Title Faq

1. What is title insurance and why do I need it?

Title Insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. Title insurance is principally a product developed and sold in the United States as a result of an alleged comparative deficiency of land records in that country. It is meant to protect and owner's or lender's interest in real property against loss due to title defects, liens or other matters.

2. What can make title defective?
  • Fraud
  • Forged Deeds
  • Unknown Heirs
  • False Affidavits
  • Unpaid Judgments
  • Unified Liens
  • Forged Documents
  • Improperly Indexed Documents

3. 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 you 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 a legal defense

4. 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 a legal defense - and pay all court costs and related fees.  Also, if the claim proves invalid, you will be reimbursed for your actual loss up to the face amount of the policy.

5. How long does my title insurance last?

For as long as you or your heirs retain an interest in the property.

6. Do I need a lawyer to close a real estate transaction?

While simple real estate transactions may be handled without a lawyer, you may want your attorney to clarify any terms that are unclear to you in any documents you are being asked to sign.

7. What is the difference between and standard ALTA Title Insurance Policy and an Eagle Owner’s Policy?

An Eagle Owner’s Policy provides expanded title coverage for owners of one-to-four family residences, including condominiums. The included coverages in the Eagle Owner’s policy offer the highest levels of protection available to homeowners.

8. Should I buy title insurance when purchasing a property from the sheriff sale or an REO?

Although the sheriff sale is designed to strip all interests and liens form properties, a sheriff’s deed does not provide any warranties. Often the results of a title search will reveal issues that need to be resolved by the foreclosing bank prior to paying off the sheriff.

9. Can I pick my own title company when refinancing or purchasing a property?

As the homeowner you have the right to choose your own title insurance company. If you do want to use a specific title company, it needs to be noted to your lender at the time of submitting your loan application. When refinancing, you have the right to choose the title company. If you do not choose one, your loan officer will choose one for you.

10. Is the premium on title insurance regulated in New Jersey?

Yes, premiums in New Jersey are a regulated cost, along with endorsements, examination fees, recording fees and transfer taxes.