Buying a home is the biggest purchase that most people will ever make it is important that all home buyers are aware of the nuances of title insurance.
Title insurance to cover the buyer is no longer mandatory however coverage for the lender is still required. Title insurance is a one-time charge and a smart choice for anyone buying a home in Florida. Here are common title problems.
Title insurance protects the buyer against loss or damage due to defects in the title. An example of a title defect could be a prior recorded mortgage, judgment lien, tax lien, and an environmental lien, notice of pending legal action, easement, restriction, or burdensome covenant running with the land.
Title Companies in Florida are not equal.
Not all Title Companies are quality companies. Florida is known for shoddy title work and most Title Companies have an
affiliate partnership with the real estate listing office. This means that the listing office is feeding the business to the title company, so logically there may be loyalty to the seller (and their agent) instead of the buyer.
These title companies typically will not rock the boat to dig deep to look for title issues and may use exclusions to the title policy. Using the sellers title company is not ideal, as they may exclude defects, liens or encumbrances from the title coverage.
Who pays for Title Insurance?
Either party, the buyer or the seller, may pay for the new owners title insurance as it is a negotiable item in the purchase contract. Whomever pays gets to choose the title company.Title insurance, which is rated like auto insurance, is only as good as the Title Company doing the review and the underwriter that is writing the policy.
Should the Home Buyer hire an attorney?
It is advisable that the buyer pay for their own title insurance and hire a competent title attorney to provide the title insurance and scrutinize title issues.
Just like every home buyer needs their own agent, it is smart to have someone on your side writing your title policy and closing documents. At minimum, it is advisable to at least have a real estate title attorney to review all your closing documents for accuracy.
Buyers Broker of Florida can recommend several Florida Title Attorneys or you may select one on you own. Buyers Broker of Florida has no affiliate business arrangement with any Title Company and as such they receive no financial benefit from anyone they may suggest.