Why Title Insurance Is Important For Every Florida Real Estate Purchase
Buying any real estate, from a modest home or condo to a large commercial property, is a huge investment for most people. In the case of residential property, it is usually the largest investment the home buyer will ever make. Real estate ownership is complex, though, and every property has a long history of previous ownership. During that history, it may have changed hands many times. Anywhere in that history, there could be an issue that could interfere with your ownership.
That’s the reason Title Insurance exists. Issued at the time of transfer of ownership, it protects you from financial loss in the case of an adverse condition that makes true title to a piece of property questionable. Title Insurance companies will protect their policyholders’ titles by engaging in legal cases regarding a disputed title, and offer assurance that the current owner is protected from financial loss.
The Two Types of Title Insurance
If, like most real estate buyers, you purchase a property via a mortgage, the lender will insist on title insurance as part of the loan agreement. The buyer pays for this, in a one-time, reasonable fee that protects the lender throughout the term of the mortgage.
Individual title insurance that protects the buyer is optional, but is highly recommended. This may be issued as a separate policy or in combination with the lender’s policy. Again, a single, reasonable payment protects the buyer from issues that may cloud ownership as long as the buyer owns the property and beyond. Some of the things that can pop up, even years after you buy the property, include:
- Deeds, wills and other documents that contain forged signatures, etc.
- An unknown heir of a previous owner who may have a claim.
- Invalid documents prepared under an incorrect or expired power of attorney.
- Mistakes in public records.
Title insurance protects against these issues and many others.
Real Estate Title Insurance Requirements
Before a title insurance policy can be issued, a detailed and complete search is made to discover any issues that get in the way of a clean transfer of ownership. By searching documents and records, a Real Estate Title Services Company, like Diamond Title Agency, identifies all of these items and works to clear them:
- Deeds, wills & trusts containing errors.
- Outstanding mortgages, liens, and judgments against the property.
- Easements that allow road or utility construction on the property.
- Pending legal actions against the property.
- Incorrect notary acknowledgments.
- Any other issues that could prevent legal transfer of the title.
Some things, such as mortgages, are cleared at the time of the sale. Others often require clearance before the sale can take place. In every case, you, as the buyer, will be made aware of these issues as a matter of due diligence. With all issues properly resolved, a Title Insurance Underwriter will agree to issue Title Insurance policy and the sale can be completed. This process takes up most of the time that the sale is in Escrow, and is the job of the Title Services Company.
Diamond Title Agency– Panama City Florida Title Insurance Services
At Diamond Title, we understand just how important the issuance of Title Insurance is to every real estate transaction. Our experience, training, and expertise are the keys to the detailed process of title searches and clearance of title issues for Panama City, FL. We dedicate ourselves totally to completing the process and qualifying the property for Title Insurance efficiently and quickly, so that the final closing of the transaction can be done on time. We use only the best Title Insurance Underwriters to supply this vital insurance. You can count on us to meet and exceed your expectations.