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What is title?
Title is the right to, or ownership of, a specific real estate property. The main rights conferred by a real estate title are: right of possession, right of control, right of exclusion, right of enjoyment, and right of disposition. Change in ownership can be initiated by a will, court decree, law, or sale of a property. The transfer in ownership is recorded in a deed and filed with the registry of deeds.
What is a deed?
A deed is a legal document that records a transfer in ownership from one person to another, and is filed with the registry of deeds.
What is the difference between title and deed?
Simply put, a title defines the rights of ownership for a property and the deed is the legal document that transfers ownership. Title is the right to, or ownership of, a specific property. Ownership, and all the rights and duties of each individual that holds the title for a property, is recorded in a legal document that is filed with county records. This document is referred to as the deed.
What is a note?
A note is a written promise to pay a specific amount of money, usually at a specified interest rate, and at a stated time to a named payee. It may also contain other terms such as penalties for late payments, a provision for attorney’s fees if legal action is required to collect payment, the right to collect payment in full if the note is secured by property and the property is sold, and whether the note is secured by a mortgage or deed of trust.
A note is not a mortgage. A note is a promise to pay, while a mortgage is similar to a deed in that it transfers and defines the conditions of ownership. In a residential purchase, a homebuyer typically signs both the note and the mortgage, but not always. A mortgage is filed with Registry of Deeds records, but a note goes directly to a lender.
What is title insurance?
Title insurance protects a homeowner or lender against financial loss from real estate title defects or liens against a property. Any property that has undergone several transfers of ownership — including when it was undeveloped land — could have a hidden title issue or defects that can affect the current homeowner or lender.
Do I need title Insurance?
Owners title insurance is not required but it is highly recommended. Real estate may be the largest purchase you make in your life and deserves to be protected. Title insurance is the best protection you can get against claims that could take away your real estate. If you borrow money secured by a mortgage, lender’s title insurance will probably be required. If you purchase a lender’s policy, the owner’s title insurance policy is sold to you at a discount. In addition, there is no extra charge for an inflation rider which is added to every policy and which will increase coverage as required, up to 50 percent in addition to present coverage. Title insurance has a one-time charge (at closing) so you won’t have to pay monthly or yearly charges.
Do I need title Insurance?
Owners title insurance is not required but it is highly recommended. Real estate may be the largest purchase you make in your life and deserves to be protected. Title insurance is the best protection you can get against claims that could take away your real estate. If you borrow money secured by a mortgage, lender’s title insurance will probably be required. If you purchase a lender’s policy, the owner’s title insurance policy is sold to you at a discount. In addition, there is no extra charge for an inflation rider which is added to every policy and which will increase coverage as required, up to 50 percent in addition to present coverage. Title insurance has a one-time charge (at closing) so you won’t have to pay monthly or yearly charges.
Do I need title Insurance?
Owners title insurance is not required but it is highly recommended. Real estate may be the largest purchase you make in your life and deserves to be protected. Title insurance is the best protection you can get against claims that could take away your real estate. If you borrow money secured by a mortgage, lender’s title insurance will probably be required. If you purchase a lender’s policy, the owner’s title insurance policy is sold to you at a discount. In addition, there is no extra charge for an inflation rider which is added to every policy and which will increase coverage as required, up to 50 percent in addition to present coverage. Title insurance has a one-time charge (at closing) so you won’t have to pay monthly or yearly charges.
Do I need title Insurance?
Owners title insurance is not required but it is highly recommended. Real estate may be the largest purchase you make in your life and deserves to be protected. Title insurance is the best protection you can get against claims that could take away your real estate. If you borrow money secured by a mortgage, lender’s title insurance will probably be required. If you purchase a lender’s policy, the owner’s title insurance policy is sold to you at a discount. In addition, there is no extra charge for an inflation rider which is added to every policy and which will increase coverage as required, up to 50 percent in addition to present coverage. Title insurance has a one-time charge (at closing) so you won’t have to pay monthly or yearly charges.
What can make a Title defective?
Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These hidden “defects” are dangerous indeed because you may not learn of them for many months or years. Yet they could force you to spend substantial sums on a legal defense, and you may still lose your property over the defect.
But the lender already requires Title Insurance. Won’t that protect me?
Not necessarily. There are two types of Title Insurance.
Your lender likely will require that you purchase a Lender’s Policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance, and they typically require the borrower to pay for it.
An Owner’s Policy on the other hand is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner’s title policy covers the full cost of any legal defense of your title.
What does a lawyer do for me when I am buying real estate?
In general, a lawyer represents a buyer in purchasing real estate by negotiating the purchase and sale agreement, assuring that the terms of that agreement are met, and attending the closing. A lawyer could also assist a buyer with answering questions and making recommendations throughout the closing process.
What does a lawyer do for me when I am selling real estate?
In general, a lawyer represents a seller by writing the first draft of the purchase and sale agreement and then negotiating its terms, assuring that the terms of that agreement are met, drafting the seller’s closing documents such as the deed, and attending the closing. A lawyer could also assist a seller with answering questions and making recommendations throughout the closing process.
My lender says that my attorney can also represent the lender when I am buying real estate. What does that mean?
A buyer in a real estate transaction will have an attorney, but the buyer’s lender will also have an attorney to check the title to the property, see if any taxes are due, draft the closing documents, issue title insurance, handle the closing funds, ensure that the proper documents are recorded at the Registry of Deeds and oversee other matters. Many lenders will allow the buyer’s attorney to also handle this work for the lender. There can be greater efficiencies with one attorney handling all aspects of the buyer’s side of the deal. Some lenders will not allow a buyer’s attorney to perform the lender’s work and will require that a certain attorney chosen by the lender do it. However, the buyer should still have his or her own attorney to represent the buyer in the process.