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Statements of Information
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.
To help you better understand this sensitive subject, the Land Title
Association has answered some of the questions most commonly asked about
Statements of Information.
What is a Statement of Information?
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.
What does a Statement of Information do?
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.
What types of information are requested in a Statement of Information?
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.
Will the information I supply be kept confidential?
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.
What happens if a buyer, seller or borrower fails to provide the
requested Statement of Information?
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.
Article by CLTA
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