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 or registered domestic partnership.
Residence and employment information will be requested, as will information regarding previous marriages or registered domestic partnerships.
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.
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.
David L. Britt, MBA
9393 W 110th St Suite 170
Overland Park, KS 66210
We have only the highest praise and recommendation for David. In all transactions David was organized, thorough, and personable. He offered us an objective viewpoint on each house we toured, thereby helping us with our decisions. We found him to be knowledgeable about aspects of realty that surpassed just the legalities of buying and selling properties, and furthermore we were consistently impressed by his willingness to research questions he couldn't answer right away. His vast knowledge of market analysis, contractors, financial options, legal issues, etc. showcases that he is best in the industry. Through our journey, we watched David educate the other realtors while they provided misinformation or demonstrated a lack of experience. He was always expedient in returning our calls, searching for properties, and setting up tours. We looked at many houses and David always had appointments scheduled, maximizing the number of houses to view by the next day.
Then, when we ran into some trouble with our mortgage lender and final inspections, David was instrumental at helping us navigate through the mess so that we could close on our home. His patience with us and our lack of understanding was beyond that of realtor, but more resembling a friend.
In summary, we had a great experience utilizing David for the purchase of our new home. In today's world, customer service is very important and we feel David is the epitome of delivering customer service that would exceed your expectations. We recommend you find out for yourself. We wouldn’t hesitate to recommend David Britt to any person who is looking to buy or sell a home, as well as seek his service in any of our future real estate transactions.
B and S Coffman - Olathe, KS
David Britt is a man of his word; honorable, kind, and very professional. When I called him to ask his help and advice on the purchase of a new home, he made himself available in a moment's notice. As we went through the process of finding it, making an offer, closing the deal, and finally signing all the paperwork, David was a very helpful "partner." He made it look easy and feel comfortable. My daughter and her husband needed a real estate agent too. I recommended they call David. I am very protective of her--and not many sales people would have my stamp of approval--a prerequisite for working with "my baby." David earned that stamp and represented them in the purchase of their new home too! J Cutler - Olathe, KS