Get the Scoop on Title Insurance: What is it and Do You Need it?

Get the Scoop on Title Insurance: What is it and Do You Need it?

A property title is a document that shows the legal owner of a property. The title includes information about the property, such as the address, the owner’s name, and any liens or mortgages against the property. The title is important because it proves ownership of the property and can be used to transfer ownership of the property.

Title insurance is a form of insurance that protects the title to a piece of property from any claims that may arise against it. This type of insurance is typically purchased by the owner of the property, and it helps to ensure that they will be able to sell or mortgage the property without any problems. In many cases, title insurance may also be purchased by the buyer at the time of purchase, and sometimes, it may also be purchased by the lender.

The title insurer researches the title to the property and issues a title insurance policy to the home seller, home buyer, or the property financier (the lender). If there is a problem with the title, the title insurer will defend the title against any claims and pay any damages that may be awarded.

Essentially, if there is a problem with the title, title insurance will help to pay for all the costs associated with fixing the problem.

Is Title Insurance Required to Buy a Property in Florida?

In Florida, it is not compulsory for a property purchaser to have title insurance. However, the majority of lenders will require it as part of the loan process. This is because the title insurance protects the lender in case there are any issues with the title to the property. It can also provide protection for the purchaser if there are any defects in the title that are not discovered until after closing.

Is Title Insurance Required to Sell a Property in Florida?

There is a common misconception that title insurance is compulsory when selling a property in Florida. This is not the case. While it is always advisable to have title insurance, it is not compulsory for the seller to have it. However, the majority of sellers do have it as they themselves may have obtained it when acquiring the property. In any case, it is not a bad idea for sellers to have title insurance because it could mean protection against problems like liens or judgements being placed on the property after it has been sold. For example, it could protect against things such as forged signatures on the title or liens that have been placed on the property without the owner’s knowledge.

The Role of an Attorney

When buying or selling a property, it is helpful to have a title insurance policy in place. However, it is not compulsory. One thing that is however very important and cannot be overlooked is the role of an attorney. A Florida attorney is required to draft the sale and purchase agreement and to review other necessary documents. For example, if you are getting title insurance, the attorney can help you review the title insurance policy and make sure that everything is in order.

So, if you are in Florida and you are buying or selling a property, be sure to contact our law firm so that we can prepare the required documents and help you understand the title insurance policy. We are always available and would be happy to help.