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FAQs

Archer Land Title want's to make the best of your closing experience! Choose from the following for a detailed description of the process our customer service will work with you on:

• What is Title Insurance?
• Do I need Title Insurance?
• What is Title?
• What is Title Defect?
• What makes buying a home different from all other purchases?
• The lender already requires Title Insurance, won’t that protect me?
• The contract I signed makes the sale subject to title of the property being clean. Doesn't that protect me?

What is Title Insurance?

There are two types of Title Insurance: a lender’s policy, and an owner’s policy. The lender’s policy covers the amount of the loan and provides protection to the lender. The owner’s policy protects the landowner against any title loss covered in the policy. When you purchase a home, you are actually purchasing the legal rights to own, possess, use, control and dispose of the land as you see fit (in accordance with the law). The title on the property may be limited by rights and claims asserted by others; with a Title Insurance policy, you are protected against any title loss which ensures the value of the property. If a claim is made against the title, the title insurer must pay any and all costs associated with defense against the challenge, pursuant to the terms and conditions of the final title insurance policy.

Do I need Title Insurance?

Yes. Title Insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to the ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. Title Insurance indemnifies you and will pay the cost to defend against any covered claim.

What is Title?

Title is a collective term that makes up your legal rights to own, possess, use, control and dispose of land. Title takes into account all previous ownership, uses and transfers. In order to legally transfer real estate property, title must be determined as clear or free of defects or encumbrances.

What is Title Defect?

A title defect is something missing from the title, for example, an undisclosed heir from a previous owner who could make a claim on the land. An encumbrance is a claim made upon the land by someone other than the landowner, for instance, your local power company may have an easement for a power line that will serve your home. If you are borrowing money to purchase land, your lender will require your title to be cleared of any outstanding defect or encumbrance before the land is transferred.

What makes buying a home different from all other purchases?

No other property has a useful life that compares with that of land. Owners may change, but land goes on forever. Owners of goods may change their locations at will, but land is immovable, it lends itself to the absorption of innumerable rights. Over the ages, this so impressed lawyers and jurists that they formed a separate body of laws for land. These laws, creating many types of rights in land, are so numerous and complex it is impossible for there to be a mathematical certainty of ownership.

The lender already requires Title Insurance, won’t that protect me?

Not necessarily. There are two types of Title Insurance. Your lender likely will require that you purchase a Lender's Policy. This policy only insures that the financial institution has a valid, enforceable lien on the property. Most lenders require this type of insurance, and typically require the borrower to pay for it.

An Owner's Policy on the other hand is designed to protect you from title defects that existed prior to the issue date of your policy. Title troubles, such as improper estate proceedings or pending legal action, could put your equity at serious risk. If a valid claim is filed, in addition to financial loss up to the face amount of the policy, your owner's title policy covers the full cost of any legal defense of your title in accordance with the terms and conditions of the final policy.

The contract I signed makes the sale subject to title of the property being clean.
Doesn't that protect me?

If anything should happen to defeat the title, your cause of action would be against the seller, and his ability to pay. Attorney's fees and expenses would not be covered.