Pillar 3: Securing Electronic Data

The core of Pillar 3 involves maintaining the safety of electronic information. As title agents, we collect Nonpublic Personal Information (NPI) from our clients and other involved parties, including Social Security numbers and drivers license copies. Protecting this sensitive data is crucial, and any title agency you consider working with should willingly share their methods for doing so. Here are five primary ALTA Best Practices for settlement agents:

Background Checks for Anyone With Access to NPI

Our stringent hiring practices ensure the trustworthy nature of our employees. In addition to thorough credit and criminal background inquiries, a trained professional performs a personal character assessment on each candidate. We repeat background assessments every three years to uphold our high standards, and we also develop relationships with all our staff to know them beyond facts and figures.

Only Authorized Employees Have Access to NPI

We have numerous security protocols to protect NPI:

•Employees follow "clean desk" policies to prevent casual observance of NPI documents.

•All paper documents are scanned for storage and then shredded.

•Access to sensitive information requires a username and a complex password, which is changed frequently.

•Systems to detect and prevent network intrusions, anti-virus software and other security controls protect our internal network.

Have a Thorough Disaster Recovery Plan

We have a detailed recovery plan to return to full operations within 24 hours of any emergency situation. Documentation is available for review upon request.

Regularly Seek Out and Identify Risks to NPI

Our quarterly reviews of potential internal and external threats allow us to update procedures and protocols at the first sign of vulnerability.

Ensure That Outsourced Services Meet the Company's Own Standards

When outsourcing services, such as tax or county searches, we ensure that subcontractors follow our rigorous standards and have evidence available for client review.

Alpha-Omega Title, by God's grace, is one of the most trusted title agencies in Florida, having a 99.99% accuracy rate. Perfection doesn't exist for any company, but it's a standard we always strive for and have an impeccable track record because of it. 

Title Insurance for Distressed Properties

 

With convoluted processes and stacks of documents to sign, purchasing a home can prove to be a complicated matter. Even more complex are the closings of foreclosures and short sales.

With every challenge the closing process presents, it's important that everyone involved, from the lender and title agent to the buyer and investor, understands the soundest industry methods for guaranteeing a smooth closing. An accurate handle on industry practices helps all parties involved avoid the headache and expense of title insurance claims down the line. This is particularly true of distressed properties.

If you decide to invest in a distressed property, it's essential to have a deep understanding of how title insurance works. It starts out simply enough, like any real estate transaction with a buyer and a seller. A price is negotiated for the property, and contract terms are set in place. The buyer then purchases title insurance to protect the lender. After the contract is negotiated in a short sale, a mortgage lender must approve it before it becomes a solidified deal.

If the property in question is bank-owned, the homebuyer presents an “as is” real estate purchase contract to the lender representative. The listing agent then submits it to the bank who typically puts forth a counter-offer. In particular instances such as these, it's important to have a title agent oversee all of the details during the closing. The title agent communicates with the purchaser, real estate agent, the bank and the mortgage lender.  The most significant function of the title agency is to research the property's ownership history. This includes looking into the “chain of title,” which includes previous owners, as well as any liens, encumbrances or claims.

Purchasing a distressed property carries a higher risk to the buyer and title company insuring purchase. A buyer should always consider obtaining title insurance at the time of purchase and never afterwards. The owner's title insurance policy is an indemnity against loss or damage up to the insured price (which is almost always the purchase price) according to the terms of said policy. 

Title insurance is a great value. It is a one-time purchase and lasts as long as the buyer owns the property according to the terms of the policy. Alpha-Omega Title, by God's grace, is one of the most trusted title agencies in Florida, having a 99.99% accuracy rate. Perfection doesn't exist for any company, but it’s a standard we always strive for and have an impeccable track record because of it.