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Title insurance will make sure you keep your home!
Purchasing your home is an important decision probably the single biggest investment you will ever make. But how does one know that the property they purchased has a clear title? Because unknown problems can be hidden in the history of a property's title, homeowners pay a title insurance company for title insurance. Before closing on the house, you'll want to know that no other individual or entity has a right, lien or claim to the property. Determining that your rights and interests to the property are clear is the business of a title insurance company.
Title insurance companies provide title insurance. Title insurance is an insurance policy that guarantees the property title is free from the problems of hidden liens and claims. For a modest, one-time title insurance premium, you will receive continuous title insurance protection in an amount equal to the purchase price of the property or its current market value. This premium typically includes your "owners" policy as well as the "lenders" policy.
The title insurance company searches public records for the property to make sure there are no problems in the title's ownership and history. The fee for title insurance is usually included in the itemization of closing costs from the lender and is a one-time fee. Possible hidden title problems your title insurance company may find can include:
Title insurance pays for title companies to search for problems in a property's title by examining public records. Title insurance companies routinely search public records for:
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Deeds
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Mortgages
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Wills
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Divorce Decrees
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Court Judgements
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Tax Records
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Liens
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Claims
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Maps
By searching the history of the property's title, the title insurance company can assure the new owner of clear ownership to their new property and that no outstanding debts or unknown ownership issues are associated with their new home.
In addition, besides securing a good search on a property's title, the title insurance company will insure the property owner as long as s/he owns the property. Therefore, if a problem arises at a later date, the title insurance policy will cover legal fees in defense of a claim against your property that is covered under the title policy. Typically, your title insurance will protect you from loss:
Your title insurance owner's policy will describe the property and outline any recorded limitations on your ownership. It will also set forth the title insurance company's responsibilities should any claim covered by the policy terms arise.
Check our Heart of Florida Realty Concierge Service for title insurance.
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