Frequently Asked Questions

Escrow is the process in which the funds of a transaction, most commonly the sale of a house or property, are held by a third party pending the fulfillment of the transaction. This is often fulfilled by a title company — such as Premier Land Title Company — or an attorney.

Once you are the owner of your new home or property, place your title policy in a safe place such as a fireproof filing cabinet at home or a safe deposit box at the bank.

Title insurance protects lenders and buyers from financial loss incurred from defects in the title of a property.

Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life, or health cover you against losses that may occur in the future.

Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before a transfer of property. This includes:

• Undisclosed heirs
• Forged deeds, mortgages, wills, releases and other documents
• False impersonation of the true landowner
• Deeds by minors
• Documents executed by a revoked or expired Power of Attorney
• False affidavits of death or heirship
• Probate matters
• Fraud
• Deeds and wills by persons of unsound mind
• Conveyances by undisclosed divorced spouses
• Rights of divorced parties
• Deeds by persons falsely representing their marital status
• Adverse possession
• Defective acknowledgments due to improper or expired notarization
• Forfeitures of real property due to criminal acts
• Mistakes and omissions resulting in improper abstracting
• Errors in tax records

Title insurance covers protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy; payment of legal costs if the title insurer has to defend your title against a covered claim; payment of successful claims against the title to your home covered by the policy, up to the insured amount of the policy.

A lender’s policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender’s interest from certain matters which may exist, but may not be known at the time of the sale. This policy only protects the lender’s interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner’s policy.

An owner’s policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.

Laws vary by state, but in general, homebuyers cover the costs for the lender’s title insurance, as they are the party taking a loan from the mortgage lender. In the state of Nebraska, the cost of the title insurance is split between the buyer and the seller.