Frequently Asked Questions
What is title?
Simply stated, the title to a piece of property is the evidence that the owner is in lawful possession of that property.
What is Title Insurance?
Title Insurance protects real estate owners and lenders against any property loss or damage they might experience because of liens, encumbrances or defects in the title to the property. Each Title Insurance policy is subject to specific terms, conditions and exclusions.
Who needs Title Insurance?
Purchasers and lenders need Title Insurance in order to be insured against various possible title defects. The buyer, seller and lender all benefit from the issuance of Title Insurance.
How does Title Insurance differ from other insurance?
Insurance such as car, life, health insurance and more, protects you against potential future events and is paid for through monthly or annual premiums. A title policy insures against events that may have occurred in the past and is obtained through a one-time premium paid at closing.
What does Title Insurance cover?
Title Insurance protects against claims from defects. Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These hidden “defects” are dangerous because you may not learn of them for many months or years. These defects could force you to spend substantial amounts of money on a legal defense, and can still result in the loss of your property. An example of defects include another person claiming an ownership interest, improperly recorded documents, fraud, forgery, liens, encroachments, easements and other items that are specified in the actual policy.
What if I want to learn more?
Contact First Jersey Title Service to speak with a representative.