Why Buy Title Insurance?

Many title problems can cause the complete or partial loss of your home or property. Even the most careful search of public records will not find every title problem. Because some problems are hidden, your title may appear to be perfect, but may be a bomb getting ready to explode right from under you!

When you buy a home or property, you want to be certain that it is safely yours. Without the protection of title insurance, you’ll be in jeopardy of losing your investment. The title insurer, without any expense to you, will defend you against any attack on the title to your property.

The Walking Corpse….
The homeowner was a widow with seven sons. One of her offspring, the captain of a fishing vessel, had not been heard from for many years. Presumed lost at sea, he was declared legally dead.

When the widow passed away, her six remaining sons inherited her home. It was an attractive house, and they put it on the market at a modest price to facilitate settlement of the estate.

Recognizing a bargain, the Montgomery’s bought the property.

They were delighted with their new home – until the long lost sea captain returned from the dead. it turned out the widow’s missing son had decided years ago to start a new life elsewhere. When the captain eventually returned and found the house had been sold, he promptly filed a claim against the Montgomery’s for his rightful share of the property.

It’s an old story, but a perfect example of how Title Insurance can protect you and your property.

What Happens at Closing?

All Title Services, Inc. will search the records for any problems that “cloud” the title, endangering the ability to sell the property. We look for problems in the recording of easements, court judgments, liens, taxes, etc. We look for the mundane but critical paperwork errors! Per the land title industry information, there may be problems in about one quarter (1/4) of home sales!

Once the loan documents have been prepared, any defects in the title have been cured, any structural issues have been resolved; you’re ready to close escrow. It is a time when all the final papers are signed.

Once the documents are properly signed, we will record the deed, mortgage and other pertinent documents that require recording with the appropriate authority. We will then deliver the “loan package” to the lender, which will include all the executed loan documents. Once the lender has these, they will release their loan proceeds to the escrow agent.

Escrow is very much a person-to-person business with documents and/or monies exchanged between and among the Buyer, Seller, Land Title agency, Lender, County Auditor Office, and other parties.

All Title Services, Inc. is the one who sees that all these exchanges of documents and dollars among the parties go smoothly. After closing, you will receive loan documents, deeds and other documents in the mail.

Should You Hire a Lawyer?

Hiring a lawyer is not required by law in order to buy a house. But hiring a lawyer can help.

Think of a lawyer as insurance. A good real estate attorney is a watchdog who can lead a client through the thicket of details and paperwork required for any house sale.

Most charge a flat fee between $300 and $1,000.

Here’s what one should expect a lawyer to do:

  • Review the sales contract – Unless the condition and properties of the house are specified in the contract, the buyer may be stuck with a furnace on the verge of collapse or exposed wires dangling from the ceiling. A lawyer makes sure buyers know exactly what they’re getting, and not getting, for their money, and typically asks for modifications in the contract to protect the buyer’s interests.
  • Serve as a liaison between lender and buyer – To avoid last-minute surprises or delays, a diligent real estate lawyer will require a commitment letter from the lender, which sets exactly what conditions, if any, need to be met before the loan is approved.
  • Advise on the closing – The lawyer summarizes the documents that the client must sign, including mortgage contracts, title reports, waivers, bills of payment and any other paperwork relevant to the transaction. A lawyer will look over all of the closing material to make sure there are no problems.
  • Help settle disputes – Even after the sales contract is signed and the mortgage approved, problems may arise that require the contract to be amended. For example, the inspection report may turn up undetected problems with the house, or arguments may erupt about exactly what is included in the sale. A lawyer can help mediate these disputes.

Ask friends and relatives for recommendations when seeking a real estate lawyer. Also, you can get referrals from lawyers not specializing in real estate, bankers, agents or the local Bar association.

How to Prevent Wire Fraud

Buying and selling a home is an exciting time, but there can be pitfalls for unsuspecting consumers . The American Land Title Association wants homeowners and sellers to be aware that criminals are using wire fraud schemes to steal money meant for home purchases or the proceeds from the sale of the property. Watch this video for four tips to protect your money and advice for what to do if you’ve been targeted by a scam.

Choosing an Escrow Agent

Choosing the right land title agency to handle your sale can mean the difference between a smooth, fast closing or a delayed closing with headaches and anguish!

Selecting a land title agent for closing is a choice, which should be made carefully and decided by you the Seller. Why? You will be working closely with this person throughout the entire 45 to 60 day period of your real estate sale process.

