Frequently Asked Title Insurance Questions

What is title insurance?
Title insurance protects property owners from losses that might occur due to questions surrounding the property’s ownership or claims that are a result of unresolved issues. Title insurance is a standard part of many common real estate transactions in Louisiana. Title insurance offers protection in the event that the owner’s claim to the property is disputed, that a previously unknown lien is unearthed, or that another dispute arises. Title insurance saves property owners and those in the real estate industry the cost, hassle, and aggravation associated with title defects and also protects them from losing the right to their property.
How much does title insurance cost?
Title insurance is a one-time fee that usually costs less than one percent of the property’s selling value.
What are the different types of title insurance?
Title insurance is often classified in terms of whom the policy protects. There is lender’s insurance, which protects the lender from disputes surrounding the title, and owner’s insurance, which directly protects the owner of the property.
What is a title search, and what do title searches reveal?
A title search occurs when a title professional refers to ownership documentation in an attempt to discover any defects or previously unknown issues to the property title that must be cleared before the transfer of property. Unpaid taxes or bills, a claim on the property, or any easement, ordinance, bankruptcy proceeding, mortgage, or CC&R can all result in a “title defect,” which must be addressed before the sale of the property.
Why do I need title insurance after a title search has been made? Shouldn’t that protect me?
There are some issues that no title search, no matter how thorough, would be able to uncover. Such an issue could potentially result in major financial loss to those who have a stake in the property, such as the owner or mortgage lender, if it is discovered.
What is a HUD-1?
The HUD-1 is a closing form that is used during settlements. It contains information about the closing costs associated with a particular transaction and indicates which parties are responsible for which costs.
What do I do when a title search indicates a title defect?
Usually, when a defect is discovered, it must be corrected before the transaction can proceed. The steps taken depend on the specific issue discovered, but usually involve the title insurance either correcting or paying an amount necessary to resolve the issue.
How do I learn more about title insurance?
At Bulldog Title, we offer a free consultation for those interested in learning more about title insurance and title searches. In order to speak with one of the members of the Bulldog team,
Call us today at 318-361-0061 to learn more about our services!