Policies

Question 1

Title Insurance Coverage

Answer 1

Indemnity for property defects, liens, or encumbrances

Question 2

Owners Policy

Answer 2

Good and marketable title

Question 3

Lenders Policy

Answer 3

Insures priority and validity of lender’s lien on property

Question 4

Title Search

Answer 4

Search of the public records to develop chain of title and determine which documents affect it

Question 5

Abstract of Title

Answer 5

History of title in abbreviated form for title examiner

Question 6

Title Examination

Answer 6

Direct, abstract/title plant, combined methods

Question 7

Title Endorsement

Answer 7

Addition to or limitation of title insurance (Schedule A)

Question 8

Title Exceptions

Answer 8

Exceptions to coverage of policy (Schedule B)

Question 9

“Title”

Answer 9

Full legal ownership

Question 10

PIN

Answer 10

Permanent index number (township, section, block, parcel)

Question 11

Title Commitment

Answer 11

Discloses info drawn from the examining process

Question 12

Schedule A

Answer 12

Effective date, buyer, lender, vesting, purchase price, legal description

Question 13

Schedule B

Answer 13

Condition of the title, recorded matters that may restrict use

Question 14

Closing Disclosure

Answer 14

5-page form provided by lender that outlines final terms and cost of mortgage / other closing costs; replaced the HUD-1 settlement statement; must be provided at least 3 days before close

Question 15

Loan Estimate

Answer 15

3-page doc provided after app submitted presenting estimated loan terms, projected payments, closing costs