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
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
Still have questions? Contact me today for a
free consultation!
free consultation!
Colin O’Neal
Buyer’s Agent
200 Rufe Snow North, Suite 202
Keller, TX 76248
(817) 898-0145 Office
(817) 898-1771 Fax
colin@househuntersdfw.com
Buyer’s Agent
200 Rufe Snow North, Suite 202
Keller, TX 76248
(817) 898-0145 Office
(817) 898-1771 Fax
colin@househuntersdfw.com
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