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What's in a name? When a title company seeks to
uncover matters affecting title to real property, the answer is, 'Quite a
bit.'
Statements of Information provide title
companies with the information they need to distinguish the buyers and sellers
of real property from others with similar names. After identifying the true
buyers and sellers, title companies may disregard the judgments, liens or other
matters on the public records under similar names.
Q. What Is A Statement Of
Information?
A. A Statement of
Information is a form routinely requested from the buyer, seller and borrower
in a transaction where title insurance is sought. The completed form provides
the title company with information needed to adequately examine documents so as
to disregard matters which do not affect the property to be insured, matters
which actually apply to some other person.
Q. What Does
A Statement Of Information Do?
A. Every day documents
affecting real property-liens, court decrees, bankruptcies-are recorded.
Whenever a title company uncovers a
recorded document in which the name is the same or similar to that of the
buyer, seller or borrower in a title transaction, the title company must ask,
'Does this document affect the parties we are insuring?' Because, if it does,
it affects title to the property and would, therefore, be listed as an
exception from coverage under the title policy.
A
properly completed Statement of Information will allow the title company to
differentiate between parties with the same or similar names when searching
documents recorded by name. This protects all parties involved and allows the
title company to competently carry out its duties without unnecessary
delay.
Q. What Types
Of Information Are Requested In A Statement Of Information?
A. The information requested
is personal in nature, but not unnecessarily so. The information requested is
essential to avoid delays in closing the transaction. You, and your spouse if
you are married, will be asked to provide full name, social security number,
year of birth, birthplace, and information or citizenship. If you are married,
you will be asked the date and place of your marriage.
Residence and employment
information will be requested, as will information regarding previous marriages
if you are divorced.
Q. Will The
Information I Supply Be Kept Confidential?
A. The information you
supply is completely confidential and only for title company use in completing
the search of records necessary before a policy of title insurance can be
issued.
Q. What
Happens If A Buyer, Seller Or Borrower Fails To Provide The Requested Statement
Of Information?
A. At best, failure to
provide the requested Statement of Information will hinder the search and
examination capabilities of the title company, causing delay in the production
of your title policy.
At
worst, failure to provide the information requested could prohibit the close of
your escrow. Without a Statement of Information, it would be necessary for the
title company to list as exceptions from coverage judgments, liens or other
matters which may affect the property to be insured. Such exceptions would be
unacceptable to most lenders, whose interest must also be insured.
Conclusion: Title companies make every
attempt in issuing a policy of title insurance to identify known risks
affecting your property and to efficiently and correctly transfer title so as
to protect your interests as a homebuyer.
By properly completing a Statement of
Information, you allow the title company to provide the service you need with
the assurance of confidentiality.
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