Florida Title Insurance
Your Guide to Florida Title Insurance
At the time of buying a new home or refinancing one that is already owned, the major issue that seems to dominate the mind of most people is financing. Very few homeowners think about Florida title insurance for their properties even though it is quite an important aspect of asset possession. Title insurance has two major components; the first aspect is to conduct a search for the title in the public records. A Florida title company can do this task by engaging an attorney or closing officer. The search is used to verify that the ownership of the property belongs to the seller and they are legally entitled to sell it. Records of titles searches in Florida on average show that a third of all the searches conducted reveal a defect that can be fixed before the transaction.
While the buyer needs protection from loss of property, the lender too needs to safeguard their finances if the property was purchased with mortgage. These are some of the important issues that buyers need to know regarding Florida Title Insurance;
Regulation of prices – Florida title insurance costs is regulated, and the same applies to other states as well meaning that there is no price variation in title insurance between title companies. Since the consumer does not have significant control over the cost, they should focus on the quality of service from the insurance company as well as quality of the title search.
Who Pays for Title Insurance – there is no question about the need for the buyer and the lender to have title insurance coverage in case of a loss but the responsibility to pay for these coverage is determined by county bylaws. This can, however, be a point of negotiation in the contract. In most counties in Florida, the seller will by default source for a title company and pay Florida Title insurance.
Who to trust – if you have multiple parties offering guidance and direction of how you should go about the process of buying property, you are bound to be confused especially if some of them have an interest in the transaction. Between a real estate agent, a lender and the seller, the lender stands a better chance of offering sound advice for a purchase because it is their money which will be held up in the property for the long term.
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