Title and Clearance
Title refers to the legal ownership rights to a property, which may include limitations on those rights
A title search is a deep dive into public records to make sure there are no hidden issues—like unpaid taxes, old liens, or ownership disputes—that could affect the owner’s rights to the property. If something does pop up, we can often handle it behind the scenes. Occasionally, we might need a bit more information. Once everything checks out, the title insurance underwriter issues a title insurance policy.
Title insurance protects against potential problems that were not revealed in the title search, such as liens, encumbrances, or defects in the title. There are two types of title insurance policies, owner’s and lender’s. See our article, “What is Title Insurance,” for details.
The cost of a title insurance policy varies based on the state where the property is located, the value of the property, and the policy type. For example, the cost of owner’s title insurance is typically between .5 and 1% of the property’s purchase price. It is a one-time payment that offers protection for as long as the owners or their heirs own the property. The cost of lender’s title insurance is based on a percentage of the amount of the mortgage loan. The lender’s policy is also a one-time payment.
Owner’s title insurance lasts as long as the owners or their heirs own the property. Lender’s title insurance lasts until the loan is paid and the mortgage is released.
If you are an employee of Rate, Inc., place an order through our Encompass integration. If this is not applicable, use our Order Title feature. You may also email a request to orders@ratetitleagency.com and include as many of the transaction details as possible:
- Transaction type
- Buyer/borrower full names and contact information
- Seller full names and contact information
- Property address
- Purchase price
- Loan amount
- Lender name and contact information
- Other parties to the real estate transaction such as attorneys and real estate agents.
Submit a tract search order on our Order Title page. If you have questions, email orders@ratetitleagency.com.
A Closing Protection Letter (CPL) is an indemnity agreement (i.e., a promise to pay for loss or damage) issued by a title insurance underwriter to a lender. It protects the lender against losses caused by misconduct or negligence by the closing agent during a real estate transaction. CPLs are also known as Closing Service Letters.
If a credit report fails to show a lien, that does not mean the lien no longer affects the property in question. For the lien to be removed, provide a release or discharge of mortgage or a copy of the subsequently issued title insurance policy.
If a lender or other lien holder fails to record a release of a paid-off lien, the lien will be reflected on a title report. Practices vary by state. For example, in Illinois the statute of limitations on a mortgage lien is either 30 or 50 years depending on the circumstances, so an “old mortgage” that is 15 years old is not old! (Most states have similar statutes and time frames.) To remove liens from prior owners, Rate Title Agency will need to review the HUD, Closing Disclosure form, or Owner’s Policy from the purchase. To remove liens from the current owner, we will need to review a HUD, Closing Disclosure form, Loan Policy, or other substantial evidence.
Closing and Settlement
Escrow is a legal arrangement where a neutral third party, the escrow agent (typically the title company) holds funds (e.g., earnest money, down payment, or closing costs) and documents until all conditions of the sale are met, at which time the escrow agent disburses the funds to the proper parties.
Your real estate closing, or settlement as it’s called in some states, is the final step in buying or selling property: All the documents are signed, funds are distributed, and ownership (“title”) officially transfers from the seller to the buyer. It’s also when the new buyer receives the keys and the deal becomes official!
For the fastest closing confirmation possible, please use our online form to request your closing. You can also email schedule@ratetitleagency.com with any schedule related questions.
In most states, the limit for personal checks is $5,000.00, but it can vary. Contact our Closing Department for confirmation before writing a personal check. For non-investment property we can accept Certified or Cashier’s checks up to $49,999.99. For investment properties, all funds must be wired if Rate Title is sending the payoff on the same day. All amounts over $50,000.00 must be wired.
You do not! In today’s digital era, we have options for our borrowers to close their loans in the most convenient way possible. First and foremost, we can close eligible transactions digitally through our e-Close platform, allowing borrowers to close whenever and wherever they prefer. Second, we can send a mobile notary to a borrower’s home, office, local coffee shop, or any reasonable location at no additional charge. If borrowers wish, they are always welcome to close their loan in our Chicago office.
Email your loan documents to docs@ratetitleagency.com.
Contact Us
Questions about your order or your upcoming closing? Our dedicated Customer Success Team is here to help. From fundamental questions to last-minute closing emergencies, our team will find the answers you need.
