FAQ

Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.

There are two main types of policies – owner and lender. Just as lenders require fire insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance [a loan policy] to protect their interest in the collateral of loans secured by real estate.

Some mortgage lenders, especially non-institutional lenders, may not require title insurance.

Buyers purchasing properties for cash or with a mortgage lender often want title insurance [an owner policy] as well. A loan policy provides no coverage or benefit for the buyer/owner and so the decision to purchase an owner policy is independent of the lender's decision to require a loan policy.

Typically, when a buyer goes into contract to purchase a piece of real estate they will order title insurance from a title agency like Red Stone either directly or through their attorney.

Red Stone will then perform all the necessary searches of public records available for the block and lot being purchased as well as looking into the sellers for records of judgments or liens. these documents are all collected into an Abstract.

Red Stone will prepare pro- forma that is proofed by our skilled attorneys that highlights any potential issues and suggestions as to how they can be resolved. Once all the documents have been review by all parties and an agreement as been reached a closing will be scheduled to finalize the transaction.

At the closing, Red Stone will assist to make sure all the T's are crossed and I's are dotted. Once the closing is complete Red Stone will issue a title insurance policy, disburse any funds held in escrow and record all the pertinent documents with the applicable recording office.