Title InsuranceTitle Insurance

Get the Facts on Title Insurance

07 Jan 2022

Insurance is an easy enough concept to grasp. From your car to your own well-being, just about everything important can—and should—be insured against the unexpected but always likely hazards of life. But how do you get insurance for something like title, a hazy legal concept most people probably do not think much about? You may be surprised to know how Title Insurance works and just how vital it is for every possible real estate transaction. 

Getting Down to Brass Tacks: Why Title Matters

To understand Title Insurance and appreciate its significance, it helps to know what exactly it insures. Consider your typical real estate transaction: After fulfilling their respective obligations in the contract, both buyer and seller attend closing to sign some paperwork and—what everyone has been waiting for—to exchange money for the keys to the property. It seems like a fairly straightforward arrangement: Whether you buy, inherit, or are simply given it, the property is yours.

Only it is never that simple, especially when it comes to real estate and title law.

You can pay every penny of the contract price and be granted the full use and enjoyment of the property by the previous owner. But if you do not have title rights over that property, none of it means anything. That is because title is that “bundle of rights” that come (or should come) with every property: The right to own it, use it, live in it, modify it, sell it—you name it. In any proper transaction, it is important to ensure that it is not just the physical property you are getting, but also the clear and marketable title to said property. 

Hence no transaction, regardless of its nature, is effective without the execution of a deed, the legal instrument that transfers title from one owner (the grantor) to another (the grantee). However, even having a signed and recorded deed is enough to guarantee that you truly have clear title a property—or that said title is all that it is cracked up to be.

Here is Where Title Insurance Comes In

If you are feeling a little flustered about how complicated this all is, do not worry: That is why Title Insurance is a thing, and why we specialize in it. The point is not to make you second guess every deed that comes your way, but to remind you why Title Insurance is so vital. Just as insuring your home, car, or health does not mean you live in constant paranoia about the fate of all these things, Title Insurance exists for the exact same purpose: to give you peace of mind and a backup plan in case things go wrong.

For example, take that deed: It meets all the requirements under Florida law, like giving a clear legal description of the property and being signed by the grantor in the presence of two witnesses, etc. But what if the person signing does not actually own that property? What if they are committing fraud or simply do not realize that they are not the rightful owner? What if a company is the seller but the person who signs later turns out to not be an authorized signatory for the company?

And what if there are other issues with the title to the property—a lien imposed by a contractor who claims to have never been paid? An heir from a previous owner who claims he is the rightful inheritor? A code violation from the city or county government? Or even something as innocuous but consequential as a misspelled name on an older deed some years back? At best, these issues could become your burden to bear as the new title-holder—but at worst, they could undermine your very claim to title in the first place. 

These and other hazards—some of which are almost impossible to discover until it is too late—are why Marina Title undertakes diligent and extensive title search to uncover just about everything having to do with a property. But just as no amount of preparation or foresight can prevent certain illnesses, car accidents, or home-damaging floods, even the most extensive and advanced title search may not uncover everything. 

That is why we also specialize in preparing Title Insurance policies that will protect your investment from possible defects, third-party claims, or other “hidden hazards” that may emerge down the road. With Title Insurance, you will be able to cover the associated legal costs of defending against these claims and will be protected for an amount equal to the purchase price of the property. 

Contact Marina Title Today

As you may have gathered, buying or acquiring real estate is just half the battle. There are a host of other serious legal issues that may come into play, none of which should be your burden to bear. 

That is why, from escrow services to title examinations to title insurance, Marina Title provides a myriad of title and legal services that will ensure your transaction runs smoothly so that your real estate investment will remain protected for years to come. We are not in the business of simply wrapping up a transaction and moving on to the next one: We are in this to help you in the long run. That is why we are committed to the sort of professional, personalized service that ensures your rights are protected long after the deal has closed. 

To learn more about what Marina Title can do for you, call 305-901-5628 or email info@marinatitle.com.

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