Question 1

WHAT IS A TITLE COMPANY?

Accepted Answer

A title company hosts the buyer, seller, and financier of a real estate closing in one location to complete the sale and transfer of a real estate transaction. The title company usually provides title insurance which protects the property owner against loss if it is discovered that the title to the property contains a defect, usually found in the title search process.

Question 2

WHAT'S INVOLVED IN A TITLE SEARCH?

Accepted Answer

A title search is an integral part of your home-buying process. During a title search, we search through public records (deeds, mortgages, liens, wills, etc.) and any documents that affect the property’s title. We verify the legal owner of the home and determine any and all debts owed against the property.

Question 3

WHAT IS A PURCHASE AGREEMENT?

Accepted Answer

A purchase agreement clearly defines the terms of the real estate sale and what must happen before the property changes hands.  It defines contingencies, such as what happens if a requirement is not met and the agreement must be cancelled, or who pays for property inspection and any defects uncovered during the inspection.

Question 4

WHAT IS TITLE INSURANCE?

Accepted Answer

Title insurance, like all other insurance, is purchased to protect you when and if you need it.  Title insurance protects property owners from any defects in the title of real estate or challenges to the title that may occur in the future.  Real estate litigation is costly and burdensome, title insurance protects your investment in real estate and protects you against the future unknowns.

Question 5

ARE THERE DIFFERENT TYPES OF TITLE INSURANCE POLICIES?

Accepted Answer

Yes. There are two different types of title insurance policies: owner's and lender's.
An owner's policy protects you for the full price of your home plus legal costs if a title or ownership issue arises after you buy your home. This type of policy is issued for the amount you paid for your home, and will cover you as long as you own an interest in the property. You are not required to purchase an owner's policy.
If you borrow money to buy your home or property, your lender is likely to require you to buy a lender's policy. A lender's policy only protects the lender if a title or ownership problem comes up after the property is purchased. A lender's policy is issued for the amount of the mortgage, and the coverage decreases as you pay down your loan. Unlike an owner's policy, the lender's policy ends when you pay off your mortgage. You may be expected to pay the premium for this type of coverage.

Question 6

IS TITLE INSURANCE REQUIRED IN LOUISIANA?

Accepted Answer

When purchasing real estate, your lender will likely require title insurance. The coverage allows the lender to sell the mortgage to their investors and keep more money available for other loans.

Question 7

WHAT IS A REAL ESTATE CLOSING?

Accepted Answer

Also known as a settlement, a real estate closing takes place when a third party such as a real estate attorney or Title Company provides oversight in the transfer of property from the seller to the buyer, assuring that the terms of the purchase agreement are met. This “closing agent” also acts as the repository for documents and monies, disbursing them to the appropriate parties at the end of the real estate closing.

Question 8

WHAT DO I NEED TO BRING TO CLOSING?

Accepted Answer

If you are a SIGNER – borrower, buyer, seller, intervener, etc., you must provide valid, government issued photo I.D. at closing. This can be a driver’s license, state issued ID card or passport.

If you must bring funds to closing, they must be in the form of certified funds or cashier’s check, payable to TitlePlus, or funds must be sent by wire.

Sometimes a Wood Destroying Insect Report or WDIR is required for closing. Speak with your lender and realtor to confirm if this is required.

Additional documents may be needed for closing, which we will discuss with you and confirm prior to the act of closing.

Question 9

WHAT ARE CLOSING COSTS?

Accepted Answer

Closing costs are the total cost of completing the transfer of ownership of a house. These costs do not include the purchase price of the home. Rather, they are the fees and expenses aside from the purchase price (See what are items are typically included in closing costs below).

Question 10

WHEN WILL I KNOW IF I HAVE TO BRING MONEY OR HOW MUCH MONEY I HAVE TO BRING TO THE CLOSING?

Accepted Answer

If you are a buyer or borrower, you will likely have to bring funds to closing. All closing funds must be wired to our escrow account prior to closing or brought to closing in the form of certified funds or cashier’s check payable to TitlePlus.

As we rely on lenders to provide us with closing instructions to prepare the Closing Disclosure, we generally are unable to provide a final amount to close until 2 business days before closing.

Question 11

HOW LONG WILL THE ACTUAL CLOSING TAKE?

Accepted Answer

The length of time a closing takes can vary based on the type of transaction and if there is funding authorization required by the lender.

Typically, a sale takes an hour for the buyers and thirty minutes for the sellers, while a refinance is usually completed within 45 minutes.

Our goal is for you to have the best closing experience, with you able to review your closing documents with the settlement agent and have all of your questions answered. You really set the pace of your closing.

Question 12

WHAT DO I DO IF I CANNOT ATTEND THE CLOSING?

Accepted Answer

If you are unable to attend closing, generally arrangements can be made for signing.
The sooner we know the better, so please contact us directly to discuss the options available to you.

Please note that the options available will be specific to the transaction, and that e-signatures, docu-sign or any other form of electronic signature is not allowed for documents that will be recorded, i.e. powers of attorney, cash sales, mortgages, etc.

Louisiana Title FAQs