Why do I need Title Insurance?
The purchaser of real estate needs protection against serious financial loss due to a defect in the title to the property purchased. For a single, one-time premium, which is a modest amount in relationship to the value of the property, a buyer can receive the protection of an owner’s title insurance policy – a policy that is backed by the reserves and solvency of the Company. An owner’s title insurance policy will cover both claims arising out of title problems that could have been discovered in the public records, and those so-called “non-record” defects that could not be discovered in the records, even with the most complete search.
An owner’s title insurance policy will not only protect the insured owner, but also that person’s heirs for as long as they hold title to the property, and even after they sell. The Company will not only satisfy any valid claim made against the insured’s title, but it will pay for the costs and legal expenses of defending against a title claim.
PLEASE NOTE: A LENDER’S TITLE INSURANCE POLICY INSURES THE LENDER ONLY AND DOES NOT PROVIDE OWNERS COVERAGE.
Why are there separate title policies for owners and lenders?
There are two types of title insurance: Owner’s title insurance, called an Owner’s Policy and a lender’s title insurance, called a Loan Policy. Most lenders require a Loan Policy when they issue you a loan. The Loan Policy is usually based on the dollar amount of your loan. It only protects the lender’s interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases as you pay down your loan and eventually disappears as the loan is paid off.
An Owner’s Policy is usually issued in the amount of the real estate purchase. It is purchased for a one-time fee at closing and last for as long as you have an interest in the property. Only an Owner’s Policy protects the buyer should a covered title problem arise. Possible hidden title problems can include:
*Errors or omissions in deeds
*Mistakes in examining records
An Owner’s Policy provides assurance that your title insurance company will stand behind you-monetarily and with legal defense if needed-if a covered title problem arises after you buy your home.
Local Real Estate Attorney’s that handle closings:
Porges, Hamlin Knowles & Hawk, 1205 Manatee Ave. West Bradenton 34205, 941-748-3770.
Najmy Thompson, 1401 8th Ave. West Bradenton Fl 34205, 941-907-3999. http://najmythompson.com