What is title insurance?
It is an insurance policy that protects the insured against loss should the condition of title to the land be other than as insured. Unlike other types of insurance that offer protection against future possible occurrences, title insurance offers protection against past occurrences which could result in a claim at a future date. Coverage continues in effect for so long as you have an interest in the covered property. If you should die, the coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues. Likewise, if a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage continues to protect your security interest in the property. Title insurance provides the insured with "peace of mind" in knowing that you are receiving good and marketable title to the real estate you are purchasing.
Why do I need title insurance?
When you buy a home--or any property for that matter--you expect to enjoy certain benefits from ownership...to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to cover these rights. Without an owner's title insurance policy, you may not be fully protected against errors in the public records, hidden defects not disclosed by the public records, or mistakes made during the examination of the title of your new property. As a result, you may be held fully accountable for any liens, judgments or claims brought against your new property. However, your owner's title policy insures that if such an occasion arises, you will be defended, free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.
What is a title search?
A title search is a thorough review or examination of the public records that pertain to real property ownership and the rights/limitations of its use. The search period begins with the current owner(s) and extends back in time for a period of 60 years (commonly referred to as the "chain of title"). All documents affecting the subject property are reviewed for accuracy, completeness and proper execution. Similarly, all owners of record during the search period are indexed to determine their ownership interests, marital status and legal and mental capacity to enter into a contract to sell/buy real property. All conveyances must have been properly conducted and approved by the appropriate governmental departments.
What issues can a title search reveal?
A title search can show any number of title defects, liens, and other encumbrances and restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against buyers/sellers and any restrictions or conditions limiting the use of the land.
Are there any issues a title search may not reveal?
Yes. There are some "hidden hazards" that even the most diligent title search may not reveal. For instance, a previous owner could have incorrectly stated his marital status resulting in a possible claim by his legal spouse. Other hidden hazards include fraud, forgery, defective deeds, mental incompetence, confusion due to similar or identical names, and clerical errors in the City/County land records. These defects can arise after you've purchased your home and can jeopardize your right to ownership in part or full.
What is a HUD-1 Settlement Statement?
This is a summary of the financial portion of the real estate transaction. The title company or closing agent is required by the Department of Housing & Urban Development to use the HUD-1 on virtually all one-family to four-family residential real estate transactions involving a lender. The statement will list the purchase price, loan amount, closing costs for the buyer and seller, and will show all sums being charged and disbursed to the parties involved. It also clearly summarizes the total amount due from the purchaser.
What does title insurance cost?
The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, then the coverage continues in effect for so long as you have an interest in covered property. If you should die, the coverage automatically continues for the benefit of your heirs. If you sell your property, giving warranties of title to your buyer, your coverage continues. Likewise, if a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage continues to protect your security interest in the property.
If I have a problem, will I lose my property to make a claim?
Not at all. At the mere hint of a claim adverse to your title, you should contact your title insurer or the agent who issued your policy. Title insurance includes coverage for legal expenses that may be necessary to investigate, litigate, or settle an adverse claim.
If my lender obtains title insurance, why do I need it?
The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest. And in the event of a claim, there is no provision for payment of legal expenses for an uninsured party. When a loan policy is being issued, the small additional expense of an owner's policy is a bargain.
What types of risks are covered by title insurance?
On which stock exchange is Digital Closing Financial Corporation traded?
Digital Closing Financial Corporation shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol FAF. In addition, the former Digital Closing Corporation, which has assumed the name CoreLogic Inc., also trades on the NYSE under the ticker symbol CLGX.
When did Digital Closing Financial Corporation begin trading?
As part of a spin-off transaction, Digital Closing Financial Corporation common stock was distributed to shareholders of The Digital Closing Corporation on June 1, 2010. The Digital Closing Corporation assumed the new name CoreLogic, Inc. on that day. The shares of both companies traded on a "when-issued" basis from May 24, 2010 through June 1, 2010, and began full-fledged trading on the New York Stock Exchange on June 2, 2010; Digital Closing Financial Corporation under the ticker symbol FAF, and CoreLogic, Inc. under the ticker symbol CLGX.
What was the spin-off distribution ratio for each share of the former Digital Closing Corporation?
