|
|
What's in a name?
When a title company seeks to uncover matters affecting
title to real property, the answer is, "Quite a bit."
Statements of Information provide title companies with the
information they need to distinguish the buyers and sellers
of real property from others with similar names. After
identifying the true buyers and sellers, title companies may
disregard the judgments, liens or other matters on the
public records under similar names.
To help you better understand this sensitive subject, the
Land Title Association has answered some of the questions
most commonly asked about Statements of Information.
What is a Statement of Information?
A Statement of Information is a form routinely requested
from the buyer, seller and borrower in a transaction where
title insurance is sought. The completed form provides the
title company with information needed to adequately examine
documents so as to disregard matters which do not affect the
property to be insured, matters which actually apply to some
other person.
What does a Statement of Information do?
Every day documents affecting real property--liens, court
decrees, bankruptcies--are recorded.
Whenever a title company uncovers a recorded document in
which the name is the same or similar to that of the buyer,
seller or borrower in a title transaction, the title company
must ask, "Does this document affect the parties we are
insuring?" Because, if it does, it affects title to the
property and would, therefore, be listed as an exception
from coverage under the title policy.
A properly completed Statement of Information will allow the
title company to differentiate between parties with the same
or similar names when searching documents recorded by name.
This protects all parties involved and allows the title
company to competently carry out its duties without
unnecessary delay.
What types of information are requested in a Statement of
Information?
The information requested is personal in nature, but not
unnecessarily so. The information requested is essential to
avoid delays in closing the transaction.
You, and your spouse if you are married, will be asked to
provide full name, social security number, year of birth,
birthplace, and information or citizenship. If you are
married, you will be asked the date and place of your
marriage.
Residence and employment information will be requested, as
will information regarding previous marriages if you are
divorced.
Will the information I supply be kept confidential?
The information you supply is completely confidential and
only for title company use in completing the search of
records necessary before a policy of title insurance can be
issued.
What happens if a buyer, seller or borrower fails to
provide the requested Statement of Information?
At best, failure to provide the requested Statement of
Information will hinder the search and examination
capabilities of the title company, causing delay in the
production of your title policy.
At worst, failure to provide the information requested could
prohibit the close of your escrow. Without a Statement of
Information, it would be necessary for the title company to
list as exceptions from coverage judgments, liens or other
matters which may affect the property to be insured. Such
exceptions would be unacceptable to most lenders, whose
interest must also be insured.
Conclusion
Title companies make every attempt in issuing a policy of
title insurance to identify known risks affecting your
property and to efficiently and correctly transfer title so
as to protect your interests as a homebuyer.
By properly completing a Statement of Information, you allow
the title company to provide the service you need with the
assurance of confidentiality.
|
|
