When thinking about buying a home, having title insurance is one of the most important things to consider.
Insurance for your property title is not like flood or hazard insurance, since it is paid at the time of closing on your house, with no extra renewals.
With rising amounts of fraud in the real estate industry, securing the investment on your new home is one of the most important decisions to make on your ownership claim. Title insurance protects buyers from titles contested based upon past rights and claims asserted by others.
A title search can show a number of title defects and liens, as well as other encumbrances and restrictions, which include (but not limited to) unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land. These types of claims can cause buyers to lose money or even worse… lose their home.
Below are six things you most likely didn’t know about title insurance, including how to find a Florida title company and obtain title insurance quotes.
1. Payment is due with Closing Costs:
Your title agent will research the property you’re purchasing and find any problems or liens with the past sales. From there, you close on the property and pay for the title insurance at closing. Since the total insurance premium is due at closing, it is included in your total closing costs.
2. Who Pays For Title Insurance Can Vary By County:
In many states, the buyer of the property pays for property title coverage unless your contract says differently. In Florida it varies per county and can be negotiated in the contract. Whoever pays for the title insurance typically chooses the title company. The buyer generally pays for title insurance and chooses the title company in the following counties: Sarasota, Collier, Miami Dade and Broward. If you are paying for the insurance, be sure to do your due diligence and choose the right title insurance company.
3. You’ll Need Title Insurance When Refinancing:
When you refinance your mortgage, you’re essentially applying for a new mortgage. If you choose to refinance, you’ll need to purchase a new lender’s title insurance policy. Your lender will most likely require it. If you already purchased title insurance policies when you first purchased the house, this shouldn’t be anything new. You will hire a title insurance company, which will check all the necessary documentation in order to ensure that you are the rightful owner of the property, as well as issue the lender’s title insurance policy.
4. Prices are Usually Regulated:
To help prevent differences from company to company, prices are regulated to create a fair standard. These regulations on average closing costs vary from state to state.
5. You Should Research the Title Insurance Company:
Title Insurance helps protect the buyer and the lender. Not to mention, it ensures the legality and validity of the title transfer. You should research title insurance companies carefully, read reviews and be sure they are in good standing in their community. Ensuring a clear and marketable title is extremely important, and only experienced title companies, such as Title Partners of South Florida
, can help ensure your closing goes smoothly with a clear title.
6. Saving Money on Your Title Insurance Is Easy:
Request a title insurance quote from an experienced Florida title insurance company. Don’t forget to ask about hidden charges and fees. These can make all the difference in your final closing costs. You should also ask if there are any discounts available for refinancing or purchasing a newer property.
At Title Partners of South Florida, we have an experienced team of professionals who have been serving the state of Florida since 1995. We understand the ins and outs of title insurance, and we’re here to ensure clear and marketable title and to help make your home buying and real estate closing experience as smooth as possible! For more information about title insurance and the closing process, download our free Homebuyer’s Closing Information Guide
, contact us online
, or request a free no-obligation quote online