The title company researches the property records to make sure there is clear title to transfer. In our market, it is customary for the sellers pay for the ‘title insurance’ to the buyer from the title company. Rapid City buyer’s pay for title insurance to the lender in the amount of their loan – it is usually found on their Good Faith Estimate of closing costs from their first appointment with their lender.

This document from the Rapid City title company [their commitment to provide title insurance] summarizes their research. It will itemize any recorded liens against the property, as well as any issues that need to be solved before clear title can be transferred. For example, it is common for an existing mortgage to show up that needs to be paid off before the final copy of the title insurance can be issued for the new owners.

‘Schedule A’ shows the legal names of the buyers & sellers, the legal description of the property, and the amount of the policy (the price you are paying for the property).

‘Schedule B’ itemizes requirements that must be met for the final title insurance to be issued and exceptions the insurance does not cover. Some of these excepted items (such as unrecorded mechanic’s liens) can be covered for an additional cost.

The end of this title insurance commitment may include a copy of the plat map, copies of the documents granting utility easements, and a copy of the original covenants.

The Rapid City buyers receive the final title insurance, after the old seller’s mortgage has been paid off, and the buyer’s new mortgage recorded at the court house. This could take, typically, around six weeks or so after closing to receive it.

If you have any questions about title commitments, please contact me at caroll@PropertyByReferral.com.