Introduction
When it comes to buying or selling a home, there are numerous documents that need to be filled out. One such document is called a statement of information. This article aims to shed light on this important aspect of the real estate transaction process. We will explore the purpose of a statement of information and answer some commonly asked questions. So, let's dive in!
What's in a Name?
A title company plays a crucial role in uncovering any issues that may affect the title to real property. Statements of Information are invaluable in helping them differentiate between buyers, sellers, and borrowers with similar names. By accurately identifying the parties involved, title companies can disregard any judgments, liens, or other matters that do not pertain to the transaction at hand.
Understanding a Statement of Information
A Statement of Information is a standard form that is typically requested from the buyer, seller, and borrower when seeking title insurance. Its purpose is to provide the title company with the necessary information to examine documents and determine which matters affect the property and which do not. This ensures that the title policy covers the property accurately, and all relevant parties are safeguarded.
How Does a Statement of Information Help?
Every day, various documents, such as liens, court decrees, and bankruptcies, are recorded in relation to real property. When a title company comes across a recorded document with a name similar to those involved in a specific transaction, they must assess whether it affects the parties being insured. By completing a Statement of Information diligently, the title company can differentiate between parties with similar names, thus expediting the process while ensuring the accuracy of the title policy.
Information Requested in a Statement of Information
The information requested in a Statement of Information is personal but essential to avoid any delays in closing the transaction. You (and your spouse, if applicable) will be required to provide your full name, social security number, year of birth, birthplace, and citizenship information. If you are married, additional details about your marriage will be requested. The form may also inquire about your residence, employment information, and any previous marriages (if applicable).
Keeping Your Information Confidential
Rest assured that the information you provide in the Statement of Information is kept completely confidential. It is solely used by the title company to complete the necessary search of records before issuing a policy of title insurance. Your privacy is of utmost importance.
The Consequences of Not Providing a Statement of Information
Failing to provide the requested Statement of Information can have serious implications. It can hinder the search and examination process, leading to delays in obtaining your title policy. In some cases, it may even prevent the completion of the escrow. Without the necessary information, the title company will have to list any potential issues, such as judgments or liens, as exceptions to the coverage, which may not be acceptable to lenders.
In Conclusion
Title companies strive to identify any known risks that could potentially affect your property. By accurately completing a Statement of Information, you allow the title company to provide you with the necessary services while ensuring the confidentiality of your personal information. So, remember to furnish all the requested details and embark on your home buying or selling journey with confidence.
Article by CLTA - Back to helpful first-time homebuyer tips and information