Why Title Insurance?

Your home is the single most important and costly asset you will probably ever own. Problems with title to your property can limit your use and enjoyment of the real estate, as well as bring financial loss.

Defects in title include but are not limited to forged deeds, releases or wills, mistakes in recording of legal documents, undisclosed or missing heirs (including spouses), deeds by minors, persons of unsound mind, fraud, and liens for unpaid taxes.

Frequently Asked Questions

Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.

Title insurance is principally a product developed and sold in the United States as a result of an alleged comparative deficiency of land records in that country. It is meant to protect an owner’s or a lender’s financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.

The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853.

If a claim is made against your property in Florida, title insurance will, in accordance with the terms of your policy, assure you of a legal defense — and pay all court costs and related fees. Also, if the claim proves valid, you’ll be reimbursed for your actual loss up to the face amount of the policy.

An “Owner’s Title Insurance Policy” guarantees you have “clear title”, that is absolute legal ownership with no unknown claims or debt against your property, for as long as you own the home.

Just as lenders require fire insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance [a loan policy] to protect their interest in the collateral of loans secured by real estate. Some mortgage lenders, especially non-institutional lenders, may not require title insurance.

Buyers purchasing properties for cash, or with a mortgage lender, often want title insurance [an owner policy] as well. A loan policy provides no coverage or benefit for the buyer/owner and so the decision to purchase an owner policy is independent of the lender’s decision to require a loan policy.

Title Insurance is issued after a careful examination of the title abstract/commitment of the property and any liens or title defects are satisfied. While even a thorough title search performed by the most experienced and knowledgeable experts in the industry cannot ensure that no title defect exits, some problems just aren’t revealed in public records.

Unlike other types of insurance that charge an annual fee, title insurance is paid only once in full at closing.
Title insurance protects the owner(s) the entire time of ownership of the property insured from any hidden title defects that existed prior to the issue date of the policy.
An ‘Owner’s Title Insurance Policy’ is based on the purchase price of the property. The State of Florida Department of Insurance publishes title insurance standard rates (promulgated) which determine the amount of the premium. Our office charges the promulgated rate.
If a buyer is securing financing for their new purchase, the lender will also require a separate, simultaneous issued, ‘Mortgagor’s Title Insurance Policy’, to insure the amount of the loan. If an owner is refinancing their property, the new lender will require a lender’s policy.

While a refinance does not require new owner’s title insurance, by providing our office with a copy of the policy, will save you money with a reissue rate on the new lender’s policy, which is discounted and dictated by the state.

When buying or refinancing a property there are other fees charged to the HUD Settlement Statement by the title company.

Settlement Fee to Lawyers 1st Title – This fee covers the costs of preparing the documents and handling the actual closing.

Recording Fees – To record the deed, mortgage and any affidavits.

State/ County Tax – Only applicable if you are getting a mortgage.

Property Survey – Optional if paying cash but required if getting a mortgage.

Frequently Asked Questions

Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.

Title insurance is principally a product developed and sold in the United States as a result of an alleged comparative deficiency of land records in that country. It is meant to protect an owner’s or a lender’s financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.

The first title insurance company, the Law Property Assurance and Trust Society, was formed in Pennsylvania in 1853.

An “Owner’s Title Insurance Policy” guarantees you have “clear title”, that is absolute legal ownership with no unknown claims or debt against your property, for as long as you own the home.

Just as lenders require fire insurance and other types of insurance coverage to protect their investment, nearly all institutional lenders also require title insurance [a loan policy] to protect their interest in the collateral of loans secured by real estate. Some mortgage lenders, especially non-institutional lenders, may not require title insurance.

Buyers purchasing properties for cash, or with a mortgage lender, often want title insurance [an owner policy] as well. A loan policy provides no coverage or benefit for the buyer/owner and so the decision to purchase an owner policy is independent of the lender’s decision to require a loan policy.

Title Insurance is issued after a careful examination of the title abstract/commitment of the property and any liens or title defects are satisfied. While even a thorough title search performed by the most experienced and knowledgeable experts in the industry cannot ensure that no title defect exits, some problems just aren’t revealed in public records.

Unlike other types of insurance that charge an annual fee, title insurance is paid only once in full at closing.
Title insurance protects the owner(s) the entire time of ownership of the property insured from any hidden title defects that existed prior to the issue date of the policy.
An ‘Owner’s Title Insurance Policy’ is based on the purchase price of the property. The State of Florida Department of Insurance publishes title insurance standard rates (promulgated) which determine the amount of the premium. Our office charges the promulgated rate.

If a buyer is securing financing for their new purchase, the lender will also require a separate, simultaneous issued, ‘Mortgagor’s Title Insurance Policy’, to insure the amount of the loan. If an owner is refinancing their property, the new lender will require a lender’s policy.

While a refinance does not require new owner’s title insurance, by providing our office with a copy of the policy, will save you money with a reissue rate on the new lender’s policy, which is discounted and dictated by the state.

When buying or refinancing a property there are other fees charged to the HUD Settlement Statement by the title company.

Settlement Fee to Lawyers 1st Title – This fee covers the costs of preparing the documents and handling the actual closing.

Recording Fees – To record the deed, mortgage and any affidavits.

State/ County Tax – Only applicable if you are getting a mortgage.

Property Survey – Optional if paying cash but required if getting a mortgage.

Get your family and your property the protection they need from unforeseen circumstances.
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