Southwest Florida Title Insurance & Real Estate Blog -

What is Title Insurance?

You are in the process of purchasing a new home and someone asks if you are getting title insurance? You think to yourself, what is title insurance?

I’ll answer that question in just a moment. But first, buying a new home is typically one of the biggest purchases you’ll ever make in your life and it can be extremely overwhelming!

Although most people don’t think about it, you want to be sure when purchasing a new home that there are no problems with the home’s title.

You also want to be sure the seller really owns said property. But how can you be sure?

Get title insurance!

Boom. ↑ There’s your answer. 🙂

Title Insurance insures an owner of real estate against the loss occasioned by defects in, liens against, or other conditions rending the owner’s title to the property unmarketable.

Problems with the title can limit your use and enjoyment of the property as well as create financial loss. Owners Title insurance creates peace of mind!

What is the process? The process is very easy! Once your sales contract has been accepted…

A title professional will search the public records to look for any problems with the property. This search involves a review of land records for the past 30 years.

It is very common that title searches reveal problems that a professional can fix before you go to closing.

I spoke with Kristen who is the closing manager at Winged Foot title and she provided me some examples of problems she sees on a regular basis such as:

  • Certified credit card judgments for homestead properties
  • Outstanding prior mortgages for current owners that have not been recorded
  • and city and or county lot mowing liens

Often, title problems occur that cannot be found in the public records. To help protect you in these events, we recommend that you obtain an Owner’s Policy of Title Insurance to insure you against these potential problems.

Owner’s title insurance is called an Owner’s Policy and is issued in the amount of the purchase price. It is a one-time fee at closing and lasts as long as you have interest in the property.

This policy is in place to protect the buyers should a covered title problem arise. The Owner’s Policy provides you the guarantee that your title company will stand behind you.

There are two types of title insurance. Owner’s title insurance, as mentioned above, and Lenders title insurance, also called a Loan Policy.

When do you need a Loan Policy? Most lenders will require a Loan Policy when they issue you a loan (a.k.a. a mortgage). The Loan Policy is typically 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.

If you have questions such as the cost of title insurance or any others pertaining to this subject, please call us at 239-985-4142 for more information on owners title insurance.

When you’re ready to get started, you can request a free quote on title insurance.

-Jillian

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NOT LEGAL ADVICE: This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area. This information is not intended as legal advice and may not be used as legal advice. It should not be used to replace the advice of your own legal counsel.

Winged Foot Tite, LLC is not associated with the government, and our [short sale orchestration] service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.