FAQ Links Online Documents History Of Interest Rates Newsletter Top 30 Lenders   Our dedication to pleasing our customers is rewarded by their happiness and satisfaction; to this end we will always provide a better way to close.   Frequently Asked Questions   What is title insurance? A title insurance policy protects the insured against any loss suffered as a result of the title to land not being as represented in the policy. It is a one time premium insuring protection as long as the Buyer owns the property. The seller provides an Owner's Title Insurance Policy to the buyer; the buyer provides a Lender's Title Insurance Policy to the lender. Unlike other kinds of insurance, title insurance insures against past events, affecting the rights to real property, rather than unforeseen future events.   Why is title insurance important? Title insurance enhances the value of your property. Problems with title can limit the use and enjoyment of your property and you may incur financial loss. For example, a hidden mistake in a prior deed, will or mortgage, may give another party a valid claim against your property. Having title insurance can save you time, money, trouble and secure your home. Title insurance provides a "safety fence" around your property.   How much is title insurance? Unlike the annual premiums of most other forms of insurance, you pay a small, one-time premium for title insurance. The premium will depend on the type of coverage you and/or your lender request. In cases where discounts are available, Pacific Northwest Title will always quote the lowest rate.   Who is covered? There are two basic types of title insurance policies: an Owner's Policy and a Lender's Policy. Owner's Policy: Owner's title insurance, which the seller typically pays for at closing, is issued generally for the amount of the purchase price. It protects the purchaser and the purchaser's heirs as long as they own the property. Lender's Policy: Most lenders require title insurance as security for their investment in the property. The borrower typically pays for the Lender's Policy, which is issued for the loan amount.   How does a title company eliminate risks? Pacific Northwest Title conducts an examination of the public records looking for matters affecting the title to the real property. These records include: Deeds Civil and probate court records Easements Maintenance agreements Assessments Debts and other burdens Restrictions on the property An important part of the title insurance process is eliminating risk prior to insuring, thereby reducing the possibly of claim or loss. However, even the most careful examination cannot disclose "hidden hazards" to title.   What are some hidden hazards? Hidden hazards can emerge after completion of a real estate purchase creating an unpleasant and sometimes costly surprise. Some examples are: Forged deeds, releases or wills. Undisclosed heirs claiming an interest in the property. Documents executed under an expired or fabricated power of attorney. Mistakes made in the public record Deeds executed by persons of unsound mind Gaps in the "chain of title" Invalid divorces Fraud While many of these hidden hazards might not be revealed as a result of a routine title examination, they are covered under the terms of a title insurance policy. Pacific Northwest Title will defend the property owner against an attack of their rights and cover the cost of any settlement, including attorney fees.   What is a Preliminary Title Commitment/Report? Based on the results of the title examination, Pacific Northwest Title will issue a Preliminary Title Commitment for Title Insurance. The title commitment will include the following: The names of the buyers and sellers The type and amounts of coverage to be issued The legal description of the property A summary of the condition of the title including any easements, liens, judgments and existing loans A sketch (map) of the property Copies of pertinent documents disclosed in the title report An agreement to issue a Title Insurance Policy upon payment of the premium   What are the exceptions to the title policy? The following are not covered by the title insurance: Taxes or assessments not shown by the public record Errors due to poor surveying, such as faulty boundary lines Limitations on land use, such as laws against farm animals Exceptions may also be added to your policy. Examples include: Easements, right of way and other legal obligations noted in the deed or other public records Restrictive covenants or agreements limiting uses to your property   What is closing or Escrow? Closing (also referred to as "settlement" or "escrow" in many parts of the country) is the process whereby an impartial third party, such as an attorney, an escrow company or title company, is entrusted with the job of seeing the transfer of ownership from the Seller to the Buyer takes place according to the terms of the written contract agreed upon by all parties involved. The closing agent keeps or holds any funds or documents safely until all the details have been settled and disburses them to the proper parties at the proper time. At the actual time of the closing, all the parties come together to sign their appropriate documents. The seller will be asked to provide clear title to the property and the buyer will be asked to provide the funds needed o close the sale. If there is a mortgage loan involved, the closing of the mortgage takes place at this time. Anyone involved in the transaction may "open escrow". Generally, the real estate agent takes the initiative and opens escrow. In a for-sale-by-owner transactions, in which no agent is involved, either the buyer of the seller or both may open escrow.   What happens if I need to extend the closing date? If a party need to extend the closing date of the escrow, all parties must sign and agree to an Addendum or Extension of the original Purchase and Sale Agreement. The extension must not interfere with the lender's obligation for a closing date.   How can the buyer and seller determine their closing costs before the actual closing date? When the purchaser applies for a loan, a Good Faith Estimate is generated by the lender. This gives an "estimate" of closing costs for the buyer. One business day before the actual closing the parties review a copy of the HUD-1 Settlement Statement. The HUD-1 statement will list various fees, depending on the transaction: Sales commission Loan origination fee Loan discount points Appraisal Credit report Assumption Fee Prepaid interest Mortgage Insurance premium Homeowner's Insurance premium (first year) Reserve account for taxes and insurance Recording fees Transfer Tax Property Survey fee Inspection fee Homeowner's Association Dues (if applicable) Any other costs specific to the particular transaction If there isn't a loan, the closing agent will give the buyer a settlement or closing statement to review prior to closing.   Can I request Pacific Northwest Title? Yes! At the time the Purchase and Sale is prepared or when refinancing an existing loan, instruct your Real Estate Agent or Loan Officer to order title insurance from Pacific Northwest Title.

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