DETAILS… DETAILS… TELL ME ABOUT TITLE INSURANCE (Continued)

At closing, we collect signatures and point out the key terms of documents. Occasionally, documents are incorrect. Minor errors such as misspellings can usually be corrected with minimal delay, but more significant errors may require that the closing be rescheduled. If you want to review closing documents in detail before signing, you should contact your closer (or your lender) in advance of closing and request copies.

We also receive and disburse funds at closing. All disbursements are in accordance with the settlement statement. The settlement statement is circulated before closing so that everyone involved in the transaction has an opportunity to review the flow of funds for accuracy and completeness.

You can and should ask questions at closing if you do not understand key terms. But, the closing room is not the place for matters of due diligence. That is, it is not the place to consider for the first time the possible advantages of an adjustable rate loan over a fixed rate loan. On the other hand, you should make sure that the fixed rate loan you decided on includes all of the terms to which you agreed.

POLICY ENDORSEMENTS

Owner and loan policies frequently include endorsements that expand the scope of policy coverage. For example, endorsing your owner’s policy to provide “extended coverage” (OEC) expands the policy to insure against adverse survey matters such as encroachments onto the property and also claims of non-payment by construction laborers or material suppliers (mechanics’ liens).

Some endorsements are issued on nearly every transaction – most buyers want OEC and most lenders want environmental lien coverage. Other endorsements arise by circumstance. For example, if a prior owner has reserved rights to sub-surface minerals, a buyer or a lender may request endorsement coverage protecting against loss arising from damage to the surface structures in the event of mineral extraction. Endorsement rates may be fixed or tied to the premium rate. We may decline to issue an endorsement if we determine that the risk we are being asked to assume is too high, or we may make issuance of an endorsement contingent upon receipt of additional documents, information or assurances.

• Read More About Common Title Policy Endorsements