New homeowners want to focus on buying new furniture for the living room or painting walls, not worrying about having to pay a bill left behind by a previous owner. Lenders require a title insurance policy to protect their investment. You should have a policy to protect your investment as well. For a one-time fee paid at closing, an owner’s policy can protect your property rights for as long as you or your heirs own the property. It is important to consider purchasing title insurance at the time you buy your home. Here are a few tips about buying Florida title insurance for your property before you buy your home.

Understanding A Property Title Document

A property title is a document that shows legal proof of ownership. During the mortgage transaction, the title is handed over to the buyer at the time of closing after all contracts are signed and the seller receives payment for the sale. It is important to conduct an examination of the title to the property before you buy your house. It is also just as important to consider purchasing title insurance before the closing process.

Protecting Your Property Rights

Request a tile search in connection with your purchase of the home. A title search consists of conducting a search of the public land records on the property you are about to purchase. The search reveals the history of the property. The purpose is to make sure that the real property’s legal owner confirms that claims or leans do not exist on the property. If there are any defects in the title of the property and the tile is deemed defective, the title insurer would then seek to eliminate any of the title issues discovered before the closing takes place.

Title Insurance Will Protect Your Investment When Buying A Home

An owner’s policy protects you from:

  • Unpaid mortgages
  • Unpaid property taxes.
  • Child support liens.
  • Missing heirs who could claim the property belongs to him or her.
  • Missed easements or rights of way that could limit your use of the property.

An owner’s policy protects the homebuyer. A loan policy protects the lender. Most lenders usually require a loan policy when they issue you a loan. The loan policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off. An owner’s policy, usually issued in the amount of the real estate purchase, provides protection for as long as you or your heirs have an interest in the property.

What’s The Title Insurance Representative’s Responsibility At A Closing?

The title insurance representative is responsible for the title search and for providing the buyer with proof of title. Most title representatives will also help prepare the parties, but that responsibility rests with the agents representing them. Purchasing this title insurance policy is a one-time fee that you would pay, and the cost varies by state. In Florida, title insurance costs are usually based on the value of the property being insured. In addition to the help of the title insurance representative, it is wise to have the help of a real estate lawyer to ensure that you are properly protected.

Why Do You Need A Real Estate Closing Attorney In Florida?

A closing attorney is a person who is legally permitted to prepare, analyze, and review all the documents related to the sale and purchase of your home. The purpose of a closing attorney is to help their client land the best possible outcome when buying or selling property. They are present at the closing of your real estate deal. A title company is a third party hired to conduct research and insure the title of the property you’re buying. And just because a title company issues a title insurance policy, it doesn’t mean there aren’t any oversights or issues with the chain of title.

Without the protection of title insurance, you run the risk that someone may come along, sometime in the future claiming some type of interest in your property. Without having a title insurance policy, these types of scenarios may force you to pay legal costs to defend your title validity.


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About Estevez Law Group, P.A.

Helping clients with real estate, commercial real estate transactions, residential property purchases and sales, estate planning, and more! Skillful legal representation can simplify complex real estate transactions and solve problems that frustrate all parties involved. At the Estevez Law Group, P.A. our boutique real estate law firm and title agency assists clients with all types of residential and commercial property matters.
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