How does title insurance differ from other types of insurance?
Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults.
Another difference is that, with title insurance, you pay a one-time premium instead of ongoing premiums as in other types of insurance.
Why do I need Title Insurance?
Owning real estate is one of the most precious values of freedom. When you buy a home, you want to be sure the property is properly conveyed and free from unexpected adverse interests. Once it is purchased, title insurance remains in effect for as long as you own your home. Title insurance adds security and peace of mind to home ownership.
How long does my coverage last?
Once purchased, title insurance remains in effect for as long as you own your property.
How do I obtain Title Insurance and what does it cost?
Let the title company, attorney or agent handling the closing of your property know that you want to purchase an Owner's Title Insurance Policy. When choosing a title insurer, you should look for a company with experience, as well as the financial strength to protect you.
The Insurance Commissioner approves the premiums for title insurance policies. It is customary in Colorado for the seller to pay for the buyer/purchaser standard coverage policy. The premium is only paid once. The cost depends upon the purchase price of the property, and your policy amount must be equal to the purchase price.
What is an Owner's Policy? Why do I need one?
An owner's policy protects you, the purchaser, against a loss that may occur from a fault in your ownership or interest you have in the property. You should protect the equity in your new home with a title policy. It offers:
Protection from financial loss due to covered claims that may be asserted against the title to your home up to the face amount of the title policy
Payment of legal costs if the title insurer has to defend your title against a covered claim
Payment of successful claims against the title to your home is covered by the policy up to the face amount of the policy.
What is an Endorsement?
An endorsement is an additional coverage for special requirements in addition to our standard policy coverage.
What Endorsements should be considered?
Form 100 (Comprehensive Lender's Endorsement): Comprehensive coverage for the lender insuring against violation of covenants, encroachments of the main dwelling and association liens affecting priority of the loan. (Additional protection with Form 100 are:
Mechanics lien protection
(Requirements may be necessary)
Form 100.30 (Mineral): Coverage insuring against damage to existing improvements resulting from the exercise of the right to remove minerals from the surface.
Form 103.1 (Easement): Coverage insuring against loss or damage as the result of use or maintenance of the easement.
Form 115.1(Condominium): Coverage insuring the creation of the condominium estate is in accordance with the laws. That the covenants, conditions and restrictions are not violated, that a homeowner's assessment lien is subordinate to the lender's Deed of Trust, and also protection against common area encroachment.
Form 115.2 (P.U.D.): Coverage insuring against loss or damage due to violation of restrictive covenants, forfeiture or reversion provisions of restrictive covenants, assessments gaining priority over and insured mortgage, compelled removal of improvements due to encroachments.
Form 8.1 (Environmental Protection): Coverage insuring that no environmental lien has been filed either in the Clerk and Recorder's records or filed in the U.S. District Court.
When are property taxes due?
Property taxes are a lien on January 1st but not payable until February 15th.. They can be paid one of two ways:
1) One payment on or before April 30 or
2) Two payments -1st half by February 15th, and second half by June 15th
Taxes are prorated at closing.
What is "Power of Attorney?"
A "power of attorney" is a written instrument by which a person (the "principal") appoints another agent (the "attorney in fact") and confers upon the agent the power to perform certain specified acts on behalf of the principal.
A Power of Attorney:
Creates an agency relationship, with the giver of the power remaining the legal owner of any property involved
Can I write a personal check at closing?
All funds at closing must be in the form of a cashier's check, certified check or wire transfer . Colorado is a "good funds" state, therefore as an escrow agent, Equity Title can only accept "good funds" when closing a transaction. "Good funds" means the check is drawn on the bank's account, not on an individual's account.