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Frequently Asked Questions about Title InsuranceFrequently Asked Questions about Title Insurance

Frequently Asked Questions about Title Insurance

20 May 2019

For most people, a home is the largest investment they will ever make, which is why obtaining Title Insurance is crucial. Title Insurance is the smartest and most effective way to protect your property from legal claims regarding debts of previous owners.

To help you understand how Title Insurance works, here are answers to the most common questions our title experts are Marina Title get from clients.

What is Title?

Simply put, title is your right to own and use your property. In a real estate purchase transaction, title is transferred to you from the previous owner at closing. Additionally, title establishes any limitations regarding your rights to your property.

What is a Title Search?

A title search is an early step in the process of buying a home and is meant to uncover any hidden issues that could limit your rights to the property you intend to purchase. If a title issue is discovered, in most cases your title professional will promptly take care of it without you even knowing; however, this is not always the case. Once the title search is complete, your title company will provide a Title Insurance policy.

If you are looking for a title company, you have found it! Maria Title is here to help you!

What is Title Insurance?

When you buy a home, having a Title Insurance policy helps you protect your investment and your rights to your property. When you have Title Insurance, your new house will remain protected against claims regarding debts of previous owners for as long as you own it.

There are two different types of Title Insurance:

  1. An Owner’s Title Insurance Policy is the best way to protect your property rights. Either the buyer or seller in a real estate transaction may pay for this policy. When it comes to handling Owner’s Title Insurance in Florida, Maria Title is your best option.
  1. A Lender’s Title Insurance Policy is typically required by lenders and protects only the lender’s financial interests. Generally, the buyer pays for this policy; however, that is not always the case. For more information about Lender’s Title Insurance, contact Marina Title.

Why Should I Purchase Owner’s Title Insurance?

The main reason why you should obtain Owner’s Title Insurance is that it protects your investment in your property against any legal claims regarding ownership that are filed in the future. For a one-time fee, you and your heirs will receive coverage for as long as you or your family own the house that was insured. Additionally, Title Insurance covers potential legal fees and court costs for settling the ownership claims covered by your policy.

What Does Owner’s Title Insurance Cover?

Sometimes, unexpected defects in the title that were not revealed by the title search can come up. When you have an Owner’s Title Insurance policy, you are protected against certain undiscovered defects in the title, including:

Unanticipated title claims, such as:

  • Forgery (making a false document). For example, the seller misrepresents his or her identity.
  • Fraud  (deception to achieve gain illegally). For example, someone steals a homeowner’s identity and either sells that person’s house without his or her knowledge or consent, or takes out a second mortgage on the house and walks away with the money.
  • Clerical Error (inconsistent paperwork and historical records). For example, an unexpected discrepancy in the property or fence line causes confusion in regards to ownership rights.

Unexpected title claims, such as:

  • Outstanding mortgages and judgments, or liens against the property arising from the seller’s failure to pay the required taxes.
  • Pending legal action against the property, which could affect your ownership rights.
  • An unknown heir of a previous owner who is claiming ownership of your property.

How Much Does Owner’s Title Insurance Cost?

The short answer: much less than it is worth.

The one-time payment required to obtain Owner’s Title Insurance is significantly low relative to the wide variety of money-saving benefits it provides. Typically, a Title Insurance policy costs around 0.5% of the purchase price of the home you are buying.

To learn more about Title Insurance and how the Title Professionals at Marina Title can help you, call us today at (305) 901-5628 or send us an email to info@marinatitle.com to schedule an initial consultation.

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