Purchasing a new home or piece of real estate is a major investment that can involve significant financial risk if not handled carefully.
Title insurance protects both buyer and seller from problems with an ownership title that may have occurred before the transfer of property.
When does title insurance protect you?
Title insurance can protect you financially from pre-existing issues involving third parties having a claim to the property you intend to buy. Examples of these issues include unpaid property taxes, unknown heirs to the property and liens on the property. These issues may arise for many reasons, including false or missing records, forgery or identity theft.
How does title insurance protect you?
Title insurance protects you from loss due to these claims after the completion of your purchase. Without title insurance, claims to your property can result in significant loss or even the loss of the home.
Where do you obtain title insurance?
Purchase title insurance for real estate transactions through a title insurance company. A title insurance agent will perform a thorough title search and notify the buyer of any problems before they finalize the purchase of the property. The cost of title insurance is often included in the closing costs of the property purchase.
Florida mandates that all real estate transactions include title insurance. While all real estate transactions must include title insurance, Florida law does not dictate the amount of coverage required. Work with your real estate attorney to help determine what type of policy is appropriate for your transaction.