Frequently asked questions
Title,
explained.
The questions buyers, borrowers, and investors ask us most — and the answers our closers give at the table. Have one that isn't here? Call 952-252-2500.
What is title insurance?
Title insurance is a contractual obligation that protects against losses that occur when title to a property is not free and clear of defects — liens, encumbrances, and defects that were unknown when the policy was issued. If a covered loss occurs, the insurer reimburses you up to the face amount of the policy, plus related legal expenses.
Unlike most insurance, it protects against problems that arose before you took ownership, not after.
Who should purchase title insurance?
Lenders require it. A lender's policy protects the lender's security interest in the property — but it does not protect you. An owner's policy protects the buyer for as long as they own the property.
It is usually less expensive to purchase a lender's policy and an owner's policy at the same time from the same title insurer.
How much title insurance will I need?
Homebuyers should insure the full purchase price. Lenders only require coverage for the amount of the mortgage loan.
What is gap coverage, and do you provide it?
Gap coverage protects against liens or encumbrances that attach to the property during the period between the title commitment and the recording of your deed or mortgage.
Yes, we provide it. Gap coverage is automatically provided on every transaction West Title closes.
Why is a limited warranty deed used for REO purchases?
A limited warranty deed only warrants title for the time the seller owned the property. REO sellers acquired the property through foreclosure, so they will not warrant title beyond their own period of ownership.
How am I protected from title defects that arose before an REO seller acquired the property?
Through your owner's policy. The owner's policy of title insurance assures the purchaser that title to the property is vested in the purchaser and that it is free from all defects, liens, and encumbrances except those specifically listed as exceptions in the policy.
Can all homeowners choose their own title company?
Yes. Federal law (RESPA) prohibits requiring a buyer to use a specific title company, and a 2007 report by the U.S. Government Accountability Office supported consumers' right to shop for title services. If you're buying or refinancing, you can name West Title as your title company.
How do I know I'll be fairly represented when I close with West Title?
West Title assigns a specific closer to your transaction who communicates with you directly. The title company functions as an intermediate third party to the transaction, representing neither buyer nor seller — our job is to close the file accurately and explain every document you sign.
How should I send funds to close?
Call us at 952-252-2500 and confirm wiring instructions with your closer by voice before sending any funds. We never change wiring instructions by email. See our wire fraud notice.