BELOW ARE SOME ANSWERS TO COMMONLY ASKED QUESTIONS REGARDING TITLE INSURANCE.

Q: WHAT IS TITLE INSURANCE?

A: Title Insurance is a policy that protects the insured against loss should the condition of title to land be other than as insured. In non-legal speak, it is an insurance policy that insures you that if there are disputes over the ownership of your property or the scope of the land you own, the company will defend your interest.

Q: WHY DO I NEED TITLE INSURANCE?

A: When you buy a home, or any property for that matter, you expect to receive ownership free and clear with the ability to occupy and use the property as you wish. Title insurance is designed to cover these rights.

Q: IF I ALREADY HAVE AN OWNER'S POLICY, WHY DO I NEED TO GET TITLE INSURANCE AGAIN WHEN I REFINANCE?

A: There are two types of title insurance: owner's title insurance and lender's title insurance.
The Owner's Policy is typically issued when the property is initially purchased and insures the property owner. This policy is in effect for the entire time in which you are the owner of the property and it insures your rights to the property.
The Loan Policy insures the lender and is typically required whenever a loan is taken out against the property and is based on the dollar amount of the loan. During a refinance or when taking out a home equity loan, the lender requires title insurance to protect their interest in the property. This type of policy only protects the lender's interest in the property and has no guarantees to the buyer which is why the Owner's Policy is so important.

Q: WHY DO I NEED TITLE INSURANCE FOR A NEWLY BUILT HOME?

A: New construction is exciting in many ways. While the home that you are building will be uniquely yours in terms to the design and options selected, the land you are building on does have a storied history. There were prior owners of the unimproved land and unpaid taxes, boundary line disputes and other liens can affect vacant land in the same ways as they do to existing homes and developments. A title search will uncover any existing liens and purchasing an Owner's Policy of Title Insurance, will protect you from covered risks to the ownership of your home.

Q: WHAT IS THE DIFFERENCE BETWEEN THE STANDARD POLICY AND THE EAGLE POLICY?

A: The EAGLE Policy is the most comprehensive coverage. It covers all of the possibilities provided for in the Standard policy, plus these additional risks:
1. Post-policy forgery against the insured interest.
2. Forced removal of residential improvements due to lack of an appropriate building permit (subject to deductible).
3. Post-policy construction of improvements by a neighbor onto insured land.
4. Damage to residential structures from use of the surface of insured land for extraction or development of minerals.
While there is a higher premium for the EAGLE Owner's Policy, the purchase of Owner's coverage occurs only at the time of deed transfer and the policy stands for as long as you owner your home. Amortized over the years in which you will enjoy your home, the confidence of having this additional coverage becomes priceless.

Q: IF I AM USING HOLLISTER LAND SERVICES, WHY IS FIRST AMERICAN REFERENCED IN MY CLOSING DOCUMENTS?

A: Hollister Land Services, LLC, is an agent for the underwriter First American Title Insurance Company. The set-up is similar to how you may have a local agent who handles your car insurance needs, but the policy lists a larger, nationally recognized company as the insurer. Hollister Land Services, LLC serves as your primary point of contact but should there be a claim or need for legal representation, you have the benefit of one of the largest title insurers at your side.