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Island Realty Group
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|~ SALES OF OCEAN CITY NEW JERSEY REAL ESTATE INCLUDING HOMES - CONDOS & INVESTMENT PROPERTIES ~|
Title Insurance FAQ's
Why do you need Title Insurance?
When a buyer purchases realty, he or she wants to be sure that realty received is free and clear of any defect in the title resulting from
the chain of title and any encumbrances, such as mortgage or judgment liens. Title insurance insures the buyer against any losses
resulting from the aforesaid defects. Should a discrepancy arise, it is the title insurance company's obligation to provide legal
support to the insured party.
What is a Title Search?
A title search is a means of determining that the person who is selling the property really has the right to do so and that the buyer is getting
all the rights to the property (title) for which he or she is paying.
What steps are involved in a Title Search?
Chain of Title
The information may be derived from public records, usually maintained in the county clerk's or recorder's office.
In addition to ownership, the existence of any mortgages or other liens against the property will be revealed.
Tax and Municipal Lien Search
The search will reveal if payments are current or whether they are past due and unpaid from previous billing periods.
In addition, the search will indicate the existence of any special assessments against the property and, if so, whether or not these
assessments are current or past due.
Judgment and Name Search
previous owners that were in existence while they were in title. A judgment is a general lien against the debtor's real estate and
constitutes security for any money owed under the judgment. The real estate can be sold to satisfy the judgment.
Rights established by judgment decrees, unpaid federal income taxes, and vendor (builders, for example) filed notices of
claim of unpaid balance all may be prior claims on the property, ahead of the buyer's or lender's rights. If a judgment is
discovered that constitutes a defect in the title, it is pointed out and the seller must then eliminate it before the title
to the new buyer can be insured free and clear of that judgment.
it will insure the title. The buyer and seller and the mortgage lender can proceed with the closing of the transaction after
clearing up any defects in the title that may have been uncovered by the search and examination.
Who needs Title Insurance services?
Any individual, corporation, or organization involved in the transfer of title or deed for real property, or the mortgaging of real
property will need the services of a title insurance company.
Who uses the services of a title agent?
What is the cost of Title Insurance?
Title insurance rates are set by the New Jersey Department of Banking and Insurance and is based upon the sale price of the realty,
or, in the case of a refinance, the amount of the mortgage obtained.
Our Preferred Title and Settlement Agency is Shore Title Agency offering 6 locations to serve your real estate needs.