FAQs

What is title insurance?

Insurance such as car, life, health, etc. protects against potential future events and is paid for with monthly or annual premiums. A title policy insures against events that occurred in the past of the real property and the people who owned it, for a one-time premium paid at the close of the escrow.

Is title insurance required in NJ?

Title Insurance for Real Estate Purchases in New Jersey is not required by law. Still, it is highly recommended. A lender always requires a title insurance policy. Title Insurance protects both the owner(s), the borrower(s), and Lender if both owner and lender insurance have been purchased.

How long is a title insurance policy suitable for?

The lender’s title insurance policy stays until the mortgage is fully paid. The owner’s title insurance policy lasts if you or your heirs keep an interest in the property.

What are the main two types of title insurance?

There are two types of title insurance policies. The owner’s title insurance or Owner’s Policy protects the buyer, and the lender’s title insurance or Loan Policy covers the lender.

What are title fees?

Title insurance fees are the fees associated with searches and due diligence reports to ensure the property can be insure and is free of title defects; the title insurance premium to insure the property and the Settlement/Closing fee are part of these fees.

How much would my title insurance cover in the event of a title claim?

Title insurance policies and endorsement vary depending on the state in which your property is located. However, most title policies will only pay for claims up to the face value of your policy. The face value of your policy is the amount you paid for the property when purchased

What are the benefits of title insurance?

Title insurance protects against any claim against rightful ownership of a title. A forgery from a decade ago can be discovered tomorrow. A divorcee may have never notified his or her spouse to the sale of their property, so if the other party never agreed to the sale, he or she may still have rights to your new home. While investigators who check title records are professionals, people do make mistakes. Title insurance guarantees protection from threats to ownership should a claim occur. However, there are two different types of title insurance, and there is an important distinction between them.

I am refinancing. Do I need a new title policy?

When you refinance you are acquiring a new loan, even if you stay with your initial lender. Your lender will require title insurance to protect their investment in the property. Even if you recently purchased or refinanced your home, there may be some problems that could occur with the title. For example, you might have incurred a lien from a contractor who claims he has not been paid. Or you might have a judgment placed on your house due to unpaid taxes, homeowners’ association dues, or child support. The lender needs reassurance that the title to the property they are financing is clear. Banks Title Agency will clear the title from existing objections or encumbrances, and provide the title on your refinanced property in a timely manner.

What are recording fees?

Recording fees are the cost to record the Deed or Mortgage at the County Clerk/Register’s Office in in the county in which the property is located. This fee varies based on the type of instrument and number of pages.

Why should I care who is the title agent?

You should care as the title policy insures your property against ownership and title defects for the life of your ownership on the property. Often times, title issues are not discovered until the property is being sold, refinance or construction is being perform. Below are some examples.

A restriction on the land use is not discovered during the title search performed when the property is purchased but is discover when you are selling the property; this can cause you thousands of dollars or more depending on the type of restriction or can prevent you from developing the property and/or building the type of structure you want to build on the property. This can include, but not limited to an additional story on the house, a pool, a basketball/tennis court, a garage, etc

A Driveway easement is not discovered during the title search performed when the property is purchased. Once you move in you discover the driveway you thought belong to your property is shared with the neighbor or even worse, it belongs only to the neighbor.

The above samples show the importance and value of a good title agent.

What areas do you provide title services for?

We provide title insurance and closings services in all of New Jersey and New York.