A title insurance underwriter is a professional who is employed in title insurance and works to do the title check to validate the ownership and the line of title of the property involved in a purchase transaction or a mortgage refinance. An underwriter is an entity that authorizes and issues authority for its agents to write title insurance policies. The underwriter assumes financial risk and actually ensures the property against insurance and defects.
The title underwriters will do a record property search and prepare a title commitment which outlines what the title policy will cover with exception of any liens or encumbrances that will appear against the title once the actual policy is issued. It contains requirements which must be fulfilled before the policy will be issued.
In this article, we will discuss the major role and responsibility of title insurance underwriter in great detail.
- The main focus of the job of a title insurance underwriter is to ensure that there is nothing in the ownership chain that will put the current ownership in question. The underwriter will search whether all the transfer of property were done legally and that no acts of fraud or forgery and no omitted heirs are involved in the transactions.
- The national default title services include checking whether there are existing liens for the property
- The title insurance underwriter is responsible to ensure that the title is, indeed, insurable by the title insurance company and that based on current public records.
- They provide their professional opinion as to the status of the title and to be ready to defend the owner by some undiscovered legal issues with regards to the title.
- They check public documents – deed, wills, birth and marriage certificates etc. as they did a title search. After the title search, the title insurance underwriter may also list down exclusion to the policy, which may include easements, encroachments, zoning laws and other related government regulation and restriction
The financial strength of the underwriter is crucial in choosing a title insurer since that will determine the ability and willingness of the underwriters to pay claims that arise. Check out here to learn what basically is fine art insurance and what does underwriter do in title insurance in great detail.