What is an Opinion of Title?
The opinion of title refers to a lawful opinion that ensures if the title is valid while investing in a property. Sometimes, the opinion of title is issued in co-existence of an insuring title organization.
How is an Opinion of Title Used?
Usually, attorneys issue opinion of title. Title organizations issue a special report known as a title report by considering the attorneys opinion. A title report refers to a legit document serves several purposes. However, it is mostly used at the time of buying a property, authenticating a lien application, and doing research for ownership.
Example of a Title Report
A title report, usually created at the time of buying a home, consists of different levels of information. It exhibits the existing ownership concerned with the property, the form in which it is kept, and hindrances, if any, that are not in the property’s favor, and could make it difficult for a lending party to finance a mortgage. In case, there is a difference in the mailing address and the legit address location, it needs to be included in the title report as well. It also involves including the legal description, parcel number, latitude and longitude. Followed by easements, if any, the title report will also include any accompanying drawbacks. There are several lending parties that ask for more information like tax certifications that include all sorts of property taxes associated with the property, and any outstanding balances that need to be paid. There are provinces that ask for another document known as a closing protection letter to be issued by an attorney. This letter authenticates that the analysis of the title policy, and the issuance of the opinion of title, done by the attorney is carried out in the right manner. Also, it ensures that the attorney takes the responsibility of bearing any lawful claims in case there are some flaws in the reporting. Such flaws may include anything varying from improper recording of liens to transfer of ownership without being authorized to do the same. They are also accountable for probate stating that the estates can be openly transferred, and the lawful subjects can be easily resolved. The title company, at the time of offering the title report, charges fees in return for providing the lawful document that also includes a title insurance request. Also, they collect the title insurance premium for securing the attorney and the title company from incurring any losses or excessive costs. Besides mortgage, there can be other reasons for issuing the opinion of title. It is important to have title opinions for validating easements, encroachments, oil deposits and mineral rights. Also, operations like drilling, acquisition, etc. also require the opinion of title.
