FAQ’s

If my lender requires that I purchase Lender’s title coverage, then why do I need an Owner’s title insurance policy?

Purchasers often ask why they need an Owner’s title insurance policy when the Lender’s policy should be enough. The Lender’s Policy only protects the Lender, and only for the life of the loan, consequently the policy expires when the loan is paid off. Conversely, the Owner’s policy protects the Purchaser’s interest in the property he receives, and that coverage continues for his lifetime. This is important because liability for title defects can survive through and even beyond the period of the Purchaser’s ownership. Therefore, for a one-time premium paid at the time of settlement, the Purchaser is protected against prior title defects, or claims made against his title, even after he sells the property or pays off the loan. We strongly recommend that Purchasers obtain their own title insurance policy to protect themselves as Lenders do.

Why does the lender have to have a new title insurance policy every time I do a transaction?

Lender’s title insurance policies insure the lender’s interest in the property up to the face amount of their loan. The policy is only applicable to the specific transaction, and it provides coverage for the mortgage lien and it protects against errors made in the title search connected with that transaction, as well as any pre-existing clouds on title. Therefore, each new lender will want a lender’s policy that is specific to their transaction.

Can I use a power of attorney (POA) for my closing?

YES, but you should review the following carefully:

  • Any POA must be reviewed and pre-approved by (i) OTT and, IF you are the purchaser, (ii) by your lender(s).
  • The review of the POA should be done as soon as possible in case the existing POA is not acceptable, prompting the need for a new POA to be drafted and circulated prior to closing.
  • The pre-approved ORIGINAL POA MUST be delivered to OTT at or before closing, as we must present the original POA at the courthouse for recordation.
  • A Special POA for the specific transaction is normally required in order to satisfy the title company insuring the transaction.
  • If a General POA is pre-approved by OTT for the transaction, we must collect and keep the ORIGINAL POA to be recorded at the courthouse. The original will be returned to you after recording at the courthouse, which may take a few weeks.
  • Please be sure that OTT has contact information for the person who will sign for you and be sure that person will attend closing. Also, it is wise to give OTT and the person signing for you a phone and fax number to reach you during closing for any last minute issues.
  • If you are the seller, be sure your agent or the person signing for you has the keys, garage door openers, any money due from you, etc., to deliver at closing.
  • If you are the purchaser, be sure you make arrangements to have your purchase money delivered to OTT at or before closing. Checks are to be made payable to OTT and must be a cashier, certified or teller check. Wired funds should be wired for arrival at OTT the day before closing; please note that wired funds coming from some source other than a bank (such as a brokerage account) often require three (3) days prior notice. OTT should be informed of any wire expected to be sent to us and the wire should contain a reference to your specific case.

Can I have my closing funds wired to your account? Do you have wiring instructions?

OTT will accept wired funds. These funds MUST be received by OTT prior to closing. The closing cannot be finalized until all funds are received, which could conceivably delay delivery of the keys to your new home. We suggest that you arrange to have funds wired for arrival at OTT the day before closing. Please note that wired funds coming from someone other than a bank (such as a brokerage account) often require up to three (3) days prior notice to ensure that the wire gets sent out. Also, most companies that wire funds for you will require written authorization before sending the wire out. Be sure to contact your bank or brokerage well ahead of time to make the necessary arrangements.

What do I need to bring to closing?

You will need to bring a driver’s license or other government-issued photo identification, your original hazard insurance policy and a check for any amounts due.

Can I write personal check for my settlement funds due?

No, all funds must be in the form of a certified check or cashier’s check payable to Old Towne Title Company.

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