Our in-house title company, Arbor Title, Inc. can provide both title insurance policies and real estate closing services to both Buyers and Sellers.
Title Insurance is in essence a statement of the Seller's rights in title to a particular piece of real property. It takes risk out of acquiring a piece of property whose legal history is unknown to the Buyer. Title Commitments set forth the encumbrances, limitations on rights, liens, and other clouds on the title to the property. The title insurer will exclude these items from the policy as exceptions to Buyer's coverage unless they are removed. Satisfactory review of certain evidence or other documents will generally result in a removal of some exceptions. A survey and affidavit from the prior owner is the most common method of removing most of the standard exceptions to a title policy. Surveys will provide the location of where improvements (such as a home or building) are located on the property, the boundary lines of the property, the locations of easements on the property, and any encroachments by adjacent property owners. Other exceptions, such as Homeowner Association Covenants and Restrictions will not be removed from policies, but be provided for a purchaser's review. Still other exceptions, such as mineral rights exceptions will not be removed but lets the purchaser know that when they take title to the property, they do not own the minerals underneath the property. Title insurance assists a buyer in understanding what in essence they are really purchasing and the limitations and burdens on their ownership. If a Buyer forgoes a title insurance policy, he does so at great risk.
Visit Arbor Title, Inc. for more information and real estate closing and title insurance services.
