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6 Common Questions and Answers About Title Insurance

Posted on: October 30, 2017

What is title insurance?

Title insurance is a form of insurance that protects both lenders and real estate owners against financial
losses as a result of previously undiscovered title defects or disputes.

It protects against a full range of scenarios including tax liens, inaccurate names, beneficiary claims,
easement disputes and other unanticipated problems that may be difficult if not impossible to uncover
during a standard title search by a Fort Lauderdale residential real estate lawyer or title company.

What are the main types of title insurance policies?

There are two basic types of title insurance policies; the owner’s policy and lender’s policy. The lender’s
policy protects the lending institution in the event of a title dispute. This policy is required until the
mortgage is fully paid off. The owner’s policy protects the property buyer and his/her equity from title-
defect related costs and losses.

What situations does title insurance protect against?

Title insurance protects against just about anything related to a title defect including: fraud, mechanic’s
liens, tax liens, forged documents, fraud, undiscovered heirs, suppressed wills, unrecorded easements,
encroachments, improper document procedures and many other circumstances.

Is it obligatory to purchase title insurance?

Typically yes, if you need a mortgage. Lenders will require title coverage for the loan amount so that
they are not obligated to cover any costs related to a title dispute such as late mortgage payments or a
default. The cost will vary depending on the value of the property and the mortgage amount.

Why pays for title insurance?

It’s customary for the buyer to pay for title insurance and decide on the title company or closing
residential real estate lawyer in Broward, Miami Dade and Sarasota counties. In some cases, the seller
may decide to cover this cost or lower the price of the property to cover the buyer’s title costs.

Can an attorney obtain title insurance?

Yes, in Florida a Fort Lauderdale residential real estate lawyer can be hired to obtain title insurance,
perform a title search, and also fully manage the real estate closing.

This is often a wise decision because the costs are comparable to hiring a professional title company.
However, the advice of an attorney can prove to be invaluable when it comes to aspects such as due
diligence, reviewing the purchase agreement, and other aspects of managing your closing.

Call Schecter Law today at (954) 779-7009 if you have any questions or concerns about your title search
or title insurance.