WHAT YOU PAY FOR AND WHAT YOU GET

Your purchase of a title insurance policy is required by your lending institution. Today's nationwide mortgage practices have made title insurance a necessary part of the residential closing and escrow process in most cases in Ohio.

Basically, there are two types of title insurance policies: one to protect the lender and one to protect the owner of the home. You are required to provide a policy that protects the lender; you are encouraged to purchase an additional policy which will protect you.

WHAT DO THE POLICIES COVER?

The lender's policy insures the lender that it has a valid first mortgage on your property.

The owner's policy insures you that you have good title to your own property.

If it is later found that there is "something wrong" with your title, the lender is protected under its insurance policy. If you have not purchased a title insurance policy of your own, you will have no protection and you may sustain a serious loss.

WHAT DO WE MEAN BY "SOMETHING WRONG?"

"Something wrong" is usually taken to mean "title defects." The examination of a land title and the real estate closing are complicated functions. Unforeseeable problems may exist, and honest human error is always a possibility. These problems can be "title defects." When you buy a house, you get more than a building. You get title to a piece of Mother Earth - a piece that others have owned before you. You want to know that you now own a clear title and you want to know if that title is subject to anything, such as building restrictions or drainage easements. The owner's title insurance policy is designed for that purpose.

WHAT WILL IT COST ME?

If you do buy an Owner's Policy, the Loan Policy (which you must buy), which normally would cost $3.50 per $1,000 of mortgage loan, will cost only an additional $50.00. This premium is paid only once - at the closing - and the Owner's Policy will protect your investment indefinitely.

SAMPLE COMPUTATION FOR OHIO TRANSACTIONS

If you are buying a home for $100,000 and are borrowing $75,000, the cost for each policy, without the other, is as follows:

• The $75,000 Lender's Policy at $3.50 per $1,000 is ... ... $ 262.50
• The $100,000 Owner's Policy at $5.00 per $1,000 is ... ... 500.00
• The cost for independently purchasing both policies is ... ... $762.50
• However, if you purchase both policies at the same time (within 30 days),
  the cost for the Loan Policy is reduced to only $50.00; just add this $50.00
  to the cost of the Owner's Policy ($500.00); both policies will then cost ... ... $550.00
• Your total savings by purchasing both policies is ... ... $212.50

You have up to thirty (30) days after your closing to decide whether you want to have Owner's Title Insurance coverage. You should seek independent advice if you are undecided.

The premiums for title insurance policies are enforced by the State of Ohio Department of Insurance and are competitive with all title insurance companies statewide. This brochure has been written in non-technical language; language contained in title insurance policies is controlling.

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