The opinion and guaranty of title and validity of mortgage
The opinion and guaranty of title and of validity of mortgage is a document that serves two purposes. Firstly it gives you a legal opinion on whether the seller of the property is the rightful owner of the property in question or not. There is made an examination of the public documents to ascertain the title of the mortgage. It includes the period from abstract ownership of the property to the time when there were legal and recorded owners of the property. The insurer makes sure that the property that is being given for mortgage is free of any lien and has not been previously mortgaged elsewhere. This portion of the document is signed by an officer or the member of the insurance company.
The second portion of the document is the guaranty of validity of mortgage and it is also to ensure the validity of the mortgage that is being given by the borrower in order to secure a loan amount. It is the duty of the insurer to make sure that the mortgage is in accordance with the law and that there is no other liability associated with the mortgage. The liability could be in the form of lien, encumbrances or any type of objection in the ownership of the property. Also the title insurer should make sure that the amount that is paid to the mortgagee is not in excess of the actual debt that is pending on the mortgagee. The title insurer must take into consideration all the aspects before actually signing the opinion and guaranty.