What is Title Insurance?
Title insurance helps protect homebuyers from unexpected issues associated with different types of homeownerships. Essentially, there is a transaction record of when a property is bought or sold. With title insurance, the title company searches through records, looking for issues and developing plans to remedy those issues. Once the search is complete, the underwriter will calculate the insurability of the property. Having a Florida real estate lawyer can help with title insurance and navigating the home selling and buying process. The Florida real estate lawyers at Nasseh Sirounis Law are experienced in assisting clients in getting insurance for an upcoming home sale transaction.
What is Title Insurance?
Title insurance is a type of insurance used to protect mortgage lenders and homeowners against problems concerning legal ownership of a property. This type of insurance policy pays for legal fees associated with any disputes over title ownership. Ultimately, title insurance helps protect you against any past title discrepancies from the seller or previous owner that get uncovered during or after purchasing the home.
What Does Title Insurance Cover?
Title insurance helps cover any underlying issues with the home’s title and protects homebuyers from anything that may have been missed during the home-buying process. Though the title company conducts a run of public records to search for any liens or ownership disputes, things can get overlooked. Title insurance ultimately protects you should something be missed during the title search process.
What Are Some Common Title Issues?
It is the title company’s role to check all documents and public records for any issues or concerns with the ownership of a property. However, though not often, there are times when title issues are discovered. Some common title issues include:
- Title forgeries
- Back taxes
- Filing errors
- Unknown heirs claiming ownership
- Conflicting wills
- Undocumented easements
Speaking with real estate lawyers Florida can help you better understand the differences in title issues and which ones you might expect to have during a real estate transaction.
What are the Types of Title Insurance?
The two types of title insurance include lender’s insurance and owner’s/buyer’s insurance. Both provide the same amount of protection during the title search but cover different parties with financial interests in the property.
Lender’s title insurance protects the financial institution providing the mortgage against title claims that put their stake in your home at risk. During the loan-approval process, a lender will often require the borrower to purchase title insurance on the lender’s behalf. Owner’s/buyer’s title insurance protects the homeowner in the event of any claims against their home. Though not always required for the homebuyer to purchase this type of insurance, it’s highly recommended and can be paid for by the seller at the home’s closing.
Speak with an attorney specializing in real estate law Florida to learn more about the differences in title insurance options.
How Much Does Title Insurance Cost?
Title insurance often ranges in price, costing roughly between $500 and $3,500 for each policy. Factors affecting the cost include insurance provider, location, the purchase price of the home, and the extent of coverage. However, in Florida, all title companies must provide the same level of coverage at the same price. The title insurance premium is a one-time charge paid for at the home’s closing.
Do I Need Title Insurance?
In most cases, buyers are not required to have their own insurance policy. However, it is highly recommended to protect you against future legal costs. For example, you purchase the home, get all moved in, and six months later a contractor comes to your home with proof of an undocumented contractor’s line worth $50,000. Since you are now the owner, you are responsible for the lien and all legal costs associated to clear the title. Title insurance will protect you in this scenario and any related costs.
How an Attorney Can Help You
A real estate lawyer Florida can help with any legal matter related to the sale or purchase. Hiring a Florida real estate attorney that operates a title company helps keep all of your property transactions with one entity. In addition, Florida real estate attorneys can help with title insurance, drawing up legal paperwork, and conducting any negotiations needed during the transaction.
If you plan on buying or selling a home soon, consult with a real estate attorney Florida to learn more about title insurance and your options. Call a FL real estate attorney at Nasseh Sirounis Law to schedule a consultation and discuss your options regarding your upcoming property transaction.