Posted on Friday, June 11th, 2021

title insuranceBuying a new home can be delightful; however, the experience can quickly turn into a nightmare if not done properly. It is important to note that, once you select and buy your home, you will need to ensure that proper documentation is provided to you, at closing, so that you have proof of ownership.

Real estate agents handle the process of selling the home; however, it is crucial to do your due diligence, from a title standpoint, and therefore, it is recommended that conduct an examination of the condition of title to the property you are interested in buying before you make such a big decision. Here is some information from Real Estate Lawyers in Central Florida on title to real property and title insurance. 

What is a title?

A title is evidence of a person’s ownership of certain real property. In Florida, title is generally conveyed in the form of a deed, which is provided, by the owner, at the time that the owner transfers the property to you. Once you buy the home, title to the property will be conveyed to your name as buyer.  At times, there may be issues that arise with the condition of title to the property, which is why it is important to conduct an examination of title to the property before you buy your home. It is also just as important to consider purchasing title insurance at the time that you buy your home.

Title search

When buying a home, it is recommended that a buyer request a title search in connection with his or her purchase of the home. The same is recommended for a lender that is providing a loan to a borrower securing real property. A title search consists of conducting a search of the public land records on certain real property, which reveals the history that real property before a purchase is to occur or before is loan is to be given. The purpose of the title search is to ascertain the real property’s legal owner, to confirm what claims or liens exist on the real property and if there are any other defects in title to the real property.

If there are issues, the title is deemed defective. If title insurance is being purchased in conjunction with the title search, and title is deemed defective, the title insurer would then seek to eliminate any of the title issues discovered before the closing is to take place. 

What is title insurance?

Title insurance is a type of insurance coverage that protects a buyer who buys real property or a lender who lends against real property, from a variety of title issues. Title insurance is designed to protect homebuyers by virtue of an Owner’s Title Insurance Policy, which provides coverage for any financial losses and legal expenses arising from or relating to defects with title that existed before the issuance date of the policy. For a nominal fee, an Owner’s Title Insurance Policy protects your investment when buying a home.

Title insurance is also designed to protect lenders by virtue of a Lender’s Title Insurance Policy, which provides coverage for any financial losses and legal expenses a lender may suffer arising from or relating to defects with title, which existed before the lender provided a loan to a borrower securing real property. The purpose of this Policy is to ensure that the lender has a valid and enforceable lien against the subject property. This type of policy is designed to protect the lender, only, and provides no protection to the buyer or an owner of the property.  For a nominal fee, the Lender’s Title Insurance Policy protects the lender against certain risks in providing the loan. It is also important to note that most lending institutions will require a borrower who is either buying or refinancing real property to purchase this type of policy for the benefit of the lender at the time of the closing. 

What is the cost for title insurance?

When purchasing an Owner’s Title Insurance Policy there is a one-time fee that you would pay. This cost varies by state. In Florida title insurance costs are promulgated by the State and it is usually based on the value of the real property being insured. When purchasing a home, getting the help of Central Florida Real Estate Lawyers should be a priority to ensure that you are properly protected.

The risk of not having title insurance

Without purchasing title insurance with your purchase of your home, you run the risk that, someone may come along, sometime in the future, claiming some type of interest in your property. For explain, a missing or undisclosed heir, an unpaid lender, or an unpaid lienholder. Without being properly insured, these types of scenarios may force you to dig into your pockets to cover the unprecedented costs, which may arise in connection with defending your title to the subject property.

Why you need a Real Estate Lawyers in Orlando?

Nishad Khan, PL, one of the best Orlando Real Estate Firms, shares how it helps its real estate clients. A lawyer at the Firm will help you with legal representation in case you are seeking to avoid issues with your title or property.

Real Estate Attorneys in Orlando provide homeowners with the best legal services. They also help you with the conducting of a title search, so that you can ascertain whether there are any defects in title.

Take away

If you have a problem, contact Orlando Real Estate Attorneys for help. They can help you with the property buying process, especially in the absence of a real estate agent. With their expertise, you can expect that the process will be a smooth one, and you will soon have your dream home.