Buyers and Owners Policies for Title Insurance

Buyers and Owners Policies for Title Insurance

At the time of purchase, a buyer “takes title” to that piece of property, assuming all responsibility over it. These responsibilities and duties include, but are not limited to, paying off any liens levied against the property, dealing with neglected property taxes or mortgage payments and more. It stands to reason that a buyer would thus want to be sure before making the investment that the title is free and clear of unwanted baggage and burdens.
There are, however, several different forms that title insurance takes. When buying or selling property in the residential sector or any other, for that matter, relying on a professional who is experienced in dealing with the legalities of buying and selling property, as well as buyers and owners title insurance policies, can save you a lot of aggravation and protect you potentially drastic consequences.

What a Title Company Does

Buyers and owners title insurance policies are issued only after a full title search has been conducted, during which all of the records pertaining to the property’s title are meticulously combed through. The title agency will likely also require the seller to account for outstanding mortgage payments, taxes and liens before it will issue a policy to the buyer. This caution and thoroughness protects the latter party from disaster. Of course, even the most in-depth search could miss some minute but crippling problem, in which case, the buyer can rest easy due to the protection provided by the title insurance policy.
A title insurance agency may provide many other valuable services beyond those pertaining to buyers and owners title insurance policies. For example, they may act as Qualified Intermediaries in the event of a 1031 tax deferred exchange.

Title Insurance: Owner’s and Lender’s

At the cost of a one-time fee, an owner’s policy can protect your investment from a wide array of potentially damaging issues related to, fittingly, the ownership of the title. In essence, an owner’s policy leashes your financial destiny to that of your insurer, who will cover the full sales price of the home in the event that your ownership is ever questioned. For example, a long lost relative resurfaces, perhaps years after you bought your home, and lays claim to the title. On the other hand, perhaps the signing of a particular but crucial document was overlooked and suddenly the transaction is rendered invalid. Owner’s insurance safeguards the buyer from such distressing possibilities.
A lender’s policy, by contrast, assures the financial institution responsible for issuing the loan that its investment is protected from those same possibilities. Because the buyer cannot obtain the loan without paying for lender’s insurance, it is the buyer’s responsibility to cover the cost of obtaining it. The value of the mortgage is covered by the policy, and all parties are thus granted peace of mind come closing day. Note that all above-described policies take effect upon the time of closing.
At Marina Title, skilled and experienced professionals are standing by to answer any and all questions you may have pertaining to title insurance policies in particular and the Florida real estate market in general. Please contact us by email at [email protected], or by phone at (305) 901-5628.