Why Florida Title Insurance is Mandatory

Buying real estate is an exciting, life changing event, but one that requires a checklist of items to be accomplished. An important part of the real estate transaction is the title search to ensure that the property is free of liens or other issues. Purchasing a title insurance policy is an integral part of this process.

What is a Title Search and Title Insurance?

A title search is a relatively inexpensive safeguard that will uncover any publicly recorded issues that currently exist on the property being purchased. However, some title issues are not visible on a title search and must be protected against. This is where title insurance becomes relevant.

Title insurance protects the homebuyer from any current or past issues that may become uncovered in the future regarding the property. Such claims against a property include but are not limited to: forgery, fraud, false affidavits, undisclosed or missing heirs, unrecorded contracts of sale, bankruptcies in other jurisdictions, suppressed or undiscovered wills, power of attorney revoked by death or insanity, claims arising by reason of foreign divorces, erroneous interpretations of statues and rules of law, unrecorded easements, false impersonations, insanity and incompetence, and perjury.

Title insurance is required by all lenders in a financed transaction. So, if you are taking out a mortgage or any type of loan as part of a real estate transaction, you will need to get title insurance. Although it is not mandatory in a cash transaction, it is highly recommended. Generally speaking, insurance is best when you have it but do not use it. Although title insurance is rarely used, it is an asset when needed because it insures the largest financial investment most people ever make.

The peace of mind and security provided by title insurance is invaluable. If a claim is made against your property, your title insurance policy will provide you with a legal defense and cover the buyer for any valid claims up to the amount of the policy (which is usually the purchase price or full loan amount).

If you are purchasing property in the state of Florida, and want to learn more about title insurance or any other aspects of the closing process, contact us today. The Law Office of Donna-Hearne-Gousse, P.A. is a full service, attorney-based title insurance company located in Royal Palm Beach, Florida.

The Law Office of Donna Hearne-Gousse
(561) 582-5670

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