Title Insurance
What is Title Insurance?
Title Insurance is insurance on the property title that protects the lender or homeowner in case of title defects. In other words, your policy is an assurance of your ownership interest.
A title policy defends buyers (and their lenders) from future property ownership claims, surprise liens, and other potentially costly complications with property titles.
Smart homebuyers acquire Owner’s Title Insurance. It offers peace of mind and an assurance of financial protection on the most important investment you will ever make . . . your home.
An Owner’s Title Insurance policy from Landmark Title Agency South will give you protection against title defects—many of which could result in loss of title to your home.
Why do I need Title Insurance?
Careful title examination will not protect you from these many types of errors including undisclosed heirs, forgery, mental incompetence, name confusion, fraud of false representation, defective deeds, marital rights, and execution by minor. Nor will a review of the property’s ownership history or the lender’s policy. Only an Owner’s Title Insurance policy from Landmark Title will give you protection against title defects—many of which cold result in the loss of title to your home.
If a valid claim is made against your title—and you do not have title insurance—you are responsible for all of the costs including attorney fees, court costs, and any payment required to resolve the claim.
What will my Owner’s Title Insurance Policy cover?
Your Owner’s Title Insurance policy covers matters affecting access, rights of way, many survey conditions, mechanic’s and materialmen’s liens, subordinations, tax liens, prescriptive rights, and assessments.
If a claim is made against your title, Owner’s Title Insurance protects you:
- At the underwriter’s expense, defending your title in court in necessary;
- At the underwriter’s expense, settling the claim against your title if the claim proves valid. Either the claim will be disposed of or you will be reimbursed.
Your Owner’s Title Insurance will stay in force as long as you or your heirs own the property.
Comparison of Title Insurance Types
Lender's Title Insurance Policy
Most lenders require a Lender’s Title Insurance Policy for mortgage loans. The cost for this policy is basd on the amount of the loan and it protects the lender should a title problem arise.
Protects lender against title defects that might affect mortgage loan security
Provides lender a valid lien for borrower’s property in case of foreclosure
Policy coverage decreases over the life of the loan
Insures lender only
(not buyer)
Owner's Title Insurance Policy
An Owner’s Title Insurance Policy protects the buyer from defects or errors in recorded documents including title defects not shown in public records such as:
Undisclosed heirs
Forgery
Mental incompetence
Name confusion
Fraud of false representation
Defective deeds
Marital rights
Execution by minor
How much will my Owner’s Title Insurance Policy cost?
As regulated by the Ohio Department of Insurance, title insurance usually costs less than 1% of a property’s sale price. The premium for your title policy is a one-time fee and is paid in full at the time of closing or within 30 days of your closing date.
When will my policy be issued?
A policy is issued after title examination and related documents have been executed an recorded following the closing.
Lender's Title Insurance Rates
Lender’s Policies are required by most lenders today. Rates are loan amount based:
| Up to $150,000 of liability* | $4 per thousand | |
| $150,000 up to $250,000 | $600 + | $3.25 per thousand |
| $250,000 up to $500,000 | $925 + | $2.50 per thousand |
| $500,000 up to $10,000,000 | $1,550 + | $2.25 per thousand |
| *Minimum of $125 |
Owner's Title Insurance Policy
Owner’s Title Insurance Policy rates are purchase price based:
| Up to $150,000 of liability* | $5.75 per thousand | |
| $150,000 up to $250,000 | $862.50 + | $4.50 per thousand |
| $250,000 up to $500,000 | $1,312.50 + | $3.50 per thousand |
| $500,000 up to $10,000,000 | $2,187.50 + | $2.75 per thousand |
| *Minimum of $175 |
Note: You may benefit from substantial savings by also ordering an Owner’s Title Insurance Policy, if you are purchasing a new home and obtaining financing to assist you in the purchase. A simultaneous issue fee may be charged.
A binder or commitment charge outlining any matters that affect the title at closing is typically required. This document is supplied to the owner or lender prior to closing.
Fees are subject to change. Please contact Landmark Title Agency South for fees and costs relating to your closing.