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Statements of Information

By Terry Michaud OfficeNovember 08, 2017
Title InsuranceDocumentationProperty Purchase

What's in a name? When a title company seeks to uncover matters affecting title to real property, the answer is, "Quite a bit."

Understanding Statements of Information

What They Are

Statements of Information are forms routinely requested from:

  • Buyers
  • Sellers
  • Borrowers

These forms provide title companies with information needed to distinguish the true buyers and sellers from others with similar names.

Purpose and Function

Primary Goals

  1. Help title companies examine documents effectively
  2. Allow companies to disregard matters not affecting the property
  3. Identify matters that actually apply to other people

Daily Challenges

Every day, various documents are recorded that affect real property:

  • Liens
  • Court decrees
  • Bankruptcies

When names match or are similar, title companies must determine:

  • If documents affect current transaction
  • Which parties are actually involved
  • What exceptions need listing

Information Requested

Personal Information

  • Full name
  • Social security number
  • Year of birth
  • Birthplace
  • Citizenship information

Marriage Information

  • Marriage date and place
  • Registered domestic partnership details

Additional Details

  • Residence information
  • Employment information
  • Previous marriage information

Confidentiality Assurance

Information Protection

  • Completely confidential
  • For title company use only
  • Used solely for search/examination

Consequences of Non-Compliance

Potential Issues

  1. Delays

    • Hindered search capabilities
    • Slower examination process
    • Delayed policy production

  2. Serious Problems

    • May prohibit escrow closing
    • Could affect lender requirements
    • Might create coverage exceptions

Impact on Title Policy

Without Statement of Information

Title company may need to list as exceptions:

  • Judgments
  • Liens
  • Other matters These exceptions often unacceptable to lenders

Benefits of Compliance

Efficient Processing

  • Helps identify known risks
  • Facilitates correct title transfer
  • Protects homebuyer interests

Smooth Transaction

  • Reduces delays
  • Prevents complications
  • Ensures proper coverage

Conclusion

Key Points

  1. Essential for title search
  2. Protects all parties
  3. Maintains confidentiality
  4. Facilitates transaction

By properly completing a Statement of Information, you allow the title company to provide efficient service while maintaining confidentiality.