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Step 1: The buyer and seller sign the sales contract, which is given to the closing agent. Escrow is given to the escrow agent, who will then give a title order. Tax information, loan payoffs, surveys if necessary, homeowner/maintenance fees, inspections/reports, and hazard and other insurances, legal papers, and a title search are ordered.
Step 2: A title search and examination takes place to ensure that the seller has the legal right to sell the property to the buyer and that there are no outstanding debts against the property. Deeds, mortgages, paving assessments, liens, wills, divorce settlements and other documents affecting the property title will be analyzed.
Step 3: The closing agent prepares closing statements and schedules the closing.
Step 4: The transaction is settled when the seller signs the deed and closing affidavit and the buyer signs the new note and mortgage.
Step 5: After the closing, the escrow agent takes care of forwarding payment to all parties involved in the closing. Title insurance policies are prepared, and transaction documents are sent to the county of the property.

Title insurance comes in two different forms: lender (mortgagee) coverage and owner’s coverage. Most lenders will require homebuyers to have lender coverage. Owner’s coverage will last for as long as you have interest in the insured property.

Title insurance helps protect you from flaws in the property’s title. These flaws could include:

• Deeds, wills, or trusts containing improper wording or incorrect names
• Outstanding mortgages and judgments, or a lien against the property because the seller has not paid taxes
• Easements that allow construction of a road or utility line
• Pending legal action against the property
• Incorrect notary acknowledgements.

A title search can help detect some of these areas of concern, but it is not foolproof. Errors not caught during a title search could include:

• A forged signature on the deed
• An unknown heir of a previous owner who is claiming ownership of the property
• Instruments executed under an expired or a fabricated power of attorney
• Mistakes in the public records

Title insurance provides financial protection from these risks. A home is a large investment, and title insurance helps you protect that investment and provides peace of mind.

What other types of coverage does First Centennial Title Agency offer homebuyers or home sellers?

Besides title insurance, First Centennial can also provide homebuyers or sellers with home warranty, property and casualty, errors and omissions, bonds, and other personal insurance coverage.

What is First Centennial Title Agency doing to facilitate homeownership in traditionally underserved homebuyer segments?

First Centennial Title Agency Multicultural Markets is committed to working with title agent offices, real estate professionals, lenders, and consumers, and through our partnership with national trade organizations, we serve homebuyers in traditionally underserved segments.

Does First Centennial Title Agency offer title insurance for timeshares?

Yes. First Centennial Title Agency Vacation Ownership provides solutions to the unique and complex challenges of timeshare development — solutions forged from superior industry acumen, unequaled market experience, and state-of-the-art technology and systems.

Why you need Title Insurance?

To protect possibly the most important investment you will ever make; the investment in your new home. A lender goes to great lengths to minimize the risk of lending you the money you need to buy a home. First, your credit is checked as an indication of your ability to pay back your loan. Then, your lender goes a step further, she or he makes sure that the quality of the Title to the property you are about to buy and which you will pledge as security for the loan is satisfactory. The lender does this by obtaining a Loan Policy of Title Insurance.

The Loan Policy doesn’t protect you?

The Loan Policy protects the lender against loss due to unknown defects. It also protects the lender’s interest from certain matters that may exist, but not be known at the time of the sale. This policy only protects the lender’s interest; it does not protect you. That’s why you need an Owner’s Policy, which can be issued at the same time as the Loan Policy for a nominal one-time fee.

What danger of loss can you face?

As an example, let’s say you’ve bought a home for $90,000.00. You’ve made a $20,000.00 down payment, and your lender holds a $70,000.00 mortgage lien or a beneficial interest. Your lender has Title Insurance coverage protecting her/his interest up to $70,000.00. But your $20,000.00 is not covered. What if some matter arises affecting the past ownership of the property? The Title Insurance company would only defend and protect the interest of the lender. You would have to assume the financial burden of your own legal defense. If your defense is not successful, the result could be a total loss of Title.

The Title Insurance company pays the lender’s loss and is entitled to take any assignments of your debt. You are out your down payment, other equity in the property, which you have accumulated, and your new home. Plus, you still owe the remaining balance on your note.

How can there be a Title defect if the Title’s been searched & Loan Policy issued?

Title Insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no Title hazards are present, despite the knowledge and experience of professional Title Examiners. In addition, to matters shown by public records, other Title problems may exist that cannot be disclosed in a search.

What does Title Insurance protect against?

Here are just a few of the common hidden risks that can causes a loss of Title or create
an encumbrance on Title:

• False impersonation of the true owner of the property.
• Forged deeds, releases, or wills.
• Undisclosed or missing heirs.
• Instruments executed under invalid or expired power of attorney.
• Mistakes in recording legal documents.
• Misinterpretations of wills.
• Deeds by persons of unsound mind.
• Deeds by minors.
• Deeds by persons supposedly single, but in fact married.
• Liens for unpaid estate, inheritance, income or gift taxes.
• Fraud

What protection does Title Insurance provide against defects & hidden risks?

Title Insurance will pay for defense against any lawsuit attacking your Title as insured, and will either clear up Title problems or pay the insured losses. For a one-time premium, an Owner’s Title Insurance policy remains in effect as long as your, or your heirs, retain an interest in the property, or have any obligation under a warranty in any conveyance of it. Owner’s Residential Title Insurance, issued simultaneously with a Loan Policy, is the best Title Insurance value you can get. First Centennial Title protects against Title loss by combining expertise in risk elimination at the time of issuing your policy, and protection against hidden risks as long as the policy remains in effect.