“Why do I need title insurance?”

Title insurance protects what may be most important and largest investment you'll ever make.  The purchase of real estate.  It protects the lender and/or owner against loss due to unknown title defects or matters which may exist but go undetected at the time of sale.  Although a problem with title may be relatively rare, when there is one it can cause great financial hardship upon the homeowner that doesn't have title insurance.  The title insurance company becomes an indispensable partner in the satisfactory resolution any such matters.  We highly recomend title insurance be obtained. 

There are two types of title insurance policies available.

Loan or Mortgage Policy -  If a bank or lending institution is involved they require their interest to be protected by title insurance.  It covers the lender's interest, not the owner's.  It is only in effect during the term of the loan and up to the amount of the loan itself.

Owner's or Fee Policy -  For a one time premium it covers the interest of the owner of the property from the time of purchase forward.  Even after the property is sold the agency/attorney is in the postion of having to defend title if any problems arise as to said title in the future.  

"When and why do I need a title search?"

 EVERY time you buy or refinance a property a title search is needed.  Any potential problems are identified and dealt with before closing.  Compared to the headaches and aggravation it can save you in the future it's well worth the relatively small cost of a title search. A title search is the process by which we research the title history of the property to establish clear and marketable title.  In Connecticut we are required to go back at least 40 years to an arm's length transaction (Warranty Deed).   We confirm the property was properly conveyed between all owners in the chain of title (ownership) without any breaks in ownership or outstanding interests. We also are looking for unsatisfied judgments and liens (such as mortgages), easements, restrictons or any other existing conditions that may effect the premises as apears of record. We confirm that no other individual or entity has any claim against the interest in the property.  Our services are normally procured by attorneys and title insurance companies as part of their services to the consumer (you).



“Do I need an attorney to handle my closing?”

In Connecticut, attorneys, not title companies or agents, customarily close real estate transactions. In fact, title insurance companies and lenders in Connecticut actually require an attorney to be involved in the transaction.  The process of purchasing real estate can be very complicated, confusing and stressful to those who have no background or experience in such matters.  An attorney will write and/or review the contracts and agreements, obtain the title search and insurance, review closing documents, and represent you at the closing.  They will also be obligated to represent you if there any problems with the title in the future.  Their services can be well worth the fee they charge.  It is highly recommended that you consult an attorney when purchasing real estate.