Did you know a title claim can come from a third party at any time even after you're purchased your home?
Buying a home can be stressful enough and the last thing you want is to have to worry about someone coming by and claiming they have legal rights to your property. During the home buying process, you're going to have to decide if you want to purchase title insurance.
If you don't know what that is, don't worry, we are here to help. Below, we discuss what title insurance is and why you need it for your next purchase on the Emerald Coast.
The title shows that you are the owner of the property and have legal rights to it. Title insurance is a way of protecting yourself and the lender from anyone who makes a claim against your property or if any defects come up.
There are two different title insurance policies. Owner's title insurance will protect you financially, and while it's not required it is recommended by title companies, title agents, and most real estate professionals. A lender's title policy protects the lender and may be a requirement if you're taking out a mortgage loan.
Title insurance protects you from a number of different things. Your title agent at Emerald Coast Title Services will search for any defects prior to closing so hopefully, all issues can be resolved before signing. After closing, there's always a chance that something unforeseen could happen.
If the previous owner had a lot of debt, such as unpaid mortgages that weren't caught before closing, you'll be protected if you have title insurance. You don't want to be responsible for someone else's debt.
It will also protect you from undisclosed or conflicting wills that may arise. Liens, easements, and encumbrances could also be issues you could deal with after closing but title insurance will ensure your ownership is safe.
You don't want to risk not being safe from someone else mistakes such as fraud and clerical errors. Your title insurance policy will cover legal fees that may be required too.
Keep in mind that title insurance and homeowner’s insurance are different. Homeowner’s insurance is going to protect your physical property.
For example, if your home sustains damage from a storm, you'll be covered by homeowner’s insurance, but it won't cover your right to the property.
Title insurance is a one-time fee that you'll pay at closing. It will cost you about 0.5 to 1.0 percent of the purchase price. Homeowners insurance is a yearly, recurring fee.
There are many benefits to having title insurance on your new Florida home, but the best one is having peace of mind. You won't have to worry about someone taking your property or challenging your ownership. We hope you found this article helpful.
If you're buying a home, contact us here at our real estate title company. We've helped thousands of people with their purchases, and we can answer all your questions.
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