Frequently Asked Questions

Most definitely!

Title insurance is a means of protecting yourself from financial loss in the event that problems develop regarding the rights to ownership of your property. There may be hidden title defects that even the most careful title search will not reveal. In addition to protection from financial loss, title insurance pays the cost of defending against any covered claim.

  • Someone has presented himself as the true owner of the land, but actually is not.
  • There are forged title documents.
  • There are people who claim to have "power of attorney" who don't really have the legal authority to act for another person.
  • There are deeds delivered after the death of one of the people involved, without the pre-written consent of the deceased.
  • It is discovered that a will isn't legally valid.
  • A deed is to, or from, a defunct corporation.
  • There are heirs missing or not disclosed in title documentation.
  • Wills were misinterpreted.
  • Deeds were made by people of unsound mind.
  • Deeds were made by minors.
  • Deeds were made by non-citizens.
  • Erroneous reports were furnished by tax officials.
  • Estates were executed with key people absent.
  • There is an undisclosed divorce of a spouse who claims to be an heir.
  • There is a spouse who is supposedly, but not legally, divorced from someone involved in the proceedings.
  • Children were born or adopted after the date of a will that involved the property.
  • Surviving children were omitted from a will that involved the property.
  • Mistakes were made in recording legal documents.
  • Title records were falsified.
  • Creditors make claims against a property that was sold by heirs or other people named in a will.
  • Deeds were made under duress as a last option to foreclosure.
  • Easements (limited rights for other parties to use the land) exist that were not located by a survey.
  • A deed incorrectly identifies public property as private property.
  • There are errors in tax records.
  • There are deeds from a bigamous couple.
  • Representations on legal documents (e.g., Notary seals) are invalid or incorrect.
  • The property was condemned, but there is no official record of the condemnation.

Not necessarily. There are two types of title insurance.

A Lender's Policy insures that your lender has a valid 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, protects your interest in the property. 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 cost of legal defense.

Yes. There are three different types of Title Insurance: the Lender's Policy, the Standard Owner's Policy, and the Owner's Enhanced Policy.

Lender's Coverage is required by all corporate lenders as a condition of the purchaser's loan. This covers only the lender for the amount of the loan they are making to a borrower. The Lender's Policy that the lender is provided with is the Standard ALTA 1992 Loan Policy. It provides coverage to the Lender against such title encumbrances as fraud in connection with the execution of document, incorrect representation of the marital status of grantors, wills not properly probated, and many other circumstances that might jeopardize the Lender's security in the property.

The Standard ALTA 1992 Owner's Policy protects you as the owner of real property against fraudulently executed documents, incorrect representations and improperly probated wills as well as any unsatisfied claims that may not appear in the County land records.

The Owner's Enhanced Policy covers you, the owner, against all that is included in a standard ALTA 1992 policy but with additional and enhanced coverage. Subject to limitations, some of the benefits of an Enhanced Policy include:

  • Mechanic's lien coverage is provided for work done prior to the date of your policy.
  • Zoning coverage is now provided, insuring that your land is properly zoned for a single-family residence.
  • Subdivision coverage is now provided in the event your land is a portion of an improperly created subdivision.
  • Coverage is provided if you, as the owner, are forced to remove an existing structure, other than a boundary wall or fence, due to a previous owner's failure to obtain the necessary building permit.
  • Coverage is provided if an adjacent builder builds onto the homeowner's property without permission.
  • Coverage is provided for forgeries affecting your ownership after the date that your title insurance policy is issued.

Title insurance on a refinance assures your lender that you actually own the property. It insures that no one else has a preemptive position in front of the lender, and if someone does, it pays for the lender's losses. Your original lender's title insurance policy only provides coverage for the original first loan.

No. A new owner's policy is not required when refinancing. If a new appraisal is performed and the property is worth more than it was when the owner's policy was issued, your current owner's policy can be updated. The new owner's policy can be issued for the current fair market value of the property and you only pay the difference in premium costs for the increase in coverage.

Even if your home itself hasn't had previous owners, the land that it stands on has. Your policy insures you as the owner of a specific piece of property. It clarifies the property rights and insures that your builder hasn't used it as collateral on another loan, that there are no unidentified easements affecting your property and that no problems will surface to hurt you later.

You don't pay monthly or annual premiums to keep your title insurance. It is a one-time only expense, paid when you purchase your home. Yet it continues to provide complete coverage for as long as you own the property. The one-time premium is directly related to the value of your property and regulated by the State of Ohio. Please contact Ace Title for detail.

A title company oversees the interests of all parties, consisting of buyers, sellers, lenders, real estate agents and coordinates the transfer of money and property at the time of closing. Prior to settlement the title company will research the ownership history of the property (which is called the title search) to determine that the title is free of any liens or claims. At the settlement table, the title company collects and distributes funds from the transaction, transfers ownership of the property, and issues title insurance.

Yes! You have the right to choose whatever company you'd like. Although many people just rely on their attorney, mortgage lender or real estate agent to pick a title company for them, ultimately the decision is yours. You need to make sure that all the parties are aware of your choice of Title Company before signing a purchase agreement.

Fees may vary from company to company. All reputable companies will supply you with a good faith estimate of their fees and the cost of the insurance prior to settlement.

Ace Title's fees are very competitive and it offers free estimate for your transaction. Also, Ace Title has no hidden fees so there will be no surprise for you at closing.

Location surveys are necessary on all financed purchases. The title company must order the survey through a licensed Surveyor in advance of the settlement to make sure there are no discrepancies or structures on the property which appear to encroach over building restriction lines, property lines, or drainage and utility easements.

Boundary surveys are much more involved, more time consuming and much more expensive. They are not required by banks unless the property is being rezoned or subdivided, or there's a boundary problem.

Lenders normally request closing protection coverage. It is a document issued by title insurance underwriters that sets forth an underwriter's responsibility for negligence, fraud and errors in closings performed by agents. It indemnifies the Lender against loss or damage arising from a breach of certain fiduciary duties owed by the Licensed Agent or anyone acting of behalf of the Licensed Agent.

Ace Title offers one-to-one free consultation. Please contact Ace Title at 877-223-7880 to schedule your appointment.