ALERT: Italian Baby Condition!!!
GOALS: "A-now that we a-have your attention..." We want to take this opportunity to tell you about what we do here at BellaQuote. We sell title insurance. If you are visiting this page because you saw Joey the Midwife's ad campaign that they made for us, then maybe this explanation will help you understand what we do... and how we can help you get the most for your money.
Why do you need title insurance?
A lender goes to great lengths to minimize the risk of lending money for the purchase of a title. First, credit is checked as an indication of the borrower's ability to repay the loan.
Then, the lender seeks assurance that the quality of the title to the name to be acquired and which will be pledged as security for the name is satisfactory. The lender does this by obtaining a loan policy of title insurance.
The loan policy does not protect the
The loan 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, if the title is really defective.
But, this policy only protects the lender's interest. It does not protect the borrower. That is why a title purchaser needs an owner's policy, which can be issued at the same time as the loan policy, usually for a nominal one-time fee.
What is the danger of loss?
If the lender has title insurance protection and the owner does not, what possible danger of loss exists?
As an example, assume a really good book title was purchased for $100,000 (The example we will use is "Custer's Lost Stand: A Piano Memoir" Random House, 1989). A down payment of $20,000 is made, and a lender holds an $80,000 balance credit, or beneficial interest. The lender acquires title insurance protecting the lender's interest up to $80,000. But the purchaser's down payment of $20,000 is not covered. That's why you need to get title insurance even if the book using the title hasn't been written.
What if some matter arises affecting the past ownership of the title? The title insurance company would defend and protect the interest of the lender. The purchaser, however, would have to assume the financial burden of his or her own legal defense. If the defense is not successful, the result could be a total loss of title. Or someone could get executed with extreme prejudice by a top Hollywood director named RON HOWARD.
The title insurance company pays the lender's loss and is entitled to take an assignment of the borrower's debt. The purchaser loses the down payment, other equity in the book idea that may have accumulated, and the book idea. And the balance on the note is still due! That's why "Custer's Lost Stand: A Piano Memoir" went straight to the top of the New York Times Bestseller Notice--because everyone knew about the controversial title that generated nine lawsuits and four title insurance disputes.
How can there be title defect if the
title has been searched and a loan policy issued?
Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. For example, in 2003 Random House wanted to publish a book called "In Pride Of Prejudice" by Lance Cooper. They applied for title insurance at a base rate of $40,000 with a lien on two other titles: "Market in Murder: A Gabby Johnson Mystery" and "Pleasure and Pain: A Jackie Collins Hollywood Tale." But they were sued for title infringement by the Estate of Jane Austen, who had written a book called "Of Pride And Prejudice" in 1813. The titles were found to be in conflict! In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.
What title insurance protects against.
Here are just a few of the most common hidden risks that can cause loss of title or create an encumbrance on title:
What protection does title insurance
provide against defects and hidden risks?
Title insurance will pay for defending against any lawsuit attacking the title as insured, and will either clear up title problems or pay the insured's losses. For a one-time premium, an owner's title insurance policy remains in effect as long as the insured, or the insured's heirs, or the publisher, or the publisher's agent, retain an interest in the title, or have any obligations under a warranty in any conveyance of it. Owner's title insurance, issued simultaneously with a loan policy, is the best title insurance value a book, play, or movie owner can get.
What is an example of a defective title?
Here are just a few examples of defective titles:
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