Title Industry FAQs

What is title insurance and why do people need it?

Title insurance, and the search and examination process that takes place before a policy is issued, assures the homebuyer that the title to their property is clear and that they are protected from any future challenges to their title.

How is the search conducted and what are typical problems you look for?

A typical title examination includes the search of numerous public documents, including tax records, court judgments, prior deeds and encumbrances, and federal and state records. We, at Rocky Mountain Title Company, look for things like prior mortgages, judgments, liens, street and sewer system assessments, special taxes and levies, and numerous other matters that could affect the status and marketability of title.

Why do homeowners have to purchase title insurance on a refinance if they already purchased it when they bought their home?

Lender’s title insurance (the Loan Policy) expires when the mortgage loan is paid off. When a homeowner refinances, the old loan is essentially paid off and a new loan issued. The lender will require a new Loan Policy to ensure that no title issues have occurred since the last policy was issues. Rocky Mountain Title Company offers a 50% discount on the title premium for all refinances. On a refinance, there is no need to purchase a new Owner’s Policy.

What is the difference between a Loan Policy and an Owner’s Policy?

A Loan policy is issued in the amount of the mortgage loan to assure the lender’s priority position on the lien, and expires when the loan is paid off. An Owner’s Policy protects the owner’s investment in the property for as long as they or their heirs have an interest in the property.

Why should someone buy title insurance when claims are rare?

Claims are rare exactly because of the search, examination, and curative work performed by Rocky Mountain Title before the property exchanges hands. One out of every three title searches reveals a problem that must be corrected by Rocky Mountain Title Company before the sale can close.

What about all of the news reports of “illegal kickback” and sham title companies forming affiliated business arrangements with real estate agents?

Rocky Mountain Title Company and our underwriter, Attorneys Title Guaranty Fund, practice solely under the stringent guidelines of the Colorado Department of Insurance, which oversees the title company and its fees. Since its conception in 2003, Rocky Mountain Title has never had a title claim and has never been fined by the Colorado Division of Insurance for unlawful practices, which indicates thorough searches and lawful practice and charges.