Illinois Title Company
If you are buying a new home, you likely have been told that you will need to work with an Illinois title company during the purchase process. Unless you have purchased property before, you may be unsure exactly what it is the title company will do and why you need one.
What Is a Title?
Every piece of property has a deed and a title. Some people think those two items are the same thing, but they are very different. The deed to a property is an official document that states an individual’s legal ownership of that property. The title to the property refers to the rights of the owner to the property, such as the right to sell the property. There is no physical document like a deed.
The role of an Illinois title company is to ensure that the title to a property is legitimate, and the owner of the property has the right to sell to the buyer. When the title company establishes that, they will then issue title insurance. This insurance provides protection to the mortgage holder (or the owner) against any lawsuits or claims that may arise due to title disputes.
In order to establish the current owner’s title is legitimate, the title company will conduct an extensive search of all property records to confirm ownership and make sure that there is no other party that could claim full or partial ownership to the property.
In addition to ownership, the title company also looks to see if there are any outstanding mortgages, unpaid property taxes, liens, judgments, easement, leases, or any other restrictions that could have an impact on ownership rights. It is also common for the title company to require a survey of the property be done by a professional to determine property boundaries to make sure the structure is within those boundaries, and whether there are any easements or encroachments.
Once all of this has been completed, the title company will prepare a summary of what it found. This is referred to as an abstract of the title. The company will also issue a letter that addresses the title validity. This letter is considered a legal document.
Once that is complete, the company will then issue title insurance. There are two types of title insurance:
- Lender title insurance that protects the financial institution that hold the mortgage
- Owner title insurance that protects the owner
While lender title insurance is mandatory, owner’s title insurance is not, however, it is recommended as protection for the owner should a title claim come up in the future.
Call Our Office for Assistance
If you are purchasing a property and need to find a dedicated Illinois title company, contact Closeline Settlements today.
Common Myths About Title Insurance You Shouldn’t Believe
If you are considering purchasing a home, investing in title insurance should be a top priority of yours. However, if you are like many prospective homebuyers, you might not fully understand title insurance and the facts behind it. Here are a few myths about it that you should not believe.
Title Insurance Isn’t Worth the Money
From mortgage fees to closing costs, there are many costs that go into buying a home. It is perfectly understandable that homebuyers may look for ways to cut some of their costs. However, title insurance is not something you should skimp on. Although a title search will reveal defects in a title, it might miss certain risks. For example, a title search might not find an unknown heir who might try to go after the home later on. If you buy title insurance, you will protect your investment.
If You Have Home Insurance, Title Insurance Isn’t Necessary
It is certainly essential to have adequate home insurance, as it can protect your investment from various disasters. However, purchasing a policy does not mean that you should not purchase title insurance. These insurances protect entirely different things. Home insurance protects your property against fires, theft, vandalism and other disasters. Title insurance, on the other hand, protects against title encumbrances that occurred before you bought the property.
Title Insurance Must Be Paid Monthly
Many people are surprised to learn that title insurance does not require monthly payments like other types of insurance. This is because title insurance protects against events that have already happened, rather than future events. Title insurance only requires a one-time payment.
Homebuyers Can’t Select Their Title Company
This is another common myth about title insurance. The truth is that you are allowed to choose an Illinois title company to work with. Do not hesitate to speak to several title companies before selecting one.
If Home Is Brand New, You Don’t Need Title Insurance
If you are buying a home that was just built, you might think that you do not need title insurance. After all, no one lived in it before. However, you must remember that the land the home was built on has been owned by other people. As such, issues can still arise over time and title insurance is necessary.
5 Reasons to Use a Title Company When Buying a Home
Are you getting ready to buy a new home? If so, you don’t have to take this important step on your own. An experienced Illinois title company can help make the process smoother for you and ensure that everything is done correctly. Here at Closeline Settlements, we understand that not all home buyers understand the importance of hiring a title insurance company. So here are the top five reasons why you should use a company like ours when buying a home.
1. Title Insurance Protection
An Illinois title company can provide you with title insurance. This type of insurance can protect you against claims regarding the legal ownership (i.e. title) of the property or home you’re purchasing. After you purchase a home, if someone disputes the title ownership, your title insurance policy can cover any fees associated with resolving such disputes.
Though you may think it is highly unlikely that someone would dispute title ownership, this type of situation does happen, unfortunately. That is why it is so important to get title insurance to protect yourself against financial loss due to title defects.
2. Title Report
To minimize the event of a title dispute, Closeline Settlements can run a title report for you. A title report should reveal any issues with the title to a particular property (such as violations or property liens). It is crucial to view the title report before purchasing a property, but many new homeowners are unaware of this fact.
A title report provides an overview of ownership history for a property, any legal history issues, and current encumbrances. It also includes zoning laws, county information, current tax information, and property value.
3. Closing and Signing Arrangements
An Illinois title company can facilitate the closing process, including scheduling the closing time, arranging for a notary as needed, and suggesting a place to sign closing documents. Once the closing documents are signed by both the buyers and sellers, the property purchase is official.
4. Funds Disbursement
Once the closing process happens, Closeline Settlements can escrow and disburse (distribute) the funds to the lender, seller, borrower, and any other parties requiring disbursement. It can be very comforting to know this process is being handled by a skilled professional when you’re buying a new home.
5. Document Recording
Anytime you purchase a home or property, you want to make sure all the official documents are in order and recorded properly. An Illinois title company can take care of this process for you. Title companies can ensure that all documents are signed and recorded according to local regulations and that the originals are sent to the appropriate parties.
Illinois Title Company
When it comes to an Illinois title company many people don’t know that title insurance is one of the most critical protections a homeowner can invest in. It is something that many people don’t understand and it can be something that is highly misunderstood. For many people it can feel like it is waste of time and that it isn’t needed. Below we are going to break down some of the common myths and misconceptions about title insurance.
Myth #1: Title Insurence is a Waste of Money
For many people, there is this myth that title insurance is a waste of money. After all, you just invested money into a title search that was supposed to reveal any defects in the title and give your attorney or your agent time to correct them. So why would you need title insurance over things that were just cleared?
While the title search is good it cannot account for all the potential encumbrances on the title. There are some risks that can easily be missed with just the title search that could truly stand in your way of making the home yours. An example could be a fraudulent transfer somewhere in the property’s history that might not be reflected in a title search.
While you may never need to use your title insurance policy, it can’t hurt to have it as it provides you protection against anything that could go wrong.
Myth #2: You Don’t Need Title Insurance For New Properties
There are many purchases that believe that if they are buying a new lot or new construction home that they don’t need owner’s title insurance. That isn’t the case. Even if your home is brand new or you are purchasing an empty lot, the land itself has likely changed hands a number of times. The same mistakes as above can still happen.
There are also potential issues that new homes can come with. Construction contractors or subcontracted might lodge mechanics’ liens related to new construction and those may not show up in a title search.
Myth #3: Title Insurance is An Ongoing Monthly Expense
Unlike other types of insurances, title insurance isn’t an ongoing monthly expense. Most insurance policies are forward-looking, which just means that they are looking to protect you from future events. Where title insurance is looking at events that have already happened or events that could possibly have happened at the time the policy is purchased.
This means that title insurance is something you pay for once and is done at the sale’s closing, and an owner’s title policy protects you for as long as you own your home. You won’t have to worry about anything coming out monthly.
When you are looking to buy a home it is safe to say that you should get title insurance. If you have more questions about what title insurance is and what it can do for you, then an Illinois title company from Closeline Settlements is there to answer your calls.