Frequently Asked Questions

1. What is title insurance?
Title insurance is a contract given to you and your lender to indemnify against losses arising through defects in the title to the property. That means that the chain of ownership on the property is accurate as stated in the title, and all liens, if any, have been satisfied and removed from the title. American Title Agency will insure that you are receiving full and clear title to the property.

2. What does the real term "Title" mean?
Title is the evidence or right in which a person has the ownership and possession of land. A defect in that title can be any legal right held by someone other than the owner to claim that property or to make demands on the owner of that property.

3. Why do I need to buy Title Insurance when I refinance?
Your lender requires it. It provides protection against events that may have occurred since you purchased the property.

4. How are the premiums (payments) setup?
There is a one-time fee (premium) that covers the buyer as long as they own the property, with the exception of refinancing your property. In refinancing lenders require to be in first lien position. They will ask for title work and insurance to ensure this.

5. How do I get Title Insurance?
If you are using an attorney, lender and/or realtor, they will guide you through the process, or you can simply call an agency of your choice. They will be more than happy to answer all your questions, begin your title work, and coordinate your closing.

6. Can I choose a Title Agency myself?
Yes, however, some lenders and/or attorneys have their own Title Agencies that they deal with on a continual basis. You can always recommend a Title Agency of your choice. You have the right by law to choose any title and/or settlement agent.

7. Do I need an Attorney?
We always recommend the use of an Attorney when dealing with real estate and contracts, however, it is not required in The State of New Jersey to obtain one when buying real estate. Title Agencies can order your searches, surveys, request payoffs, prepare all loan documents and attend your closing.

8. What's the cost of all this?
Unlike other insurances, Title Insurance requires a one-time premium. You pay a one-time premium, which is based upon the purchase price or the loan amount, plus any closing costs.

9. Isn't my homeowners insurance good enough?
Homeowners insurance protects you against damage to your property or people. It does not protect you or your lender on claims against the rightful ownership of your property or title.