Why do I need title insurance?
You need title insurance to protect the equity you have invested in your property. In an extreme case of claim, you could lose your entire home and property-and still be liable to pay off the balance of your mortgage. Most claims are not that dramatic, but even the smallest claim can cost you time, money, and aggravation, and you may have to pay costs for a legal defense. If a claim is made against your property, title insurance will, in accordance with the terms of your policy, assure you of a legal defense-and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.

Are there different types of title insurance policies?
Yes. There are a number of policies, but the most common are a loan policy and an owner's policy. The loan policy protects the lender's interest in the property as security for the outstanding balance under the buyer's mortgage. The owner's policy safeguards the buyer's investment or equity in the property up to the face value of the policy.

How much does title insurance cost?
Charges vary from state to state; however, since the New Mexico Department of Insurance governs New Mexico title insurance premiums, premium charges are set. Please refer to the rate chart within this site for view of the premiums. The cost of title insurance, including the search, examination, title commitment, and endorsements, normally amounts to about one percent or less of the cost of the property. Endorsements are usually $25.00 each (i.e. ML, EPL, ARM, Condo, PUD).

What is a title search?
A title search is a detailed examination of the historical records concerning a property. These records include deeds, liens, judgments, court records, property and name indexes, and many other documents. The purpose of the search is to verify the seller's right to transfer ownership, to discover any claims, defects, or other rights or burdens on the property.

What kinds of problems can a title search reveal?
A title search can reveal a number of title defects and liens as well as other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments, declarations, and restrictions limiting the use of the land.

Are there any problems that a title search cannot reveal?
Yes. There are some hidden hazards that even the most diligent title search may not reveal. Some examples are fraud, forgery, defective deeds, mental incompetence, and clerical errors. These defects can arise after you have purchased your home and can jeopardize your right to ownership.

What funds are considered "available funds"?
Cash, received wired funds, and a cashier's check or certified check that is issued to Title Guaranty are considered "available funds" on the day of deposit. Since Title Guaranty is affiliated with Los Alamos National Bank, a personal check drawn on an account held by Los Alamos National Bank may be converted to "available funds" on the day of deposit.

What is a construction loan title insurance policy?
A construction loan consists of short term financing of real estate construction. Construction loans are generally disbursed in installments as the construction on the property progresses. A construction loan is used to finance the costs of building a new structure on real property. It is a high-risk loan. The most important risk to the title insurer is the risk that the priority of the construction loan's mortgage will be lost to mechanics' liens.

What is loss of priority, also known as broken priority?
In any situation where there is evidence that priority may have been broken (i.e. there is any evidence of commencement of construction or delivery of materials prior to the recording of the deed of trust/mortgage) the Underwriter's regional office must be contacted if the mechanic lien coverage is desired by the proposed insured. Deletion of the mechanic lien exception in a standard Loan Policy is not typically offered in such circumstances. If the coverage is to be granted, the Underwriter must be provided sufficient reliable evidence so that an appropriate underwriting determination may be undertaken and an additional premium may be charged.

What is a power of attorney? Does Title Guaranty execute such documents?
A power of attorney is an authority by which one person enables another (attorney in fact) to act for him. A general power of attorney authorizes sale, mortgaging, etc. of all property of the principal. A special power of attorney specifies property, buyers, price, and terms of a specific transaction regarding a specific property belonging to the principal.

Title Guaranty ONLY executes specific power of attorney documents. The documents that we utilize are underwriter approved. Should one need a general power of attorney, seek legal counsel.

If I transfer my property into trust, will I have to purchase a new owner's policy?
Prior to August 15, 2001, title insurance did not transfer to trusts and a new policy was necessary if the property was to be held by the trust. After August 15, 2001, a new ruling was introduced that allowed title insurance to transfer into trusts. This "named insured endorsement" is a new endorsement that transfers ownership of the policy to heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate, partnership or fiduciary successors, and specifically, without limitation to the successors in interest to a corporation, limited liability company, or limited liability partnership, the successors in interest to a general or limited partnership, limited liability company, or limited liability partnership, the successors in interest to a general or limited partnership, the successors in interest to a joint venture, the trustee or successor trustee of a written trust instrument established by the insured name, the successor or substitute trustee of a trustee named in a written trust instrument established by the insured name, and the successors in interest to a trustee or trust resulting from distribution to the beneficiaries of the trust of all or part of the assets of the trust established by the insured name.

Why should customers not make their own appointments when they are using a real estate agent?
In Los Alamos, real estate agents assist their customers through the entire purchase or sale process; therefore, almost all attend closings and settlement appointments. As the intermediary, real estate agents can better coordinate available appointment times of the customer, realtor, and Title Guaranty.

Who makes the appointment for a Refinance closing?
Normally the lender will contact Title Guaranty to make the appointment. Since the lender prepares the loan package and most of the closing documents, the lender has a better idea of when closing can happen.

What are the most common hindrances to a closing happening on time?
The most common hindrances to a closing happening on time are no updated survey, no homeowner's hazard insurance, and no pest inspection. These must be executed or purchased prior to closing so that all information is accurate and the property can be insured without any abnormal exceptions.

Why do I have to buy a title insurance policy on behalf of my lender?
Anytime a customer gets a real estate loan from a financial institution the customer is required to purchase a Mortgagee's title insurance policy for the benefit of the lender. This insurance is purchased to protect the lender's investment against any clouds on the title.

Do I need a new Owner's policy when I refinance?
No. A new owner's policy is not required when refinancing. If a new appraisal is performed and the property is worth more than it was when the owner's policy was issued, your current owner's policy can be updated. The new owner's policy can be issued for the current fair market value of the property and you only pay the difference in premium costs for the increase in coverage.

Do I have to get a new survey on my property when refinancing? Why?
You only have to get a new survey on the property if improvements have been made since the last survey was completed. A new survey must be provided after improvements have been made on the property to reflect a new footprint of the property and to properly insure your and your lender's investments.

Unlike refinances, all purchases require a new survey.

Why do the seller and the buyer have separate closings?
In order to protect the confidentiality of our customers, Title Guaranty's policy is to have separate closings for buyer and seller; however, special circumstances may warrant simultaneous closings. To ensure the confidentiality of both parties Title Guaranty's policy is that of non-disclosure. Non-disclosure means that all transactions of the buyer and of the seller are confidential and it is not the right of the opposing party to have knowledge of the transactions on the other side.

How long will closing take?
That depends on what kind of transaction you are involved in and how many loans you may have. In general, refinances take 30-45 minutes, sale closings take 15-30 minutes, and purchase closings take 45-60 minutes.

Does Title Guaranty do For Sale By Owner (FSBO) closings?
Yes.

Does Title Guaranty do courtesy closings?
Yes. Courtesy closings are closings that are settled through Title Guaranty for a property in a county other than Los Alamos, but Title Guaranty does not issue the title insurance.

Does Title Guaranty do notary closings?
Yes. In a notary closing, the agent only performs notary services without any processing through Title Guaranty.

When do I take possession of my new home?
In most cases, the purchaser takes possession of the property on the day of closing after all documents have been executed and recorded and all funds have been disbursed.

When will I receive the keys to my new home?
Your realtor will see to it that you receive your keys on the day of closing unless other specific arrangements have been agreed upon.