Posted on: 12th Mar, 2007 07:04 pm
DIFFERENCE BETWEEN TITLE AND FINAL TITLE POLICY
Hi VenkaT,
Welcome to the forums.
If you are looking to buy a home with mortgage or if you are simply taking out a home loan, then prior to the settlement, the lender or the mortgage company would like to examine your property-title. They would like to check if your title is free from defects just to make sure that there are no liens against it.
In most cases, the lender or the company appoints a title company to conduct a title search on your property. After the search is over, the title company issues title insurance policies for the buyer as well as the lender.
Now at the time of closing, when you will be signing legal documents, the title company officials will be called forth to recheck all necessary legal documents.
The title company will then record the documents to ensure that the title to your property is in your name only. This kind of rechecking is done so that if necessary, after making the changes, the final title policy is issued. So, the final title policy is a modification of the title policy issued during the loan process.
Thanks,
Sara
Welcome to the forums.
If you are looking to buy a home with mortgage or if you are simply taking out a home loan, then prior to the settlement, the lender or the mortgage company would like to examine your property-title. They would like to check if your title is free from defects just to make sure that there are no liens against it.
In most cases, the lender or the company appoints a title company to conduct a title search on your property. After the search is over, the title company issues title insurance policies for the buyer as well as the lender.
Now at the time of closing, when you will be signing legal documents, the title company officials will be called forth to recheck all necessary legal documents.
The title company will then record the documents to ensure that the title to your property is in your name only. This kind of rechecking is done so that if necessary, after making the changes, the final title policy is issued. So, the final title policy is a modification of the title policy issued during the loan process.
Thanks,
Sara