Frequently Asked Questions

I know that lenders protect their interests when providing funds to home buyers by obtaining a loan policy of title insurance. Does this policy cover any of my interest or equity?

No it does not. A lender goes to great lengths to minimize the risk of lending money for the purchase of real estate. First, credit is checked as an indication of the borrower’s ability to repay the loan. Then, the lender seeks assurance that the quality of the title to the property to be acquired and which will be pledged as security for the loan is satisfactory. The lender does this by obtaining a loan policy of title insurance. This policy covers only the lender. It is up to you to protect your interests with a title insurance policy of your own.

If I do not have title insurance, what can happen?

As an example, assume real estate was purchased for $100,000. A down payment of $20,000 is made, and a lender holds an $80,000 mortgage lien, or beneficial interest. The lender acquires title insurance protecting the lender’s interest up to $80,000, but the purchaser’s down payment of $20,000 is not covered. What if some matter arises affecting the past ownership of the property? The title insurance company would defend and protect the interest of the lender. The purchaser, however, would have to assume the financial burden of his or her own legal defense. If the defense is not successful, the result could be a total loss of title.

If I purchase title insurance, what can I expect?

Title insurance will pay for defending against any lawsuit attacking the title as insured and will either clear up title problems or pay the insured’s losses up to the policy limits. For a one-time premium, an owner’s title insurance policy remains in effect as long as the insured, or the insured’s heirs, retain an interest in the property, or have any obligations under a warranty in any conveyance of it. Owner’s title insurance, issued simultaneously with a loan policy, is the best title insurance value a property owner can get.

How can there be a title defect if the title has been searched and a loan policy issued?

Title insurance is issued after a careful examination of copies of 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 in public records, other title problems may exist that cannot be disclosed in a search.

Why do I pay a settlement/closing fee?

The fee covers the cost of the closing document preparation, the closing itself and the follow-up that occurs after the closing (loan payoffs, document transmittal and recording).

Who takes care of the existing loans on the property?

Mission Title takes the responsibility for obtaining payoff amounts and processing them.

How are property taxes handled at the closing?

Taxes are paid and pro-rated per the instructions on the real estate purchase contract.

What do I need to bring to closing?

It depends on the transaction. Sometimes all that is needed is a valid, government-issued form of picture identification. As a seller, you will also need to know your tax ID number (which could be your Social Security Number or company’s EIN). Our office will advise you if you need anything else.

Do I need a survey?

A survey is always recommended, but is often not required. If the county will require a new survey before transferring the property to the buyer, a stake survey may be needed. Alternatively, depending on the endorsements your lender requires on the loan policy, you may need a Mortgage Location Survey. Surveys are conducted by land surveyors licensed by the state where your property is located. Mission Title LLC does not conduct surveys, but often works with surveyors to facilitate the transaction.

What is a stake survey?

A stake survey is another name for a boundary survey. This allows for property lines to be identified by survey markers. Additionally, these services often include a new legal description of the property and drawing of the property.

On commercial properties and even occasionally on residential/agricultural properties, buyers and sellers often enlist the services of a surveyor for an ALTA Survey, which is a detailed survey performed in accordance with the standards specified by the American Land Title Association and the American Congress of Surveying and Mapping.

What is a mortgage location survey?

A mortgage location survey is conducted for the purpose of ensuring to the lender that there are no adverse survey issues that would affect the future marketability of the property. While the cost is often paid by the buyer/borrower, a mortgage location survey provides no warranties to the buyer as to the exact location of the improvements.

Corporations and LLCs holding title?

If a corporation or limited liability company is the buyer or seller of a piece of real estate, there are certain documents that Mission Title, LLC will need to review to ensure the representative has the authority to buy, sell, or mortgage the real estate. Depending on the nature of the company, the documents needed will vary. Contact us to see what will be needed for your transaction.

Partnerships

If a partnership is involved in the real estate transaction, Mission Title LLC will need to review the Partnership Agreement. As a rule, all general partners will need to sign off on any purchase, sale, or mortgage of real estate. Contact us to see what will be needed for your transaction.

The property is in my trust

In Ohio and Kentucky, a trust is not an entity that can hold title to real estate.

Instead, the trustee of the trust holds title to the real estate in a fiduciary capacity and for the benefit of the beneficiaries. If you are selling or refinancing property held in trust, our office will likely ask for a copy of the trust, unless a proper memorandum of trust is already filed in the county. Additionally, if selling the property, ensure that you know the tax ID for the trust, as Mission Title LLC will ask for this information at closing.

I am selling property out of an estate

In the event that the property is an estate asset, Mission Title LLC staff will need to review the estate documents to ensure that the administrator/executor has the authority to sell the property. Common issues that arise when an estate is involved are Medicaid liens, estate insolvency, and whether the fiduciary has the power to sell the property without a court order.

What is a power of attorney?

A power of attorney is a document that a person (called the Principal) executes that grants certain authority to another person (called the Attorney in Fact) to do certain things on behalf of the principal. Powers of attorney vary widely; however, if one is to be used in a real estate transaction, the following must be true:

1. It must grant the power to buy, sell, or otherwise encumber real estate;
2. It must be actively in effect (and not conditioned upon some future event);
3. The principal must not be deceased; AND
4. The original document must be recorded in the county where the property is located.

In the absence of any one of these conditions, the power of attorney may not be used for a real estate transaction. If you propose to complete a transaction using a power of attorney, Mission Title LLC must first review the document to ensure it may be used in the transaction.