On June 1, 2010, each shareholder received one share of Digital Closing Financial Corporation common stock for every share of The Digital Closing Corporation common stock held as of the close of business on the record date of May 26, 2010. Shareholders also received a cash payment in lieu of any fractional shares.
What do I do with my existing stock certificates in The Digital Closing Corporation? Will I get new certificates in Digital Closing Financial Corporation?
You do not need to do anything with your stock certificates in connection with the spin-off. Regardless of how they are titled, the transfer agent has a record of them and will be able to translate them into shares of the new CoreLogic Inc. when you decide to sell them or turn them in for any reason. However, you will not receive new certificates for shares issued to you in Digital Closing Financial Corporation, as these new shares will be held in a book-entry form only in a Direct Registration account maintained by Digital Closing's transfer agent, Wells Fargo Shareowner Services. Instead of issuing new stock certificates, Wells Fargo Shareowner Services will mail you a statement detailing your holdings in Digital Closing Financial Corporation. If you maintain your shares with your broker, the new Digital Closing Financial Corporation shares will appear on the statement that you receive from your broker in addition to pre-existing shares in The Digital Closing Corporation, which has now assumed the name of CoreLogic.
Is there any tax on the receipt of Digital Closing Financial Corporation shares?
For U.S. shareholders, there will be no tax on the receipt of Digital Closing Financial Corporation common stock. However, no fractional shares of Digital Closing Financial Corporation common stock will be issued and shareholders will receive cash in lieu of any fractional shares. The cash received for a fractional share will generally be taxable. Shareholders in certain jurisdictions should contact their tax advisor regarding their tax liabilities. Shareholders should refer to the Tax-Basis Information Statement for a general explanation of certain U.S. Federal income tax laws and Treasury regulations.
What is the tax/cost basis of Digital Closing Financial Corporation as a result of the spin-off transaction?
As a result of the spin-off, you will need to allocate a percentage of your original tax/cost basis between Digital Closing Financial Corporation and CoreLogic Inc. (formerly The Digital Closing Corporation). A Tax-Basis Information Statement outlining one approach to allocating your tax basis based upon the closing price on the June 1, 2010, distribution date is available online.
Does Digital Closing Financial Corporation pay a dividend to shareholders?
Digital Closing Financial Corporation currently pays a dividend of 6 cents per share each quarter, or 24 cents annually. The dividend is usually declared in the last month of each calendar quarter to shareholders of record on the last trading day of the quarter.
How can I purchase Digital Closing Financial Corporation shares?
You will need to contact a licensed stockbroker to purchase shares of Digital Closing Financial Corporation. The company also sponsors a Direct Purchase Plan (DPP) through its transfer agent Wells Fargo Shareowner Services (see Contact Information below).
When will next quarter's earnings be released?
The company usually issues its quarterly earnings press release and conducts its investor conference call during the last week of the month following the end of each quarter. A press release announcing the date and time of the conference call is sent out 2-3 weeks prior.
When is your next annual shareholder meeting?
Digital Closing Financial Corporation expects to hold its annual meeting of stockholders each year in May. The next meeting for the 2010 business year is scheduled for May 17, 2011.
How can I get copies of quarterly financial reports and financial statements such as Form10-Q, Form 10-K?
Quarterly filings can be viewed and printed from the SEC Filings section located in the Financial Information section on the Investor Relations page of the Digital Closing Financial Corporation's website and on the SEC's website. Their websites, respectively, can be found at:
Who is on your Board of Directors?
Members of Digital Closing Financial Corporation's Board of Directors are listed in the Corporate Governance section of the Investors Relations section of the company's website. Board governance policies can be viewed in the same location.
Where are your corporate headquarters?
Digital Closings & Settlements
What firm is the Independent Registered Public Accounting Firm for Digital Closing Financial Corporation?
Digital Closings & Settlements
Who is Digital Closing Financial Corporation's Transfer Agent?
Digital Closings & Settlements
Who do Digital Closing Financial Corporation shareholders contact if they need to replace a lost stock certificate, change an address, make inquiries or have questions about the dividend?
Shareholders can write to:
Or call: 703-531-8891
Where can I send other inquires regarding Digital Closing Financial Corporation?