Buying real estate is an exciting, life changing event. It also requires a checklist of items that needs to be accomplished. Title search is one of these elements, and to ensure that the buyer is protected, purchasing title insurance is an integral part of the process.
What is a Title Search?
When you purchase real estate in Florida, you buy everything that comes with it. When a seller transfers ownership of the property to the buyer, he or she needs to ensure that the property is in good standing and free of encumbrances and liens. Trained and experienced title insurance agents perform title searches which reveal any problems such as unpaid taxes, unsatisfied mortgages, judgments against the seller, defective or missing documents, construction claims, and the like. However, it isn’t enough to just have the search done. As an added layer of protection, title insurance should be purchased.
Types of Title Insurance
There are two types of title insurance: one protects the lender (loan policy) and the other protects the buyer (owner’s policy). In Florida, all federally insured lenders will require a buyer to have at least a loan policy. Although an owner’s policy is not required to move ahead with the closing, solely having a loan policy does not protect the buyer from any issues that arise after the purchase. An owner’s policy is an added layer protection against any issues with the title search:
- It allows a buyer to feel confident that he or she is the legal owner of the property, and they have marketable property title.
- It protects buyers from a title being contested based upon past rights and claims asserted by others, including but not limited to liens.
- Allows for protection against “hidden hazards.”
The cost of purchasing a title insurance policy can be included into the transaction’s closing costs, making for a smooth and seamless process.
At The Law Office of Donna Hearne-Gousse, P.A. we handle your title, escrow, and closing needs. You’ll enjoy all of the benefits associated with an “attorney based title agency” at similar, and in many cases, lower costs than a standard title company will charge. Contact us to learn more about title searches, title insurance, and complete real estate closing services.
The Law Office of Donna Hearne-Gousse