What's in a Name? The Purpose of a Statement of Information in Title Insurance
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 with a name the same or similar to that of a party being insured, they must determine if the document affects the property. A properly completed Statement of Information allows the title company to differentiate between parties with the same or similar names when searching documents recorded by name. This protects all parties and allows the title company to competently carry out its duties without unnecessary delay.
What types of information are requested?
- Full name and social security number
- Year of birth, birthplace, and information on citizenship
- Date and place of marriage or registered domestic partnership
- Residence and employment information
- Information regarding previous marriages or registered domestic partnerships
What happens if the Statement is not provided?
At best, failure to provide the requested Statement of Information will hinder the search and examination capabilities of the title company, causing delay. At worst, failure to provide the information requested could prohibit the close of your escrow. Without a Statement of Information, the title company might have to list as exceptions from coverage judgments, liens, or other matters which may affect the property, which is generally unacceptable to most lenders.Conclusion
Title companies make every attempt to identify known risks and efficiently transfer title to protect your interests. By properly completing a Statement of Information, you allow the title company to provide the service you need with the assurance of confidentiality.Article by CLTA
