Title Insurance
What Is Title Insurance?
When an individual purchases a piece of property, he or she should receive the title to that property. You may be aware that it is advisable to purchase title insurance when buying a piece of real estate. The reason for this practice is to protect both buyers and lenders from defects to a title that could result in the owner of the property incurring damages to clear the title or render the sale of the property void.
Types of Title Insurance: Owner’s Policy and Lender’s Policy
The two types of title insurance include; owner’s and lender’s title insurance. Owner’s title insurance protects individuals who purchase a piece of property without financing or who have financed a portion of their property. Lender’s title insurance protects the interests of real estate lenders.
Why Do I Need Title Insurance?
Insurance companies offer both owner’s and lender’s title insurance policies for the same reason. Both buyers and lenders can potentially incur damages due to unknown liens or judgments against the property of the seller, forged deeds, or reproduced titles, to name a few. These problems and others can cause a title to be revoked, or the voided sale of the property after a transaction has taken place. Buyers or sellers of real estate can be devastated financially by these unfortunate circumstances, and title insurance helps to protect a buyer or lender from the losses associated with a faulty title.
Does My Bank Require Title Insurance?
If you are financing a portion of your purchase, your lender could require you to not only have a title search performed by a title insurance attorney but also need you to purchase a certain amount of title insurance.
How Much Insurance Do I Need?
Often people ask themselves, “Do I really need title insurance?” and if so, “How much insurance do I need?” You can only answer the first question based on various factors, including the amount of risk you are willing to assume. A title insurance attorney performs an in-depth title search to ensure that your title is not defective in any way. Moreover, a title insurance attorney will help you determine the appropriate amount of title insurance you should obtain because it depends on your personal preference.
Where Should I Go To Obtain Title Insurance?
Our doors are always open! Merilien Law is a certified title company that works with one of the best title insurance underwriters operating in Florida. Our attorney will perform an in-depth title search, checking public records, past sales, court databases, etc. to ensure that the property can be purchased. We work with the top title insurance companies to find the perfect title insurance policy for you.