Find Your Way to Protecting Your Property Rights With Title Insurance
June 20, 2023A lot goes into buying a new property. Choosing a place that suits your preference is just the starting point, and it's not rare for people to get overwhelmed halfway through the process. Part of the preparations includes setting the best backup plan to protect your investment in the long run.
Title insurance policies are created for this purpose, which is why they're a basic part of any real estate transaction, with title & escrow companies offering their services to help buyers along the way. Just by hearing about title insurance, you can get an idea of how they can ease many of the worries that come with making such a big decision.
What Is Title Insurance?It's not surprising to find a long string of claims and limitations attached to the property we want to buy. The regulations placed by local laws are bound to change over the years, not to mention the constraints placed by previous owners.
A title is a primary document that validates a person's right to occupy and use a real estate property in any way that's allowed by the local building code. Title insurance, in turn, helps protect those rights in the long term. It keeps new owners from taking the burn of unresolved ownership disputes or debts that were sustained before the property transfer, preventing legal punishment and financial loss.
Why You Need Title InsuranceTitle insurance protects homeowners and lenders after the end of the real estate transaction when all deposits have been made and the title transfer is recorded. Because title insurance reinforces the validity of the property documents, it also has weight to counter sudden issues, like title defects that had stayed unknown by previous owners.
Title and escrow services conduct a thorough title search before determining the best insurance policy. A title search takes care of ruling out many problems, revealing errors that go overlooked on the public records or claims that could lead to financial expenses later on. While this step is essential to confirm a seller's identity and the title's validity, you still need the long-term reassurance that comes with title insurance.
With the right insurance policy, you can avoid the worst repercussions from any of the following:
- Fraud, enabled by falsified documentation or identity theft.
- Hidden heirs that are discovered after a sale is settled, or other claims that could potentially limit your ownership rights.
- Encumbrances that could lower the property's market value.
- Liens, from unpaid mortgages, taxes, labor fees, or debt that could use the property as collateral. This refers to debt accumulated by previous owners before the property transfer.
- Faulty documentation, like improperly recorded documents or inaccurate data in property deed.
- Property survey errors.
- Unresolved building code violations.
- Restrictions on property use and occupation, easement, boundary disputes, etc.
Title insurance is valuable in all scenarios but, depending on the title, it can also do a lot for your peace of mind. It's harder to foresee all the possibilities when considering shared ownership, heirs, and survivorship rights. The number of rules and regulations only grows higher if the title is held by an LLC or a partnership.
This is why you shouldn't stop at the title search while looking after your investment. Choosing the expertise of a title and escrow service is a rewarding decision that will save you from many headaches down the line. You can count on the assistance of real estate professionals to provide the most suitable insurance policy so you can stay on top of your requirements while preparing for the closing.
Homeowner's Policy and Lender's PolicyThere are two types of title insurance, and they're issued after the title search is complete.
Real estate agents recommend getting a homeowner's insurance to protect your investment after buying a new property. Owner's insurance policies are optional and they generally need to be acquired only once. This is because its coverage will protect the property as long as you or your heir are that property's rightful owner(s).
On top of protecting against the legal and financial issues described above, homeowner's insurance also safeguards the building/space you purchased in the event of natural disasters, accidents, and other conditions that could result in personal injury or property damage.
Mortgage holders have title insurance as one of their standard demands before granting a mortgage for purchase or refinancing. Liens and pending debt can also bring financial loss on the lender's end, making the lender's insurance an ideal option to protect their investment. It also serves as a show of good faith as homeowners are the ones expected to pay for its coverage.
Lender's insurance basically ensures that the mortgage remains the only lien pending on the property, or that it takes priority over other liens.
If you're in the midst of a real estate transaction, come to Florida's best title and escrow service. Key Title & Escrow never fails to provide the best services, from thorough record examinations to a variety of options for your title insurance.
Our specialists will review the property records to come up with the most advantageous insurance policy, so you can start this new stage without worrying about any loose ends. We work with top-tier insurance companies to ensure that your insurance coverage stands the test of time.
Protect your peace of mind and get the best insurance coverage for your new property. The specialists at Key Title & Escrow always have your best interest at heart. You can secure the most fitting title insurance to prevent losses if you're hit by an unexpected claim years down the line. Contact us and we'll tell you all you need to know. Just call (305) 235-4571 or toll-free at (800) 547-0006. You can also get in touch with our staff via the contact form on this page. Key Title & Escrow will have everything ready so you have nothing to worry about once the closing date rolls around.