Title Insurance Protects Homebuyers – This is How Title Insurance Protects Homebuyers – This is How

Title Insurance Protects Homebuyers – This is How

May 15 2019

Whether you are purchasing a new home or an existing one, or even refinancing, Title Insurance will protect you against any unresolved problems of the past affecting the title to your new home.

What is Title Insurance? – A Real Estate Attorney Answers

In simple terms, Title Insurance is a policy that protects the property rights of homebuyers against any unresolved problem with the property they are purchasing. If there are any claims to the property, Title Insurance will protect the owner from being held personally responsible for such claims.

How Does Title Insurance Protect My Rights?

Consider the following example:

You have recently purchased a new home directly from a builder, who failed to pay the roofer, who then filed a lien against the property. You would not find out about this issue until the claim is filed and you are held responsible for the builder’s debt.

Without Title Insurance, you would be responsible for paying this existing debt out of your pocket, with money you could be using to purchase something nice for your new home, like new furniture or appliances.

A Title Insurance policy protects you from both legal and financial responsibilities.

The Basics of Title Insurance

There are two types of Title Insurance:

  • The owner’s policy protects your rights to your property as the homebuyer.
  • The lender’s policy insures the financial investment of a bank or lender.

If someone else claims ownership of your property, your Title Insurance policy will typically defend you both legally and financially.

Common Risks of Buying a Home in Florida

When it comes to purchasing a home in Florida, although the experience may be exciting at first, many problems may emerge with the title to any property. These include:

  • Liens against the property that serve as security for the payment of obligations, including:
  • Mortgage liens,
  • Federal tax liens,
  • Judgment liens for unpaid court judgments,
  • State and local liens for failure to pay real estate taxes or assessments,
  • Liens for recovery of child support payments, and
  • Liens to secure payment for property improvements.
  • Easements that were created by contract, including:
  • Rights of way for utilities, and
  • Rights acquired by neighbors because of a fence infringement.
  • Claims emerging out of bankruptcy.
  • Building or use restrictions contained in recorded plats, deeds or agreements.

Generally, the problems listed above emerge after closing, once the property is officially yours, which is why obtaining Title Insurance is crucial when buying or refinancing a home. Title Insurance gives you peace of mind that the rights you have acquired to your property remain protected.

Refinancing and Title Insurance

Refinancing a home means obtaining a new loan, even if it is from your original lender. In Florida, lenders will typically require a new title search and a lender’s policy to protect their investment in the property. Fortunately, you do not need to purchase a new Owner’s Title Insurance Policy, as the one bought at closing will remain valid for as long as you or the members of your family own the property.

Work with a Title Company – Choose Maria Title

As a full-service title company, Marina Title provides a wide variety of title services in Florida, such as assisting clients in acquiring title insurance policies at the best possible rates. Our real estate attorneys know almost all there is to know about Title Insurance; from drafting a sound policy to making sure every single one of our clients does not end up spending more money than necessary.

Our team of title experts is irrevocably committed to finding the most affordable solutions for every client we work with. To learn more about our professional title services, call us at (305) 901-5628 or send us an email to info@marinatitle.com.

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