Trust All Title Services


You place a value on being treated in a courteous, friendly manner and getting answers to your questions. Home sellers need someone to be patient and understanding when confusing property tax and other escrow issues – past and future – appear suddenly.

We realize that how we handle inquires from you, go over documents, discuss aspects of your closing process and meet your deadlines are what really matters to you! We believe you will find us comfortable to work with.

We will become like your personal secretary, complying with the terms and conditions of your instructions and keep your funds safely deposited in an escrow account. This has always been our mission so you will have peace of mind working with an experienced staff!

Frequently Asked Questions

What is a title?
A title is the foundation of property ownership. It is the owner’s right to posess and use the property.

Why is transferring the title to real estate different from transferring the title to other items, such as a car?
Because land is permanent and can have many owner’s over the year’s, various rights in land (such as mineral, air or utility rights) may have been acquired by others by the time you come into possession of it, even if the land has never before been built upon. So in order to transfer a clear title to a piece of land, it is necessary to determine whether any rights are outstanding.

What is a title search?
A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to verify the seller’s right to transfer ownership, and to discover any claims, defects and other rights or burdens on the property.

What kinds of problems can a title search reveal?
A title search can show a number of title defects and liens, as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.

Are there any problems that a title search cannot reveal?
Yes. There are some “hidden hazards” that even the most diligent title search may never reveal. for instance, the previous owner could have incorrectly stated his or her marital status, resulting in a possible claim by a legal spouse. Other “hidden hazards” include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names and clerical errors in the records. These defects can arise after you’ve purchased your home and can jeopardize your right to ownership.

What is title insurance?
Title insurance is your policy of protection against loss if any of these problems – even a “hidden hazard” – results in a claim against your ownership.

How much could I lose if a claim is filed against my property?
That depends on the claim. In an extreme case, you could lose your entire home and property – and still be liable to pay off the balance of your mortgage. Most claims aren’t that dramatic, but even the smallest claim can cost you time, money and aggravation, and you may have to pay costs for legal defense.

How does title insurance protect my investment if a claim should arise?
If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense – and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.

The owner of the property has a deed. Isn’t that proof of ownership?
Not necessarily. A deed is just a document by which the right of ownership in land is transferred, whatever that right may be. It’s not proof of ownership, and it doesn’t do away with rights others may have in the property. In addition, a deed won’t show you liens or claims that may be outstanding against the title.

Wouldn’t an abstract show property limitations and restrictions?
Maybe – and maybe not. An abstract is a history of the public records. Abstracts may contain errors and do not disclose “hidden hazards” that can threaten your property title if you do not have a title insurance policy.

What about an attorney’s opinion?
An attorney’s opinion is based on a search of the public records. So, once again, even the most exhaustive search of these records may not reveal everything. Unlike a title insurance company, an attorney is not liable if you should suffer loss because of “hidden hazards” in the title.

The owner of the property I want to purchase has lived in the home for only six months. He had a title search done six months ago. Why do I need another one?
Because the owner could, in a very short time, do many things to encumber the title. For example, he could grant easements or construction improvements that encroach on adjacent property. It is necessary to conduct an up-to-date title search to uncover any such problems.

If the builder of the home already has title insurance on the property, why do I need it again when I purchase the land from him?
A title policy insuring the builder does not protect you. Also, a great many things could have happened to the land since the builder’s policy was issued. Liens, judgments and unpaid taxes for which prior owners were responsible may be disclosed after you purchase the property – causing you aggravation and costing you money.

Are there different types of title insurance policies?
Yes. Basically there are two different types of policies – a loan policy and an owner’s policy. The loan policy protects the lender’s interest in the property as security for the outstanding balance under the buyer’s investment or equity in the property up to the face amount of the policy (Title insurers in many states offer increased policy coverage through inflation endorsements to cover increases in value due to inflation).

How much does title insurance cost?
Probably a lot less than you think. Charges vary in different sections of the country, but generally the cost of title insurance to about one percent or less of the cost of the property. And unlike other insurance premiums, which must be paid annually, a title insurance premium is paid one time only, usually at settlement. Go back to Top

How long does my coverage last?
For as long as you or your heirs retain an interest in the property and, in some cases, even beyond.

Where can I get title insurance?
From any licensed title insurance company or its representatives operating in your state. When choosing a title insurer, it is important that you look for a company with expertise and experience, as well as the financial strength to protect you should a claim arise. Your broker or attorney can recommend such a company.