title faqs

When a property is financed, bought or sold, a record of that transaction is generally filed in public archives. A title is the foundation of property ownership. Anyone who purchases real property also obtains a title to the land in the form a Deed. The title is the buyer’s legal right to possess the property and use it within the restrictions imposed by zoning codes or other established limitations.  If you are the Buyer of an existing home, the right title insurance policy can protect you from financial risks associated with the title deed 

Title insurance is different than most other types of insurance you are familiar with. A typical insurance policy (auto insurance, home insurance etc.) covers things that could happen in the future, whereas a title insurance policy will cover unknown events or circumstances that may have happened in the past or are just coming to light now. In other words, title insurance protects your rights to the property. A title insurance policy can protect your investment against undisclosed liens, legal judgments, forgeries, fraud, and a host of other potential legal or financial problems that can arise when purchasing. Even though you'll pay for this policy only once, your coverage will last as long as you own your home. 

There is no legal requirement in Florida real estate law to purchase an Owner's Title Policy. Owner’s title insurance, though not obligatory, is a wise choice for the buyer to invest in since it can make the owner whole should an unforeseen title dispute result in the loss of part or all of a property. Although the title underwriters, examiners, and agents do everything they can to make sure your title is clear before closing, the most skilled title professionals may not find all problems associated with a property. Some risks can include:  

• A defect in title caused by forgery, fraud, undue influence, duress or incompetency
• A defect in title caused by undisclosed prior mortgage or other liens
• No right of access to and from the land
• A defect in title caused by improper execution of documents
• A defect in title caused by documents not being properly filed, recorded or indexed in the Public Records

Unlike your homeowners and insurance premium which is paid for EVERY year,  title insurance is a mono-line insurance which means you purchase the policy once and it protects you for the entire time you own the property. Often, the single premium paid alongside the proceeds of a real estate transaction is worth the peace of mind that such a loss is likely to be covered by the policy.

If you take out a mortgage loan when you buy your property or refinance and existing property, your lender will require a loan policy of title insurance. This protects the lender's interest in your property until your loan is paid off or refinanced. It also protects the lender from ownership disputes that could result in the mortgage no longer being paid off.  Lender’s policies are typically paid for by the buyer of a property as they are the party that takes out the loan to make the purchase.

Title insurance is promulgated by the state of Florida and can not be reduced. The Owner's Policy is based off the purchase price and the Lender's Policy is based off the loan amount. 

Click the link below to calculate what your premium would be on your policy: