It's Back. Ask the Title Expert: Part 2

It has been a while but myClosingSPACE.com is back with the second installment of the Ask the Title Expert Series. These questions represent some of the more common queries we hear in our daily work. If you have any questions that you would like to see reviewed and answered please feel free to leave them here. We want to help everyone understand title insurance and the closing process.

myClosingSPACE.com Director of Customer Service Annette Leoncini again helped with this by providing the following questions she commonly hears.

Question 1: Does the quote I received include a new survey?
Answer: No, obtaining a survey is outside the scope of title insurance, however, we can order the survey for you. Some of you may be wondering what a survey is exactly. A survey is a professional examination of a property. A survey usually will reveal the size of a property, its boundary distances, ground contours and where improvements or alterations have been made.

Question 2: When should I order title insurance?
Answer: If you are purchasing your home, you should order title insurance approximately 2-3 weeks prior to your estimated closing date. If you are refinancing, you should order title insurance when you have been pre-approved for a mortgage. Waiting too long to order title insurance can delay your closing and add additional tax and interest liabilities.

Question 3: I am refinancing my home. Why do I need to purchase a new owner’s policy?
Answer: You don’t. What you are purchasing is a lender’s policy. This policy protects the lender's valid mortgage lien on the subject property against any undiscovered liens or title issues. This policy is issued for the original amount of the mortgage. The fee for this policy is state regulated. When refinancing, a discounted re-issue rate is charged based on the prior mortgage or original purchase price. A Lender's title insurance Policy is issued in the amount of the mortgage loan to assure the lender's priority position on the lien and expires when the loan is paid off. When you are refinancing the new mortgage lender has paid off the original loan thus rendering the lender's policy expired. The new lender requires a new policy to cover their loan. A policy of title insurance usually insuring an owner of real estate against loss occasioned by defects in, liens against, or unmarketablility of the owner's title. An Owner's title insurance Policy protects the owner's investment in the property for as long as they or their heirs have an interest in the policy.

We really want to keep this series going and answer all of your title insurance related questions so if you have a question please ask it here or email me here.