In this six-part series from Maverick, we will describe the process that a title company uses to ensure a buyer’s property’s title is clear for the issuance of a title insurance policy.
Part 4: Clearing Title
The Title Officer at the Title Agency took a long sip of water. She spent the majority of the day removing “clouds” from a pretty large stack of her open files. A “cloud” to title is any sort of inconsistency, error, fact, or occurrence that might hinder the clear conveyance of title.
Placing the glass back on her desk, the Title Officer peered through the cold water. Once the clouds are removed from title, what is left should be like her water – completely clear. There should be nothing that would create doubt or be difficult to understand or see though.
Sometimes though, it takes a lot of effort to clear out all of the clouds. She had to communicate with all sides of the transaction -the buyer’s attorney as well as the seller’s attorney, lenders and others, in order to obtain the documentation she required.
Patty Purchaser’s file lay open on her desk. Fortunately, this was a pretty easy one. The Trust Agreement had been submitted and reviewed. No issues there – the Trustee was named and had the authority to sign on behalf of the Trust. She prepared a Trust Affidavit for the Trustee to sign at closing to her digital file.
The Payoff Letter from the lender of the open mortgage broke down the amount due as well as the per diem for interest that would be owed. But there was another lien that came up in the Title Search too. This one could be resolved by using an Ancient Mortgage Affidavit as the lien was recorded forty years ago and the current owner did not have any relation to the borrower. Additionally, the loan amount was small, comparatively speaking, and was only $25,000. She also prepared an Ancient Mortgage Affidavit and saved it to her digital file as well.
That should do it! The Title Officer took another sip of water. What a perfect way to end the day.
Stay tuned and follow Maverick Title Services for the remainder of this six-part series:
Part 5: The Closing Table
Part 6: Delivery of Title
