Title insurance protects both lenders and buyers of properties from suffering loses in the event of a defect in the title, which could result in ownership claims in the future. The insurance policy will depend on the current market value of the property at the point of buying the purchase.
Below, we take a look at southwest Florida title insurance, why you need it and everything about it. Let us get started.
Reasons Why Title Insurance is necessary
https://heightstitle.com/wp-content/uploads/2020/01/southwest-florida-title-insurance.jpgIn southwest Florida, a title represents ownership of land or real estate property. Most people disregard insuring their title alongside perils insurance. It is vital to insure your title since risk can lead to loss of money. It can also lead to loss of property.
Some of the risks include; forgery of documents, failure to disclose liens, fraudulent divorce and errors in the public documents. There could also be a dispute in the boundary, unpaid taxes and fake owners.
During the insurance process, an agent will search for your title to ensure there’s no existence of the above defects. Once everything is clear, you can now sign the policy. However, sometimes a search may not clear all the errors, and that is why you need title insurance.
Title insurance in Southwest Florida will protect you and the lending institutions against all losses you may incur in case there is a lawsuit to contest the title. Similarly, you will get reimbursements on the amount as stated in your insurance policy should there be a risk.
What are the different types of Southwest Florida title insurance policies?
Typically, there are two options of title insurance you can choose in South-west Florida. These are policies that cover you as the owner. Here, there are unique claims which are stipulated in the agreement. The other type is one that covers the lender against any financial loss for money lends to the property owner for acquisition. A lender can be a bank or an individual.
What is the cost of title insurance in southwest Florida?
In Florida, there is a guideline as per the amount of premiums payable when it comes to title insurance. You can find the rates from the “Florida Administrative code, chapter 690-186.”
If the property is highly valued, the amount you pay for the premium will be equally high. Other than the premiums, you will also pay agency charges, although the amounts vary depending on the agent. However, you can negotiate the fees with your broker.
A title insurance premium differs significantly from other premiums in that it is a one-off payment. Therefore, once you pay, there is a guarantee that your land or property has coverage as long as you are the owner. Notably, thus you cannot transfer this premium to a new property owner should you decide to sell the property or transfer ownership to a loved one.
Once you complete the transaction, the last step is known as closing, where the title changes hand from the seller to the buyer. It can take place anywhere, and there are agency and attorney fees agreed by respective parties. After the legal process is complete, then the insurance provider delivers the policy.
In South West Florida, there are many real estate transactions, and errors are likely to exist. It is worth noting that title insurance does not mean future fraud cannot occur on the property. However, it ensures you get compensation should such a claim arise.