Title protection works like a standard protection strategy, which secures against future disclosures about the subject property, some title-related and some non title-related.
What is Title Insurance?
So what exactly is “title insurance?” Well, when a property is financed, bought or sold, a record of that transaction is generally filed in public archives. Likewise, records of other events that may affect the ownership of a property, like liens or levies, are also archived.
When you buy title insurance for your property, a title company searches these records to find – and remedy, if possible – several types of ownership issues. First, the title company searches public records to determine the property’s ownership status. After this search, the underwriter will determine the insurability of the title.
Even the most skilled title professionals may not find all problems associated with a property, though. Some risks, such as title issues due to filing errors, forgeries, or undisclosed heirs, are difficult to identify. So after the title company finishes its searching, it also provides a title insurance policy that will help protect you from a variety of issues that might be uncovered later.
Source: http://www.firstam.com/ownership/videos/what-is-title-insurance/
What is owner’s title insurance?
Owner’s title insurance provides protection to the homeowner if someone sues and says they have a claim against the home from before the homeowner purchased it.
When you purchase your home, you receive a document most often called a deed, which shows the seller transferred their legal ownership, or “title” to their home, to you. Title insurance can protect you if someone later sues and says they have a claim against the home from before you purchased it. Common claims come from a previous owner’s failure to pay taxes or from contractors who say they were not paid for work done on the home before you purchased it.
Most lenders require you to purchase a lender’s title insurance policy, which protects the amount they lend. You may want to buy an owner’s title insurance policy, which can help protect your financial investment in the home.
Source:https://www.consumerfinance.gov/ask-cfpb/what-is-owners-title-insurance-en-164/
Artesian Title – Florida Legal Specialists offer a real advantage.
Florida is our home. We’re from here. We hire people here. We know the areas, the properties, the various real estate laws that make Florida a special place to live and buy a home in. We have a vested interest in improving the “state of real estate” in Florida and we are excited to be able to play a role doing just that. We serve home buyers and sellers throughout the sate and have offices Orlando, Tampa, Ft. Lauderdale, Boca Raton, and Miami.
Artesian Title provides closings with a concierge touch. Our mobile, licensed “Concierge Closers™” are yours when and where you need them. They come to you when you call. They work to your timetable. They communicate in ways you prefer—They’re ready to answer all your questions and provide every document at a moment’s notice Add that to our weekly email—Peace of Mind Fridays™—that provides a progress update on the status of your title case and the real differences with Artesian are truly significant.
Source: https://artesiantitle.com/
What is lender’s title insurance?
Lender’s title insurance protects your lender against problems with the title to your property-such as someone with a legal claim against the home. Lender’s title insurance only protects the lender against problems with the title. To protect yourself, you may want to purchase owner’s title insurance.
Lender’s title insurance protects your lender against problems with the title to your property-such as someone with a legal claim against the home. Lender’s title insurance only protects the lender against problems with the title. To protect yourself, you may want to purchase owner’s title insurance.
Lender’s title insurance is usually required to get a mortgage loan. Lender’s title insurance protects your lender against problems with the title to your property—for example, if someone sues to say they have a claim against the home. Lender’s title insurance does not protect your investment in the home (your equity). If someone sues with a claim against your home, you are the first person responsible. The lender’s title insurance policy only covers claims that affect the lender’s loan. To protect your equity in the event of a title problem, you may want to purchase an owner’s title insurance policy.
Source: https://www.consumerfinance.gov/ask-cfpb/what-is-lenders-title-insurance-en-163/
What Could Happen If You Don’t Get Title Insurance?
Here’s how things could go wrong. At the most extreme, the seller may knowingly try to sell you a home he or she doesn’t own. There have been instances of renters posing as sellers. However, typical title issues are less worthy of a crime show, but more complicated. For example, the seller might have co-purchased the house ten years ago with a brother he hasn’t talked to since and is unaware that he now needs his brother’s signature to sell. Or a problem might be lurking in the more distant past. For example, the seller might have bought the place from a single woman, not realizing that her ex-husband still co-owned the property and hadn’t signed off on the sale as required. Or the seller might have inherited the house under the terms of a will that — oops — turns out to have been out-of-date and a more recent will leaves the house to someone else.
Not all title problems involve the whole house. For example, liens may have been filed against the house — that is, people or agencies may have, within the public records, legally claimed the right to be paid from the proceeds of the property’s sale, in order to settle the owner’s debt to them. Typical debts include taxes, child support, and contractor’s fees. These liens stick to the house like glue, until the house is sold or foreclosed on.
In any of these situations, title insurance will step in to help. One important note on co-op housing: If you’re buying a co-op, where you won’t actually own real estate (just shares in a corporation), no title insurance is needed.
Source: https://www.nolo.com/legal-encyclopedia/title-insurance-buyer-needs-36126.html
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