Mary-Beth Windau

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Mary-Beth Windau
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Sandusky
Title Specialist
Hartung Title Agency, Inc.
327 E. Washington St.
Sandusky
OH
44870

What should I look for when reading my commitment for title insurance?

You will be interested primarily in the extent of your ownership rights. This means you will want to review the ownership interest in the property you will be buying along with any claims, restrictions or interests of other people involved in the property. The report will note in a statement of vesting the degree, quantity, nature and extent of the owner’s interest in real property. The most common form of interest is “fee simple”, which is absolute ownership of land, giving you unrestricted powers to use and dispose of the property.

What are “exceptions to coverage” under a title report?

Liens, restrictions and interest of others which are being excluded from coverage will be listed numerically as “exceptions” in the title commitment. These may be claims by creditors who have liens or liens for payment of taxes or assessments. There may also be recorded restrictions which have been placed in a prior deed of record that create covenants, conditions, and restrictions (CC & R). Finally, interest of third parties are not uncommon and may include easements given by a prior owner which limits your use of the property.

Why Title Insurance is Necessary on a Refinance Transaction

Although an Owner’s Policy of Title Insurance lasts for as long as the homebuyers own the property, a Loan Policy protects the lender’s investment only for that particular loan. When refinancing, homeowners obtain a new loan and expose their new refinance lender to new risks. Title risks for refinances include other mortgages, mechanics’ liens, liens from unpaid taxes, divorce, bankruptcy, etc. The lender (even if the same lender is used) will require a new title insurance policy to protect against those risks.

Mary-Beth Windau
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Mary-Beth Windau
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