title insurance in south florida
Do You Need Title Insurance in South Florida? – Protect Yourself Now!
Real estate can be a tough business for those who do not pay attention to detail. When someone is looking to buy or sell any property, especially in South Florida, they must understand the toll involved.
There is a lot of potential issues regarding real estate properties. It can include building architecture, sewage systems, renovations, landscape, and others. This is why having a clear title of the property is essential before the closing. Before the transfer process, a seller must inform the buyer about the property’s clear title he is buying.
But how to find out if you need title insurance or not? In this short article, we cover all the essential aspects of this subject.
Title Insurance In South Florida: Why is it so Important?
Good title insurance prevents many headaches for anyone buying a house in South Florida. Once a buyer acquires a property, he must deal with all the losses from the previous owners.
It can be hard to deal with, especially considering potential financial losses that may arise suddenly. Hence, getting title insurance serves as a protection for such situations.
Before a seller hands over a property to the buyers, their seller’s history will be crosschecked to establish a clear title. The seller needs to be completely free of legal claims against the property before handing it out to the buyer.
Sometimes the company responsible for the survey may fail to detect outstanding claims of title defects of a property. In this situation, title insurance will protect the dependent even with issues resulting from a pending lawsuit of legal judgment.
Understanding the Policies Behind the Process:
The customizing promulgations for title insurance premiums are the responsibility of the state of Florida. A homebuyer does not necessarily need to buy title insurance, but the owner’s policy will help you in this matter.
There are two policies, ideally. The owner’s policy, representing the seller’s title insurance, and the loan policy, representing the lender’s title insurance.
Owner’s Policy:
Its coverage is equal to the purchasing price paid for the property. The buyer gets it as a one-time fee at closing. This title insurance serves to protect the buyer from any lawsuits that may question the ownership of the property.
Besides, it also helps with legal fees involved when claiming the title. Once provided the buyer or their heirs continue displaying an interest in it, this policy will remain active.
Loan’s Policy:
Financial institutions often implement a loan policy. It protects their interests in a property in specific situations involving legal issues related to the property. When a person requests a loan, this type of issue may appear and the loan’s policy was designed for this type of situation.
The loan policy coverage usually depends on the amount of the loan, but it can be higher also. Besides, lenders rely on title insurance as collateral, as they prevent risks arising from the property’s value.
How To Calculate The Baseline Cost Of Title Insurance in South Florida:
Last, you need to know how the cost of title insurance is calculated. It is calculated on the purchase price of the property, with values ranging from $1000 to $4000.
Property buyers investing in real estate in South Florida commonly need to pay 2-5% of the buying price in title insurance. This is for purchase prices lower than $100k. Anything above this value may include a title insurance premium of $5.75 per $1000 of the original purchase price.
Do You Need Title Insurance in South Florida? – We Can Help You!
Buying and selling a property in South Florida comes with its share of legal and financial risks. However, here at Marina Title, we can make it easier for you. Call us to (305) 901- 5628 or send us an email to Info@MarinaTitle.com.
