ATV Venture Title, LLC

Understanding Title Insurance

Title insurance is a form of indemnity insurance that protects lenders and homebuyers from financial loss sustained from defects in a title to a property. The most common type of title insurance is lender's title insurance, which the borrower purchases to protect the lender. Owner's title insurance, which is often paid for by the seller to protect the buyer's equity in the property, is available separately.

Why Do You Need Title Insurance?

When you purchase a home, you expect to enjoy certain benefits from ownership. You expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan.

Title insurance is designed to protect you against these risks:

• Errors or omissions in deeds
• Mistakes in examining records
• Forgery and fraud
• Undisclosed heirs claiming ownership
• Unpaid taxes, liens, or judgments
• Invalid or missing wills
• Easements or boundary disputes
• Claims from previous owners

How Title Insurance Works

Unlike other types of insurance that protect against future events, title insurance protects you against claims for past occurrences. Before issuing a title insurance policy, the title company conducts an extensive search of public records to identify any defects in the title. This process, called a title search, examines:

• Deeds and mortgages
• Wills and divorce decrees
• Court judgments
• Tax records
• Other relevant documents

Two Types of Title Insurance Policies

Lender's Policy (Loan Policy): This policy protects the lender's interest in the property. It's usually required by the lender and lasts until the mortgage is paid off. The coverage amount decreases as you pay down your loan and eventually disappears when the mortgage is fully paid.

Owner's Policy: This policy protects your investment in the property. It's purchased for a one-time fee at closing and lasts for as long as you or your heirs have an interest in the property. The coverage amount is typically equal to the purchase price of the home.

What Does Title Insurance Cover?

Title insurance protects you from financial loss and related legal expenses in the event someone asserts a claim against your title as covered by the terms of your policy. Covered risks may include:

• Someone else claiming ownership of your property
• Improperly recorded documents
• Fraud or forgery of title documents
• Liens for unpaid property taxes or HOA dues
• Outstanding judgments or tax liens against previous owners
• Encroachments or easements that weren't disclosed
• Errors in the public record

The Title Insurance Process

When you're buying a home, the title insurance process typically follows these steps:

1. Title Search: A title professional searches public records to verify the seller's right to transfer ownership and to discover any claims or defects.
2. Title Examination: The title professional reviews the search results to identify any issues that need to be resolved before closing.
3. Clearing Title Issues: Any problems discovered during the examination are resolved before closing. This might include paying off liens, correcting errors in documents, or obtaining releases.
4. Policy Issuance: Once the title is cleared, the title insurance policy is issued at closing, protecting you from covered risks.

The Cost of Title Insurance

Title insurance is a one-time premium paid at closing. The cost varies by state and by the price of your home, but it's typically a small percentage of the purchase price. Unlike other types of insurance, you don't pay monthly or annual premiums – just a single payment at closing that provides coverage for as long as you own the property.

In North Carolina, title insurance rates are regulated by the state, ensuring fair and consistent pricing across providers.

Why Choose ATV Venture Title?

At ATV Venture Title, we understand that buying or selling property is one of the most significant financial transactions you'll make. Our experienced team provides:

• Thorough title searches using the latest technology
• Fast, efficient processing of your transaction
• Clear communication throughout the closing process
• Expert guidance on title-related questions
• Professional service backed by decades of industry experience