Title Insurance:

Title insurance is an actual insurance policy (contract of indemnity) which insures the owner and/or lender against loss or damage suffered as the result of liens, encumbrances upon, defects in, or the unmarketablity of, the title to real property described in the policy; including encumbrances not evidenced in the public (e.g. an unrecorded deed). A premium is charged which is established by the Ohio Title Insurance Commission; title insurance is underwritten by a title insurance company, which has the obligation to defend the title in the event of loss.

Title Guaranty:

Title guaranty is a policy which guarantees or warrants the record title only, as disclosed by an examination of the public records. Defects which are not evidenced in the public records are not covered. A premium is charged which is established by the Ohio Title Insurance Commission; a title guaranty is underwritten by a title insurance company, which has the obligation to defend the title against loss, as long as it arises from liens or encumbrances which were of record as of the date of the policy.

Title Certificate or Attorney’s Opinion:

A Title Certificate is a document which sets forth legal conclusions about the status of the title, limited to a search of the records of the county in which the property is situated. This title examination is usually limited in time to forty years prior to the time of the examination. A Title Certificate or Attorneys’ Opinion is not underwritten by a title company is neither insured nor guaranteed.

Record Search:

A Record Search is a document setting forth a very limited amount of information from the county records. It states the name(s) of the record owners as of the last deed recorded in the county for the property in question, and any liens which have arisen relative to that property from that date forward. A Record Search is not underwritten by a title company and is neither insured nor guaranteed, nor should it be relied upon for the transfer of property.

Tax Deferred Exchanges:

A 1031 Exchange is a method of selling your investment or business property and using the sale proceeds to purchase another investment or business property without paying capital gains tax. The exchange of properties can be simultaneous or it can be delayed – the seller’s proceeds can be held for the purchase of another approved property for a period of time up to one hundred and eighty days from the first sale. A qualified intermediary is used to provide the IRS approved safe harbor necessary to complete the transaction. American Title Agency, Inc. has acted as the closing agent for many 1031 Exchange transactions – both simultaneous and deferred.

Closing and Escrow Services:

American Title Agency will serve as a neutral third party to your transaction. Our duty is to provide an accurate accounting of your transaction in accordance with your purchase contract and/or your lender requirements. We assure funds will not disbursed and recording of documents will not happen until all conditions of the transaction are complete.

Note: The above definitions are to be used only as a general guide for your understanding of the various forms of title evidence. For specific information, consult the actual piece of title evidence for coverage, exclusions, and exceptions.