Title insurance is a form of insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.
Why Title Insurances is necessary
When you buy a home, you are given a title to the property which should mean you have full legal ownership, but what if there is a hidden mistake in a deed, will or mortgage? This mistake could allow someone else to claim your property and it will be legal. Protecting a new home buyer against loss if a defect is found in your title can rest your mind and save you time and money. Most importantly, it can save your home. Title insurance provides significant value to homeowners and title companies, such as Florida National Title fixes most problems without the home buyer even being aware they existed.
How Title Insurance differs from other types of Insurance
Florida National Title will perform a title search through public records to ensure there are no judgments liens, taxes or assessments that affect ownership of the property. Title insurance differs from other types of insurance coverage because it emphasizes risk prevention rather than risk assumption. In other words, title insurance insures against events that occurred in the past. This coverage helps avoid claims and losses in real estate transactions. The majority of the title insurance premium goes towards the research Florida National Title does to ensure there are no matters affecting the home buyer getting their title free and clear.
Types of Title Insurance
- The Lender’s Policy only protects the lender’s interest in a property should a problem arise. It will not pay the homeowner’s legal expenses if there is a title problem. An owner’s title insurance policy will be needed to protect the homeowner.
- Owner’s title insurance is issued in the amount of the purchase. Only this type of title policy protects the homeowner if a problem arises that was not found during the title search.
What does and owner’s policy cover?
Standard coverage handles risks, such as:
- Lack of competency, capacity or legal authority of a party;
- Undisclosed (but recorded) prior mortgage or lien;
- Undisclosed (but recorded) easement or use restrictions;
- Erroneous or inadequate legal description;
- Lack of right of access;
- Deed not joined in by a necessary party; and
- Deed not properly recorded.
Florida National Title
Florida National Title are experts with all things title-related and can help you understand the benefits of title insurance, why it is necessary and how to open a policy. We will help you navigate through the steps of buying title insurance. Florida National Title has years of experience guiding Florida homebuyers through the real estate purchase experience and has helped them solve the problems that come up in the process. We will decipher the “legalese” and explain what we need and why we need it each step of the way. The blogs to follow will address specific issues to guide buyers to better understand the process and to help them avoid many of the pitfalls. Call us at (561)408-0729 or visit us at.
Florida National Title Services, LLC
250 S. Central Blvd., Suite 101
Jupiter, Florida 33458
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