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Title FAQs

1. What is a title?

Title is the ownership of real property, which stands against the right of anyone else to claim the property. Created by a deed into the current owner, title is a legal concept and not a physical piece of paper

2. What is title insurance?

Title insurance is a contract to indemnify against losses arising through defects in the title to real estate.

3. Why do I need title insurance?

Owning real estate is one of the most precious values of freedom in this country. Get the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.

4. What does title insurance protect against?

Some of the most common problems covered include: 

  • Unfiled or unpaid liens 
  • Inadequate legal descriptions. 
  • Mistakes in legal documents 
  • Fraudulent deeds, mortgages, etc.

5. How does title insurance differ from other types of insurance?

Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults.

6. What are the different types of title insurance?

Lenders Policy and an Owners Policy. 

  • The Lenders Policy is usually a condition of the loan and protects the mortgage lender's security interest in the property up to the value of the policy.
  • The Owner's Policy covers the purchase price of the property and protects the interest of the real estate owner. 

    • When purchasing a property, where you are also creating a mortgage, the Owner's & Lender's Policies are issued simultaneously. The title premium is based on the greater of the purchase price or the mortgage amount. You will need both types of coverage

7. How long does coverage last?

You are covered for as long as you or your heirs own the property. Even though the property may be sold, you may still have a legal obligation by virtue of the warranties in the deed conveying the property. The policy insuring you would still be in effect.

8. Why is transferring title to real estate unique?

Unlike buying a car or television, land title is permanent. While the function of most other forms of insurance is to protect you against losses arising out of unforeseen future events, the primary purpose of title insurance is to eliminate risks and prevent losses caused by defects in the title arising out of past events.

9. Isn't a deed proof of ownership?

No. A deed is simply a document transferring the right of ownership, whatever that right may be. For example, the property may have changed hands many times since the deed was issued. In addition, liens and claims outstanding against the title won't be shown on a deed.

10. What is a title search?

A title search determines, based on a search of the public record, the property owner's rights. Documents searched include court records, property and name indices. Additionally, the sellers right to transfer ownership is verified, along with claims, defects or other rights that may affect the property.

11. What kinds of problems can a title search reveal?

Examples of 'problems' would be: unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions on the land.

12. The prior owner of the property had a title insurance policy issued within the past year. Do I need another one?

Yes. A prior owner’s policy terminates when the land is transferred to another owner. Moreover, any number of events could have occurred since that prior search was completed that affect the property.

13. What do I need to bring to closing?

Each person signing any documents needs to provide an official photo-ID (e.g. drivers license or passport). If you are required to bring funds to the closing they should be in the form of a cashiers, treasurers, teller's check, money order, or certified personal check (made payable to Rochester Title).

14. How long will closing take?

Usually closing will take about one hour for a sale, and 40 minutes for a refinance, but this can vary.

15. What happens after closing?

After closing, the buyers and sellers job is over. However, Rochester Title will continue working in order to: 

  • Audit the settlement sheet and review all documents 
  • Comply with the lender's written instructions in returning their paperwork 
  • Record the deed, mortgage and other documents with the County Disburse funds as appropriate 
  • Issue the title insurance policy and any endorsements required