What is
Title Insurance?


What is A Title? 

A title is the evidence, of right, that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property or make demands on the owner as to its use. 

What is Title Insurance? 

While the functions of most other forms of insurance is a risk assumption of unforeseen future events (such as death or accidents), the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in title arising out of events that have happened in the past. to achieve this goal, title insurers perform an extensive search of the public records to determine whether there are any adverse claims to the subject real estate. 

Why do i need title insurance?

Title insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. there may be hidden title defects that even the most careful title search will not reveal. In addition to the protection from financial loss, title insurance pays the cost of defending against any covered claim. 

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 still result in the loss of your property.

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 Lenders Policy. this policy only insures that the financial institution has a valid, enforceable lien on the property. 
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. 

How much does title insurance cost?

The one-time premium is directly related to the value of your home. Typically, it is less expensive than your annual auto insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you or your heirs own the property. 

when should i look into purchasing title insurance?

Call Legacy Title Group as soon as you and your borrower are ready to move forward or you and your seller sign the earnest money contract. With a brief summary of the details, our team of title experts will begin a search of the public records and issue a title commitment. Because there are a number of steps we must take to make certain that we know all we can about the title, it is wise to get the ball rolling as soon as possible. 

how can you hold Title?

Real property can be held by a sole owner, or it may be jointly owned by two or more people. Common types of concurrent ownership (co-ownership) are tenancy in Common and Joint Tenancy. 
-Tenancy in Common allows for individual interest in the property. This means that each owner has the right to transfer their ownership interest as they see fit. tenancy in Common also allows for ownership to be any fraction of the whole, and there is no right of survivorship. each tenant owns an interest which vests in his/her heirs or devises upon death. Tenancy in Common is presumed in Colorado law; Joint Tenancy exists only if it is expressly stated in the deed. 

-Joint tenancy allows undivided ownership of a property by two or more individuals. the main difference with joint Tenancy is that it includes the right of survivorship. When a joint tenant dies, his/her interest in the property is then transferred directly to the surviving owner(s). 

**these are simply definitions of common types of ownership for real estate in Colorado, these are not recommendations. For recommendations regarding your specific situations, please consult a tax adviser or attorney. 

Why a home Warranty?

A Home Warranty is a way that home owners may transfer the risk of unexpected service, repairs or replacement of household appliance and systems. Contract terms vary by company, including what appliances and systems are covered as well as length of coverage. Home Warranty coverage may be provided by the home seller as a benefit to the home buyer, or home buyers may purchase a warranty at the time of closing to cover any unexpected issues. These warranties provide coverage for the home buyer in the first year or two of ownership (depending on the plan purchased) while the buyer is adjusting to the expenses of the new property. 

Why a home Inspection?

Since the purchase of a home is often the largest investment a family makes- it makes sense to have the property you are purchasing reviewed by a certified home inspector. A home inspection will provide an objective look at the property and its systems, noting any issues, repairs or maintenance that are needed to keep the physical structure of systems of the house in good order. 

A standard home inspection will cover interior and exterior structural aspects of the house including: Roof, Framing, Doors, Windows, Foundation, Ceilings, Walls, Plumbing, Electrical Systems, Visible Insulation, Ventilation, Heating and Cooling systems. Other optional areas may also be added, such as sewer and radon testing. 

The cost of a home inspection varies by geographic area, size of the property, etc... Other optional add-ons will also impact the over all cost. 

A home inspection will give the home buyers more knowledge regarding the current state and necessary maintenance before the purchase. 

Why an Appraisal?

If a lender is part of your transaction, they usually require an appraisal. Most real estate transactions involve a licensed appraiser estimating the market value of the property being sold. this generally ensures the lender of an unbiased, objective value of the property for the loan they are issuing. 

During the appraisal, the appraiser will take measurements, pictures, and examine the property's amenities and condition. The appraiser will take this information as well as research the recent sales of other similar properties in square footage, location, age, condition and amenities (i.e. single story, attached garage). This will enable the appraiser to put a comparable market value on the property.

With certain types of loans, such as FHA and VA, there may be specific things that need to be done for the property to qualify for the loan. These can include items such as paint, roofing, and other structural repairs. 

Once the report is completed, your lender will provide you with a copy of the appraisal for your viewing.