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.
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.
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.
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.
Article by CLTA