Title services info and Real Estate

Owner's Policy. A lender’s title insurance policy does not protect you. Similarly, the prior owner’s policy does not
protect you. If you want to protect yourself from claims by others against your new home, you will need an
owner's policy. When a claim does occur, it can be financially devastating to an owner who is uninsured. If you
buy an owner's policy, it is usually much less expensive if you buy it at the same time and with the same insurer
as the lender's policy.

Choice of Title Insurer. Under RESPA, the seller may not require you, as a condition of the sale, to purchase title
insurance from any particular title company. Generally, your lender will require title insurance from a company
that is acceptable to it. In most cases you can shop for and choose a company that meets the lender’s standards.

Review Initial Title Report. In many areas, a few days or weeks before the settlement or closing of the escrow, the
title insurance company will issue a "Commitment to Insure" or preliminary report or "binder" containing a
summary of any defects in title which have been identified by the title search, as well as any exceptions from the
title insurance policy’s coverage. The commitment is usually sent to the lender for use until the title insurance
policy is issued at or after the settlement. You can arrange to have a copy sent to you (or to your attorney) so
that you can object if there are matters affecting the title which you did not agree to accept when you signed the
agreement of sale.

Coverage & Cost Savings. To save money on title insurance, compare rates among various title insurance
companies. Ask what services and limitations on coverage are provided under each policy so that you can decide
whether coverage purchased at a higher rate may be better for your needs. However, in many states, title
insurance premium rates are established by the state and may not be negotiable. If you are buying a home which
has changed hands within the last several years, ask your title company about a "reissue rate," which would be
cheaper. If you are buying a newly constructed home, make certain your title insurance covers claims by
contractors. These claims are known as "mechanics’ liens" in some parts of the country.

Survey. Lenders or title insurance companies often require a survey to mark the boundaries of the property. A
survey is a drawing of the property showing the perimeter boundaries and marking the location of the house and
other improvements. You may be able to avoid the cost of a complete survey if you can locate the person who
previously surveyed the property and request an update. Check with your lender or title insurance company on
whether an updated survey is acceptable.