Methods For Tracking Down A Lost Title Insurance Policy
Don't give up if you're trying to sell your house but can't seem to locate your owner's title policy. It isn't difficult to get a duplicate of a lost title insurance policy.
First and foremost, let's talk about the basics. When a buyer chooses an owner's title policy, the insurance company does a comprehensive title search and publishes a preliminary report that outlines the title defects that are not covered by the policy, as well as the terms under which a new policy would be issued. A separate title insurance commitment is provided in certain jurisdictions to ensure that the insurer will supply the owner's title policy at the time the transaction closes; in other states, the preliminary report is utilized instead of the commitment.
If you buy a house with a mortgage, the insurance company will issue and deliver over an owner's policy to you and a lender's policy to your lender after you negotiate the terms and conditions of the policy and close on the house.
Owners' title policies are sometimes misplaced or lost. There are three options for obtaining a copy of a lost title insurance policy when this occurs.
1. Get in touch with the title agent or attorney who worked on the deal.
Your agent may still hold the owner's policy if he handled the real estate transaction when you purchased the house but didn't pass it over to you. You may get a copy of your lost title insurance policy by phoning your insurer and supplying the information asked if he no longer has it on file (usually, your name and address).
TIP: If you plan to purchase a new home after selling your present one, acquire an owner's title policy from a reliable, ALTA-certified title insurance provider. Also, seek a preliminary report or commitment before to the closure and thoroughly study it to determine precisely what is and is not covered. Obtain your owner's policy and save it safely after the closure.
2. Obtain a copy of the HUD-1 Settlement Statement, ALTA Statement, or Closing Disclosure.
Title insurers are sometimes unable to identify policies that were issued many years ago. A title agent who is unskilled or uneducated may also fail to issue an owner's policy, however this is an unusual occurrence. You may provide a copy of your HUD-1 Settlement Statement, Alta Statement, or Closing Disclosure to show that you paid a premium for an owner's insurance. This document lists all of the third parties that provided services and were paid at the closing.
TIP: If you provide a copy of the preliminary report or commitment as proof of insurance, your insurer may be able to identify and deliver a copy of your original owner's policy more quickly.
3. Make contact with the financial institution.
Contact your lender if you've also misplaced your Closing Statement and aren't sure who provided your title coverage. Your lender will be able to tell you who issued your title policy and provide you with a copy of your closing form since you also acquired a lender's title insurance.