When purchasing or selling a property, the title company plays a crucial role in ensuring that the transaction proceeds smoothly. A significant part of this process involves completing a Statement of Information (SOI), which helps the title company distinguish between individuals with similar names. This step is essential to protect all parties involved and ensure a clean title transfer.
What Is a Statement of Information?
A Statement of Information is a form requested by the title company from buyers, sellers, and borrowers when seeking title insurance. It contains personal details that allow the title company to differentiate the actual buyers and sellers from others with the same or similar names. This way, the company can accurately verify which documents and records affect the property and which do not.
Why Is a Statement of Information Important?
Various documents—like liens, court judgments, and bankruptcies—are recorded daily in real estate transactions. When the title company finds a record with a name matching or similar to that of a party in the transaction, it needs to determine if it pertains to the property in question.
If the record affects the title, it may be listed as an exception under the title policy. A properly completed Statement of Information allows the title company to correctly match documents to the right individuals, helping them rule out unrelated matters and preventing delays.
What Information Does a Statement of Information Include?
The SOI requests specific personal information, which may seem sensitive but is necessary to avoid delays and ensure accuracy. The details asked for include:
- Full name (and spouse’s name if applicable)
- Social Security number
- Date of birth and place of birth
- Citizenship status
- Information about marriage or registered domestic partnerships, including dates and locations
- Residential and employment history
- Details on previous marriages or domestic partnerships
While the information is personal, the title company must distinguish you from others with similar names. This ensures the title search is thorough and accurate, ultimately protecting your interest in the property.
Is My Information Kept Confidential?
Absolutely. The information provided in the Statement of Information is kept strictly confidential and is used solely by the title company to complete the title search. This confidentiality ensures that your details are protected throughout the process.
What Happens if the Statement of Information Is Not Provided?
Failing to provide a completed Statement of Information can lead to complications in the title search process. At a minimum, it may slow down the issuance of your title policy, delaying the closing process. In the worst-case scenario, the title company may have to include exceptions in the title policy for liens, judgments, or other matters that they cannot confirm are unrelated to you.
Such exceptions can be problematic, as most lenders will not approve a loan unless they have a clear title policy. This could potentially halt the closing of your escrow and complicate the entire transaction.
Title companies strive to identify and mitigate any risks affecting your property to facilitate a smooth and secure transfer of ownership. By completing the Statement of Information accurately, you enable the title company to conduct a thorough title search, protecting your investment and ensuring a seamless closing process—all while maintaining your confidentiality.
Make sure to complete your Statement of Information promptly to avoid delays and guarantee a successful real estate transaction.