|
Completing
A Statement Of Information
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. Residence and employment information will be
requested, as will information regarding previous marriages
if you are divorced.
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.
Article by CLTA
South
Bay Brokers
1640 So. Pacific Coast Hwy.
Redondo Beach, CA 90277
(310) 375-0583
(310) 375-9616 Fax
2501 No. Sepulveda Blvd., 2nd Floor
Manhattan Beach, CA 90266
(310) 546-7611
(310) 545-0515 Fax
|
