Statements of Information provide title companies with the specific 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.
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 Types of Information Are Requested In a Statement of Information?
The information requested is personal in nature because it is essential to avoid delays in closing the transaction.
All parties involved will be asked to provide their full name, social security number, year of birth, birthplace, and citizenship status. 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.
How is the Statement of Information Form used?
Citrus Heritage Escrow will use the Statement of Information Form to establish and confirm identity. Any issues such as child support liens, bankruptcies, judgments, etc. would be visible, and confirming the correct identity helps the Title Company to eliminate or resolve any of these matters that affect real property. It is important to note that liens and judgments are recorded against real property and individuals on a daily basis.
Why is a Statement of Information Needed?
When property is sold, the new Buyer wants to ensure he or she has clear title to the property being purchased. The title company investigates title and issues a Preliminary Report that shows the conditions on which it is willing to insure title. The Preliminary Report identifies outstanding liens the title company will not insure against without subsequent proof of payment or release of such liens. It helps the parties determine what liens need to be addressed to obtain a policy of title insurance insuring clear title.
California is the most populous state in the nation with millions of adult residents. Many of those residents have the same or similar names. In searching the public records relating to title, we encounter judgments, bankruptcies, divorces and income tax liens involving persons with similar names. The more information we have about your seller, the more effective we can be at identifying which items attach to the current owners and which do not, and the more efficient we can be at completing the title order.
Will My Information 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.
What Happens at Citrus Heritage Escrow?
During the escrow period, our title department begins researching and examining all historical records pertaining to the subject property. Barring any unusual circumstances, a commitment for title insurance is issued, indicating a clear title or listing any items which must be cleared prior to closing. The commitment is sent to you for review.
Your escrow officer follows instructions on your contract, coordinates deadlines, and gathers all necessary paperwork. For example, written requests for payoff information (called “demands”) are sent to the Seller’s mortgage company and any other lien holders.
When choosing an escrow company there can be many important factors to evaluate. Fees, location, staff and even recommendations from friends and colleagues are all things to consider. With Citrus Heritage Escrow by your side, you can rest assured that when you receive your settlement check, you’ve gained the maximum benefit from your home sale or purchase.
Call us today with any questions or concerns. Our professional Escrow Agents will help you through this exciting yet confusing process. (951) 335-7200