs another title insurance company to insure them. The premium paid to the reinsurance title company is deducted from the title fees; it is not an additional charge to the parties. Re-insurance is handled by the Title Department when requested by the proposed insured or is required based upon self-imposed or statutory title insurance limits.

  6. Co-insurance: The proposed insured may only allow the title insurance company to insure up to a certain amount (i.e. not the total sale price or loan amount). The insuring company must employ another title insurance company to insure the remainder of the sale price or loan amount. When there is co-insurance, the customer is charged based upon each company’s filed rates for the portion of the total liability covered by that company. The co-insurance company may be chosen by the customer.

 

Common Ways To Hold Title: Title to real property in Nevada may be held by individuals, either in Sole Ownership or in Co-Ownership. Co-Ownership of real property occurs when title is held by two or more persons. There are several variations as to how title may be held in each type of ownership.

Preliminary Title Report:  A Preliminary Report provides a list of the matters which will be shown as exceptions to coverage in a designated policy or policies of title insurance, if issued currently, covering a particular estate or interest in land. It is designed to provide an interim, or “preliminary” response to an application for title insurance and is intended to facilitate the issuance of the designated policy or policies. It is normally prepared after application (order) for such policy(ies) of title insurance on behalf of the principals to a real property transaction, for the purpose of facilitating requirements relative to closing and policy issuance in form and content approved by those parties.

After a title order has been placed, matters relative to the title policy coverage on the subject property are assembled in a title search package and examined by skilled technicians. This is when the Preliminary Report is prepared and sent to the customer. The report contains relevant information so that the parties to the transaction will become aware of matters which will not be insured against by the title company. This report is issued before the title policy, hence the name Preliminary Report.

What is Title Insurance? Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance for example, but can be just as devastating.

How Does Title Insurance Protect You? Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses. For a one-time premium, an owner’s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.

Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:

  • False impersonation of the true owner of the property

  • Forged deed, releases or wills, Instruments executed under invalid or expired power of attorney;

  • Undisclosed or missing heirs; Mistakes in recording legal documents

  • Misinterpretations of wills Deeds by persons of unsound mind

  • Deeds by minors

  • Deeds by persons supposedly single, but in fact married

  • Fraud

  • Liens for unpaid estate, inheritance, income or gift taxes

Title Process Steps:

  1. Initial Request for Title Insurance: An order for title insurance is opened with a title officer who produces the initial response promptly within 24 to 48 hours. A preliminary report can be issued with the minimum of information; without even identifying the buyer or the terms of the sale. It shows the record title as it presently exists and is only an offer to provide insurance.

  2. On-Site Searching and Examining: Your title officer performs three searches: Property, Name, and Tax searches. From that information, a preliminary report is created.

  3. Technical Review: Once the report is issued the review begins by making a technical analysis of the documents of record. An interpretive view of all recorded matters is made to evaluate their impact on the title to the property. Among the questions the examiner asks are: Would any of the recorded matters prevent the buyer from using the property for its intended purpose? Can antiquated leases be eliminated from the policy per a review of the current leases?

  4. Inspection Analysis: In anticipation of coverage, a site inspection is ordered. From the inspection report, the initial title product is supplemented to show any encroachments or other off-record matters which would ultimately impact the title.

  5. Re-Insurance: The title insurer will insure up to the total sale price or loan amount, and then employs another title insurance company to insure them. The premium paid to the reinsurance title company is deducted from the title fees; it is not an additional charge to the parties. Re-insurance is handled by the Title Department when requested by the proposed insured or is required based upon self-imposed or statutory title insurance limits.

  6. Co-insurance: The proposed insured may only allow the title insurance company to insure up to a certain amount (i.e. not the total sale price or loan amount). The insuring company must employ another title insurance company to insure the remainder of the sale price or loan amount. When there is co-insurance, the customer is charged based upon each company’s filed rates for the portion of the total liability covered by that company. The co-insurance company may be chosen by the customer.

 

Common Ways To Hold Title: Title to real property in Nevada may be held by individuals, either in Sole Ownership or in Co-Ownership. Co-Ownership of real property occurs when title is held by two or more persons. There are several variations as to how title may be held in each type of ownership.

Preliminary Title Report:  A Preliminary Report provides a list of the matters which will be shown as exceptions to coverage in a designated policy or policies of title insurance, if issued currently, covering a particular estate or interest in land. It is designed to provide an interim, or “preliminary” response to an application for title insurance and is intended to facilitate the issuance of the designated policy or policies. It is normally prepared after application (order) for such policy(ies) of title insurance on behalf of the principals to a real property transaction, for the purpose of facilitating requirements relative to closing and policy issuance in form and content approved by those parties.

After a title order has been placed, matters relative to the title policy coverage on the subject property are assembled in a title search package and examined by skilled technicians. This is when the Preliminary Report is prepared and sent to the customer. The report contains relevant information so that the parties to the transaction will become aware of matters which will not be insured against by the title company. This report is issued before the title policy, hence the name Preliminary Report.

Lux Advisors Sales | Property Management
Send
Send