Title Services

There are two types of title insurance policies: an owners’ policy and lender policy. The policy holder is protected against financial loss if challenges to title or title defects occur.

All lenders will require a lender title insurance policy to be purchased by the buyer. Rates for this type of policy are calculated at a different rate than an owners policy.

Borrowers will have the option to purchase title insurance to protect their interests. The policy is paid one time at closing and takes effect the date and time of deed recording. The title policy term lasts as long as the purchaser owns the property.

The Settlement Process

Once our office receives a copy of the ratified contract, we will start preparing for settlement. This includes conducting a title search. A title search involves reviewing all public records in relation to a specific property. The purpose is to determine if the title is marketable to ensure the property is free and clear of liens or pending lawsuit. One of our attorneys’ will review the title search to ensure it is accurate. Then, the title insurance commitment is issued.

Settlement will be scheduled in accordance to the contact and held at our office located in either Bel Air or Belcamp, Maryland. Pre-signing accommodations are available for sellers.

What to Expect?

At closing, you will review and sign, among other documents, a closing disclosure, promissory note, and deed of trust. The closing disclosure is a form the provides the final details of your loan. The closing disclosure is balanced between the mortgage company and the title company prior to settlement, and by law, they buyer must receive a copy of the closing disclosure from the lender three days prior to closing.

A promissory note is the agreement wherein you promise to repay to the lender the monies you are borrowing. The promissory note explains how your loan is to be repaid, including terms such as your interest rate, monthly payment amount and length of time allowed for repayment.

The deed of trust or trust deed is a legal instrument that is used to create a security interest in real estate property wherein legal title in real property is transferred to a trustee. The trustee then holds the title as security for a loan between a borrower and lender.

The money required for settlement will be collected and held in an escrow account. Following settlement, funds will be distributed accordingly.

First-Time Homebuyers Tax Credit

First-Time Homebuyers, in the State of Maryland, are eligible for a transfer tax exemption. For title purposes, a first-time home buyer means an individual who has never owned residential real property in the State and who will occupy the property as his or her principal residence.

A title search or property title search is the process of retrieving documents evidencing events in the history of a piece of real property, to determine relevant interests in and regulations concerning that property.

In the case of a prospective purchase, a title search is performed primarily to answer three questions regarding a property on the market:

• Does the seller have a saleable and marketable interest in the property?

• What kind of restrictions or allowances pertain to the use of the land? These would include real covenants, easements and other equitable servitudes.

• Do any liens exist on the property that need to be paid off at closing? These would include mortgages, back taxes, mechanic’s liens, and other assessments.

A title search is also performed when an owner wishes to mortgage property and the bank requires the owner to insure this transaction.

If a power of attorney is anticipated in a transaction, it is best to consult with the title company as soon as possible to ensure all documents are drafted accordingly for a timely settlement. For a buyer using a power of attorney, the lender must first review and approve both the use of a power of attorney and the verbiage used in the power of attorney.