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 or registered domestic
partnership.
Residence and employment
information will be requested, as will information regarding previous marriages
or registered domestic partnerships.
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.