Title Insurance 101

Many people who are in the market to purchase property in the Lake of the Ozarks area, have questions about title insurance.  If you are new to the home buying process, Arrowhead Title wants to help you understand the basics of title insurance, and the services we can offer you as Lake of the Ozarks’ most trusted title company.  

Glossary of Important Title Insurance Terms:

Title: A title is a written legal document that proves ownership of a property by an individual – insuring your property title keeps any past unknowns from nullifying your property ownership 

Escrow: Escrow is a commonly misunderstood term – Escrow actually refers to a period of time.  This is the time frame where a third party (such as a title company) holds a bond, deed, or another form of funds that will only take effect after certain conditions are fulfilled and the transaction is ready to be completed (the property buyer is ready to become the property owner).

Title search: During escrow, the title search is conducted by the third party (the title insurance company in this case).  A title search is different than an O&E report.  The title search is used to find mishaps in past titles for the property. The O&E report, on the other hand, is used to provide buyers current information on title matters. 

Lien: When an individual is in debt to someone (the lienholder) –the lienholder has the ability to become the owner of the debtor’s property until the debt owed by that person is paid in full.

Arrowhead Title Services:

Title insurance is not as well understood as other types of insurance but is just as important.  When purchasing real estate, you are purchasing the title to the property – the right to occupy and use the land.  That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss.  Title insurance protects against these types of hazards. 
An important part of title insurance is its emphasis on risk elimination before insuring.  This gives you, as policyholder, the best possible chance for avoiding title claim and financial loss.  After our careful search and examination of the public land records, we issue the commitment for title insurance on behalf of our underwriter Stewart Title to determine insurability and report any “material objections” to the title.  These title problems are disclosed so that they can be corrected prior to closing. 
Title insurance is also your line of defense against hidden hazards such as forged signatures, unauthorized signatures, unknown heirs, invalid power of attorney, and mistakes in public records. 
It is our goal to minimize your risk and maximize your investment.

The title report may be issued for a property you are interested in but are not purchasing.   It does not provide any insurance but does provide valuable information concerning the property such as most recent owner, taxes, outstanding deed of trust and possible liens.
Let us put our customized services and leading technology to work for you for your next real estate transaction.

We provide all services necessary to conduct your closing.  We will coordinate with the realtor, lender, buyer and seller, builder, homeowner association, etc. to make sure that your closing statement is an accurate reflection of the sale.  We also provide standard documents necessary for closing such as the Warranty Deed, Bill of Sale, and affidavits. 
Let us put our customized services and leading technology to work for you for your next real estate transaction.

We are experienced in the most complex of commercial real estate transactions.  We understand the necessity of confidentiality and flexibility.   We will treat your investment with utmost care and professionalism.
Let us put our customized services and leading technology to work for you for your next real estate transaction. 

At Arrowhead Title, Inc. we hope to provide trusted title services at the Lake of the Ozarks. We also feel it is highly important to provide basic information on title insurance to potential new property buyers.  In this blog, we covered the basics of title insurance. However, if you have any questions please contact us and we will help you with your title needs.  

The Lake of the Ozarks' Most Trusted Title Company
Where Accuracy Matters!


Popular posts from this blog

Title Commitment vs Title Report

Why Would I Need a Title Search vs Owners and Encumbrance

9 Fun Facts About Title Insurance