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.

Are you ready for the AgorillaREALTOR experience? Remember: "It's a jungle out there; why monkey around when
you can hire Agorilla"  Let's get started!

Reference: Article by CLTA. Retrieved from iHouse, 10/24/08. Written in whole.
Statements of Information - Title & Escrow
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