So title insurance is issued based on the legal description of a property and its chain of title. Lenders coverage protects their financial interest in the loan. Owners coverage covers the owners purchase price of the transaction. Once a policy is issued it is referenced by address with the title company that issued the policy. Often times new owners and lenders policies are written on the company that last issued the policy. There are a lot of rules surrounding what is known as a resting point on title. The easiest way to search a title is to move forward from the date of last issue of either or both a loan and or owners policy was issued. In a cash transaction the policy is effective on the date and time the deed is recorded in the registry. On a mortgage (purchase or refi) the policy is effective on the date and time the mortgage is recorded.
All Title Insurance Companies maintain databases title companies and real estate attorneys can search to find back policies. Your client should reach out to a local title company to find out when the last policy was written and who it covered. All they do is search by property address. Now there is another question that comes to mind here.
Was this a refinance or a purchase? Most people will buy and owners policy at the time they buy a house. On subsequent transactions (refinances during their ownership) they only must buy a lenders policy. It is uncommon for homeowners policy’s to be written on refinances. Lastly, there is nothing in the Lenders policy that would be helpful to the buyer.
Bottom line, go ask a local title company if they can tell you when the last time a title policy was written on the property. Then ask if they see any history of an owners policy in their name. They will be billed, but the borrower will have an answer to their question.
BTW, signers are not you’re r clients. The signing services, title companies and attorneys are. The title companies, real estate attorneys mostly represent the lender. From that perspective, your ultimate client is the lender.
I hope this information is helpful. If anyone has questions, I don’t mind answering those I can. |
