Frequently Asked Questions

Title searches involve closely examining the history of a property and its ownership. This includes deeds, name indexes, court records, and more. This search aims to verify the seller has the right to transfer property ownership, as well as identify any other parties that have rights or interests in the property that might impact ownership.

Title searches should reveal defects with title, including possible:

• Claims
• Liens
• Restrictions on land use
• Encumbrances
• Judgments for unpaid mortgages or taxes

There can be title issues that are “hidden” from a title search. These defects might be hidden due to mistakes, confusion, clerical errors, mental incompetence, defective deeds, or even forgery and fraud.

Title insurance provides coverage and protection in case a title defect (even a hidden one) results in an unexpected claim against your property ownership.

Claims against your property – and their effects – can vary widely. At the least they can cause stress, time, and legal fees, while at worst, they can cause you to lose the entire property, yet still be responsible for the mortgage.

Title insurance covers the costs of your defense against claims on the property in accordance with your policy terms. It also covers losses should a title claim prove to be valid.

A deed is not necessarily proof of ownership. A deed demonstrates that ownership was transferred, but this document will not show whether others have interests in the property, or if there are claims or liens outstanding against the title.

An abstract is a public record showing title history, but these do not always inform you of all possible title defects or restrictions. Again, these might be hidden issues due to errors or adverse actions by current or prior owners. Even the most diligent examination of a thorough abstract cannot guarantee that issues will not arise in the future.

Some property owners will assure you they conducted a title search a short time ago, and the title was clean. However, an owner can take several actions in a few months that result in encumbrances on the title. It is always important to conduct your own title search regarding the present state of the property title.

The builder’s policy does not provide protection for you, and also events can happen since the builder purchased a policy that can result in judgments, liens, and unpaid taxes. If these are not disclosed, you can face losses if you do not have your own coverage.

There are two different types of title insurance policies – one to cover the lender and one to cover the property owner. A lender will have coverage to protect their interest in the property as collateral for the mortgage. The owner’s policy directly protects them from claims against their investment.

Title insurance costs less than most people imagine, and the costs differ depending on the property location. Coverage generally involves a one-time payment that is one percent or less of the property’s value.

Title insurance continues to cover you and your heirs as long as you hold an ownership interest in the property.

You should purchase your policy from a licensed title insurance company that operates in your specific state. Our real estate lawyers can inform you of title insurance options in Charleston.

A general warranty deed is a type of deed where the seller/grantor guarantees that they hold clear title to a piece of real estate and has a right to sell it to the buyer/guarantee. A general warranty deed protects the grantee against title defects arising at any point in time, extending back to the property’s origins.

A special warranty deed protects the buyer/grantee only against title defects arising from the actions or omissions of the seller/grantor.

A quitclaim deed, also incorrectly and commonly referred to as a “Quick Claim Deed”, is a type of deed where the seller/grantor does not guarantee that they hold title to a piece of real estate.