title insurance
How Does Title Insurance Work in Florida? – Expert Advice and Explanation
A title insurance is a kind of indemnity insurance with the purpose of protection of the policyholder. It protects the person from losses that may occur due to a problem in a title to a given property. We will show its main aspects and how it works.
How Does It Work?
Title companies must make an in-depth analysis of the claims against the property in question. This search consists in the examination of public records. This aims to confirm the legal ownership of a property and find out if there are any claims on a property such as building code violations and wrong surveys. This are examples of problems that can make a title faulty.
Conventional insurance policies protect policyholders against future events, but title insurance protects holders against issues that may have happened in the past.
How Many Types Are There?
There are two types of title insurance, but the most common one is the lender’s title insurance, when a borrower purchases it to protect a lender. On the other hand, the owner’s title is usually purchased by the seller in order to protect the equity of the buyer in a property.
How to Purchase Insurance?
The insurance process must start immediately after the completion of a real estate purchase agreement. Some of the best American underwriters that may be recommended to you include Fidelity National Insurance, Old Republic National Title Insurance, Steward Title Guaranty Co, and First American Corp, among others. The price can vary slightly from one State to another, but, on average, the owners’ title insurance is going to cost you about one percent of the property purchase price.
Final Thoughts
When it comes to real estate transactions, the importance of title insurance cannot be overvalued. Indeed, these policies are essential to protect both the lenders and buyers against any problems that may affect the property title. However, there is nothing that prevents a deal to be made without a Title. What you must keep in mind is that it is crucial for the parties to know that buying a house without such document is highly risky, and it can lead to huge financial losses.
Do You Need Help with a Title Insurance?
Do not hesitate and call us to (305) 901-5628 or contact us through Info@MarinaTitle.com. We will be glad to assist you!
