Why Title Insurance?

Owning real estate is one of the most precious values of freedom in this country. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions on your home.

Title insurance is issued after a careful examination of the public records. But even the most thorough search cannot absolutely assure that no title faults are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.

Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life, or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults but does protect you from risks or undiscovered interests. Another difference is that you pay a one-time premium for a policy that remains effective until the property is sold to a new owner – even if that doesn’t occur for decades.

A lender’s policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender’s interest in certain matters which may exist, but may not be known at the time of the sale.

This policy only protects the lender’s interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner’s policy.

An owner’s policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.

Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy.

Payment of legal costs if the title insurer has to defend your title against a covered claim.

Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.

Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy that you provide the purchaser is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses and could help you close your deal.

The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends on the purchase price of the property and the policy amount must be equal to the purchase price.

  • Undisclosed heirs
  • Forged deeds, mortgages, wills, releases and other documents
  • False impersonation of the true landowner
  • Deeds by minors
  • Documents executed by a revoked or expired Power of Attorney
  • False affidavits of death or heirship
  • Probate matters
  • Fraud
  • Deeds and wills by persons of unsound mind
  • Conveyances by undisclosed divorced spouses
  • Rights of divorced parties
  • Deeds by persons falsely representing their marital status
  • Adverse possession
  • Defective acknowledgements due to improper or expired notarization
  • Forfeitures of real property due to criminal acts
  • Mistakes and omissions resulting in improper abstracting
  • Errors in tax records
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Life of an Escrow

It all begins with the offer and acceptance skillfully negotiated by the real estate agents representing Buyer and Seller.

Tenders a written offer to purchase (or accepts the Seller’s counter -offer) accompanied by a good faith deposit amount known as Earnest Money.

Approves and signs the escrow instructions and other related instruments required to complete the transaction.

Approve the preliminary report or title commitment and any property disclosure or inspection report required in the purchase and sale agreement.

Approves and signs new loan documents and fulfils any remaining conditions contained in the contract, lender’s instructions and/or the escrow instructions.

Deposit funds necessary to close the escrow.

Approve any changes by signing amendments to the escrow instructions.

Accepts the new loan application and other related documents from the Buyer(s) and begins the qualification process.

Orders and reviews the property appraisal, credit report, verification of employment, verification of deposit(s), preliminary report and other related information.

Submit the entire package to the loan committee and/or underwriters for approval. When approved, loan conditions and title insurance requirements are established.

Informs Buyer(s) of loan approval terms, commitment expiration date and provides a good faith estimate of the closing costs.

Deposit the new loan documents and instructions with the settlement agent for Buyer’s approval and signature.

Reviews and approves the executed loan package and coordinates the loan funding with the escrow officer.

Receive an order for escrow and title services.

Sends the order to the Title Department who prepares the preliminary report or title commitment for the subject property.

Acts as the impartial “stakeholder” or depository, in a fiduciary capacity, for all documents and monies required to complete the transaction per written instructions of the principals.

Prepare the escrow instructions and required documents in accordance with terms of the sale.

With the authorization from the real estate agent or principal, orders demand on existing deeds of trust and liens or judgments, if any. For assumption or subject to loan.

Reviews documents received in the escrow: preliminary report or title commitment, payoff or assumption statements, new loan package and other related instruments.

Review the conditions in the lender’s instructions including the hazard and title insurance requirements.

Present the documents, statements, loan package(s), estimated closing statements and other related documents to the principal(s) for approval and signature, and requests the balance of the buyer’s funds.

Receive the proceeds of the loan(s) from the lender(s).

Determines when the transaction will be in the position to close and advises the parties.

Assisted by title personnel, records the deed, deed of trust and other documents required to complete the transaction with the County Recorder. Depending on the property location, the recordation of the documents may occur after the closing date.

Close the transaction by preparing the final settlement statements, disbursing the proceeds to the Seller, paying off the existing encumbrances and other obligations.

Deliver the appropriate statements, funds and remaining documents to the principals, agents and/or lenders. Prepares the title insurance policies and deliver them to the Buyers.

Accept Buyer’s Offer to Purchase and initial good faith deposit to open escrow.

Submit documents and information to escrow holder, such as: addresses of lien holders, tax receipts, equipment warranties, home warranty contracts, any leases and/or rental agreements.

Approves and signs the escrow instructions, grant deed and other related documents required to complete the transaction.

Repairs to the property as required by the terms of the purchase and sale agreement (Deposit Receipt).

Fulfills any remaining conditions specified in the contract and/or escrow instructions; approves the payoff demands and/or beneficiary’s statements.

Approve any final changes by signing amendments to the escrow instructions or contract.

Receive an order for title service.

Examines the public records affecting the real property and is sues a preliminary report or title commitment.

Determines the requirements and documents needed to complete the transaction and advises the escrow settlement officer and/or agents.

Reviews and approves the signed documents, releases and the order for title insurance, prior to the closing date.

Records the signed documents with the County Recorder’s office and prepares to issue the title insurance policies.

Escrow / Closing Fees

  • $500.00 • Closing Fee – Generally split between the Buyer and Seller unless otherwise instructed

  • $350.00 • Refinance Closing Fee

  • $150.00 • Courtesy Signing Fee

  • $200.00 • De-Title Mobile Home

  • $7.00 • Recording Fee-per page

  • $11.00 • Non-Standard Recording Fee

  • $67.00 • Reconveyance Fee

Title Insurance Fees

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Contact First Title of Montana

Derek Elliott
Derek ElliottOwner / Title Manager
Call or email Derek today for all of your title needs.


Jessica Elliott
Jessica ElliottOwner / Escrow Manager
Call or email Jessica today for all of your escrow questions.


First Title of Montana

138 East Center Street
Suite B

Kalispell, Montana 59901

Call Today 406.755.5411
Fax 406.755.5412
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