What is Title Insurance?
An Owner’s Title Policy protects the buyer’s property rights in the event that a defect is discovered in the title to the property. Examples of defects include liens, tax assessments, or back child support that may have attached to the property, as well as undiscovered easements, forgeries and other risks. New Castle Title provides a system of checks and balances to ensure all is done correctly and accurately. Consequences to not getting Title Insurance can range greatly, a few scenarios are illustrated below:
- A prior owner/seller used an expired Power of Attorney. | This would void the deed and the purchaser would be out.
- A prior owner/seller did not sign the deed. | This would provide an invalid deed.
- Life Estate Interest was not terminated. | This would allow the current resident the right to live there.
- A Mortgage was missed, and not paid off. | The new buyer must pay the old mortgage.
- Lack of Right Of Access. | There would be no legal description of the designated way to get to your property.
- Survey Issues. | Easements and boundary lines would not be valid.
- Special Assessments due were not paid. | The new buyer must pay the outstanding dues.
- Fraud or lack of notarized signatures. | This creates invalid documents.
What is a Lenders Title Policy?
A Lender’s Title Policy is required by most lenders and it protects their interest in the property since they have an investment in the form of funds loaned to the borrower.
Who pays for Title Insurance?
In Wisconsin, the seller typically pays for the owner’s policy and the buyer pays the loan policy.
In Minnesota, the buyer typically pays for both the loan and the owner’s policy.
How is Title Insurance different from Homeowners Insurance?
Homeowners insurance protects the home and personal property against possible future events such as natural disasters. Premiums are paid regularly.
Title insurance protects your property rights against unknown defects in title that may arise based on past events such as liens, tax assessments, easements, forgeries and other risks that can attach to the property. There is only one premium due at the time of purchase.
How can I save money on Title Insurance and what is Prior Title Evidence?
Prior title evidence, also known as a “Prior,” is the Title Insurance Commitment or Policy (or in some cases, an Abstract) the owner received when they purchased the property. Providing this prior title policy when the order is placed with New Castle Title may qualify you for a discount.
Can New Castle Title service counties outside the five county area?
New Castle Title can provide services in many counties throughout Wisconsin or Minnesota. Just ask, and if we cannot help we may be able to refer you to a title company in that county.
Can a buyer/seller choose their preferred title company, even if they have a real estate agent?
Yes. The party paying for the title insurance has the right to choose a company to work with. In Wisconsin, this is typically the seller. In Minnesota, this is typically the buyer.