Wimba Title Agency, LLC™ Insurance Solutions

Title searches, among other things, reveal the chain of ownership from the original property owner to the present property owner. Title insurance protects an owner’s legal title (ownership rights) to a property from defects in title that may arise from events that occurred before the property was purchased. It is the only type of insurance that protects from acts that already happened, rather than an act that may happen in the future. Some title issues that could potentially impact your ownership or use of the property included, but are not limited to, forged documents, claims to the property made by heirs or co-owners, undisclosed mortgages or liens against the property, encroachments, mistakes in recording of legal documents, fraud, etc.

An issue with title can impact your ownership of the property which can lead to financial loss. An owner’s policy protects your ownership of the property, thereby securing your investment against any potential title issues covered by your policy, up to its liability amount.

Refinance: When you purchased your property, you most likely also purchased title insurance to protect yourself (Owner’s Title Insurance Policy) and your lender (Loan Title Insurance Policy) from potential losses. When you refinance, (unless this was a CEMA transaction) your current loan is paid off and a new loan is obtained. A new loan title insurance policy is required for the new lender, who wants to be on the first lien position in case of the loan default.

New Construction: In most cases, there are many prior owners to unimproved land. Title insurance will uncover existing liens. A builder may have failed to pay subcontractors and suppliers which would result in the subcontractor or supplier placing a lien on the property. By purchasing an owner’s title policy, you are obtaining protection against this.

Sometimes referred to as a loan policy, this policy ONLY protects the lender’s interest in the property.  Lending institutions require a policy to protect their interests in the property. In case of foreclosure, lien priority determines the order in which creditors get paid. Depending on which state the property is located, some liens (i.e. property tax, HOA, and mechanic’s liens) can have priority over previously recorded liens. With a lender’s policy, the lender can ensure they are in first lien position therefore, protecting their interest.

The price of owner’s title insurance policy is usually based on the property’s purchase amount. It is a fee you pay once, at the time of closing, that ensures the entire time you, or your heirs own the property, your investment is protected. If you would like a title quote to provide an estimate of what your title policy would be, our Wimba staff would be happy to provide one to you.

If you have the settlement statement from the purchase of your property that shows an owner’s policy has already been paid for, or if you still have the owner’s policy from the purchase, you may be eligible for a discount, depending on the property’s location (state) and a few other criteria. Please ensure to provide all documentation as early in the process as you can as they must be received prior to closing so your policy premium is properly calculated for the settlement.

When all requirements listed on Schedule B-1 of the title commitment, provided by Wimba, are satisfied and all parties involved in the transaction are ready to close.