If you are considering buying property in Florida, be aware of the importance of insurance. In particular, title insurance is especially important. Fail to obtain title insurance and you’ll move forward with an insecure investment.
You’ve worked too hard to put your money at risk. This is our Florida bankruptcy attorney’s guide to title insurance in the context of real estate.
The Basics of Title Insurance
Title insurance is a type of indemnity insurance that safeguards the owner and lender against potential financial loss. Such losses stem from defects in the title to the property. Title insurance is not the same as conventional insurance that guards against events that arise in the future. Rather, title insurance guards against potential claims made against prior occurrences.
If you were to buy property in Florida without title insurance, there would be no protection against legal claims. Title searches pinpoint title defects ranging from encumbrances to liens and more.
This form of insurance guarantees that claims against the title to the property can be successfully defended in a court of law. Moreover, such insurance provides coverage for potential losses related to those claims.
The Peace of Mind Every Florida Homeowner Needs and Deserves
There is a chance that no claims will be made against the property’s title. In general, liens, encumbrances, and other claims are uncommon. However, such claims are possible.
If you were to buy a Florida house or other property without title insurance, you wouldn’t sleep soundly. Title insurance guarantees the title to the property is sufficiently insured, providing a truly invaluable peace of mind. You’ll rest easy with title insurance in hand, knowing there is an indisputable right to your property.
Florida Real Estate Transactions and Titles Are Fallible
There is a common misconception that all real estate deals in Florida are executed with flawless precision. The little-known truth as reported by the American Land Title Association is that 25% of real estate transactions have errors prior to the sale or transfer of a party.
More than $300 million in title insurance claims are paid every single year. Such payouts often result from:
- Human error
- Signatures under duress
- Contestation of a will
- Outright fraud
There is no sense risking your hard-earned money on a property when relatively affordable title insurance is available to offset that risk.
Protect Your Property
Title insurance ultimately constitutes a form of protection for both homebuyers and lenders. If there is even a slight defect in the property’s title, this insurance will prove invaluable. Oftentimes, the homebuyer pays for title insurance on behalf of the lenders as a form of protection.
Owner title insurance is another form of protection, paid by the property seller to safeguard the purchaser’s property equity. If there is a falsified document, false ownership, or a flaw in records, the insurance will kick in for prompt protection.
Learn More During a Consultation With Our Florida Bankruptcy Attorneys
Bankruptcy does not have to ruin your life. Contact our bankruptcy specialists today for invaluable assistance. We’ll guide you through the legal process of bankruptcy to help you transition to a new beginning. It all starts with an initial consultation.