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17

Understanding ID Affidavit

What’s in a name? When a title company seeks to uncover

matters affecting title to real property, the answer is, “Quite

a bit.”

An ID Affidavit provides title companies with the information

they need to distinguish the buyers and sellers of real

property from others with similar names. After identifying

the true buyers and sellers, title companies may disregard

the judgments, liens or other matters on the public records

under similar names.

To help you better understand this sensitive subject, below

are answers to common questions relating to ID Affidavits.

What is an ID Affidavit?

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 an

ID Affidavit

Do?

Every day documents affecting real property – liens, court

decrees, bankruptcies – are recorded. Whenever a title

company uncovers a recorded document in which the

name is the same or similar to that of the buyer, seller or

borrower in a title transaction, the title company must ask,

“Does this document affect the parties we are insuring?”

Because if it does, it affects title to the property and would,

therefore, be listed as an exception from coverage under the

title policy.

A properly completed ID Affidavit will allow the title

company to differentiate between parties with the same

or similar names when searching documents recorded

by name. This protects all parties involved and allows the

title company to competently carry out its duties without

unnecessary delay.

ID AFFIDAVIT - WHY IS IT NEEDED?