Frequently Asked Questions

Why do I need Abstracting or Title Insurance?

Owning Real Estate is the largest investment you will make and one of the greatest values of freedom in this country. You want to be assured that the property you are buying will be yours. Other than the mortgage company, no one else should have any claims or restrictions against your home. Both Abstract and Title Insurance provide proof of ownership, a list of liens against the property and shows any restrictions that may be filed against the property

Abstracting or Title Insurance. Which one?

The State of Iowa does not allow Title Insurance Companies to sell Title Insurance within the State of Iowa, so abstracts are the first choice when selling or buying homes. Two exceptions are allowed by the State. The State of Iowa will issue a Title Certificate through the Title Guaranty Program. This is Iowa's version of Title Insurance and requires that an abstract be continued and that an attorney examine the abstract. The State of Iowa encourages this program for land transfers. All proceeds help pay for Iowa housing programs. Title Insurance Companies outside the State of Iowa can issue title insurance on Iowa property. This insurance must be underwritten in the state the company is incorporated and issued from that state. Which one to choose? It just depends. Usually the lender, your attorney or your Realtor will suggest the method of Title evidence needed. We suggest that for commercial property or agriculture property an abstract and an attorney's opinion is the best choice. Residential Property should be insured by an Iowa Title Guaranty Certificate.

What is an Abstract?

An Abstract of Title is a history of all transactions shown in the public records affecting a particular piece of land. This history is typed out in an easily readable form, the pages are fastened together under a cover. An Attorney reviews the abstract to determine whether there are any title defects which must be cleared before a buyer can purchase the property.

What is the cost of an abstract and who pays?

The price of an abstract is determined by the number of entries we add to the abstract. If the abstract was last continued many years ago, the chances of multiple deeds, mortgages, releases, probates and maybe a divorce or foreclosure can add to the price. The average price of a continued abstract runs $400 to $800. If it's a more current abstract, the price will be less. If your old abstract is lost or you never received one, the price is higher. The expense is determined by the length of time we must search. 40 years is the minimum time we must search. The price of a new abstract runs $800 to $1,300. The cost of the abstract is usually paid by the seller because the seller must prove that they legally hold title. This cost can be negiotated when the purchase agreement is written.

Title Insurance:

What is Title Insurance?

Title Insurance is a contract to indemnify against losses arising through defects in the title to real estate.

What does Title Insurance protect against?

Some of the most common problems found in land transfers are: unpaid liens; inaccurate or inadequate legal descriptions; mistakes found in legal documents; fraudulent deeds or mortgages; undisclosed or missing heirs; deeds signed by a minor or a person of unsound mind.

What is the cost of Title Insurance and who pays?

Title Insurance is determined by the value of the property being insured. The purchase price or the mortgage amount determines the price paid for Title Insurance.The price is usually split between the seller and the buyer.

Closing Questions

What is a Closing?

Closings are also called settlement or escrow. Closings are held in the office of the Lender, Realtor or Title Company. The settlement involves the completion of all paperwork to finalize the purchase agreement between the buyer and seller. At the closing deeds, mortgages and other required instruments are signed. The final accounting between the parties takes place, monies are dispursed and the documents are recorded with the county.

What are Closing Cost?

Closing cost are miscellaneous expenses involved in closing a real estate transaction over and above the price of the land. Typical cost are: pro-ration of the real estate taxes; recording fees paid to the county; abstracting or Title Insurance fees; appraisals or inspections; surveys; revenue stamps on deeds; real estate commissions.

Why do I need a Title Company to Close a Transaction?

The service offered by the Title Company is designed to make your real estate transaction run in a smooth professional manner. We order all the needed title evidence, payoffs for mortgages and judgements, determine the financial accounting for both the buyer and seller according to Federal HUD Guidelines, audit statements on all documents, comply with the lenders or attorney's instructions, record the deed and mortgage, disburse funds as appropriate, and secures the final abstracting or title policy.

How long does a closing take?

Usually the closing takes less than an hour, but can vary.

What do I need to bring to the closing?

Each party needs to bring an official photo ID such as a drivers license. If you are required to bring funds to the settlement, they should be in the form of a certified check, a cashier's check or a money order.

Title Search or Title Report

What is a Title Report?

If your circumstances indicate that you do not need an Abstract or Title Insurance, but you want an inexpensive report to show you who holds title, list all the mortgage information, and show any judgements, liens and tax information. Our Title report gives you a "Snap shot" of the title condition of any property. The price may vary, but most residental property reports are priced at $135.00

If I have a year old Title insurance Policy or Title Report, will this be sufficent to buy a property?

Changes affecting the property can be recorded daily. The Title Report should be a minimum of 30 days old and then updated when you have a closing date. We will update your reports at no charge. Just call us and give us a time and date you need your verbal update.