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Whether you are buying a new home for your family or you are investing in a piece of real estate, you are going to find that the entire process can be complex, including a lot of paperwork and terms you may have never heard of.

You will likely be told that a title insurance policy will have to be purchased at this time, too. But what is it? And who is responsible for it?

What is Title Insurance? 

Just as its name suggests, title insurance provides protection for the title to your property. In other words, it protects your right to the title. Let’s take a look at why this is so important.

Each time a property is transferred to a new party, a record of this is recorded with the county recorder’s office. Before the property changes hands, a deep dive into these records is performed by the title company. This is known as the title search.

The title examiner will review the transfers, confirming that the seller truly has the authority to sell the property, as well as look for any other records that may be attached to it, such as liens, judgments, outstanding taxes, levies, and so forth. Anything that shows up on the title search can either be handled prior to the closing or the file may not be cleared to close.

Despite their best efforts, things can still get missed in the title search. This could be due to an oversight by the title examiner or it could be due to an erroneous recording or forged/fraudulent document. Any title issues that may arise after you take ownership could impact your rights to the property.

A title insurance policy is your first line of defense.

Who Pays for Title Insurance in Florida? 

All of the costs of buying a home can really add up over time. Knowing whether or not you are going to have to be responsible for paying for title insurance in Florida can help you to plan ahead.

So, who pays for title insurance?

It is customary for the seller to pay for title insurance in most areas throughout the state of Florida – with the exception of a few counties, including Broward County, Sarasota County, Miami-Dade County, and Collier County.

Duval County, together with their neighbors, Clay County, St. Johns and Nassau County, primarily leave title insurance up to the seller to cover the fee as it is included in the closing costs.

Keep in mind that this is a customary practice and that the payment of title insurance can be negotiated between the parties.

Title Insurance at Kendall Title

Throughout the U.S., most states allow buyers to decide whether or not they want a title insurance policy for their new property. In Florida, however, there is no option – title insurance is mandatory when purchasing a piece of real estate.

If you are interested in learning more about title insurance, then the title experts at Kendall Title can help. We have extensive experience in all types of real estate transactions, from contracts to closings. Title insurance is our specialty.

To learn more, contact us today at (904) 230-1063.

Title insurance. Have you heard of it? 

Your title company is going to bring it up at a certain point if you are in the process of buying any piece of real estate. And, since title insurance is mandated in Florida, you have to purchase a policy at the closing. 

To make the most of it when you need it, it is a good idea to get to know what title insurance is. Let’s take a closer look. 

What is Title Insurance? 

Title insurance protects you from a financial loss that could be caused by a defect in the property’s title. 

Once you sign the initial contract to purchase the property, your title company will go to work diligently searching through all records pertaining to its history. They will make sure that the title is clear of any defects as well as confirming the seller has the authority to sell the property. That way, once you take title to the property, you can feel confident everything is clear. 

A few title defects the examiners are looking for include: 

• Judgments
• Liens
• Easements
• Encroachments
• Outstanding taxes
• Bankruptcies

Unfortunately, there are situations in which things can get missed during the title search. And they can appear at any time in the future – with you as the new owner and responsible party. 

Title insurance helps to protect you in this instance. 

Types of Title Insurance

There are two main types of title insurance – an owner’s title policy and a lender’s title policy. 

An owner’s title insurance policy protects you as the new owner of the property. With one premium payment made at closing, this policy will remain in effect for as long as you or your heirs own the property. 

A lender’s title insurance policy protects the lender only – not you. They are taking a risk in giving you the money for your purchase and want to make sure they are covered should something go wrong. As soon as your mortgage is satisfied, the lender’s policy is no longer valid. 

How Does Title Insurance Work? 

Now that you know what title insurance is, what do you do with it? 

Some people have a title insurance policy they never have to use. In this case, that one premium payment that was paid at closing truly becomes a just-in-case payment. However, there are many others that find themselves grateful for the protection. 

Moving into your home after closing can make you excited to step forward with your life plans for the future. Then, out of nowhere, you could receive news that puts your rights to your own property in jeopardy. This could be 6 weeks down the road, 6 months, 6 years, or even longer. 

Maybe it is an unknown heir that didn’t make the title search or maybe the prior deed was forged or forced under duress. A large judgment or lien could have been recorded erroneously – and now the creditor is threatening to take action. There are so many title issues that can arise, so, what do you do? 

With title insurance, you simply file a claim. That’s it. You don’t have to find yourself responsible for handling a legal battle or the hefty financial expense of fighting for your property rights. 

Learn More About Title Insurance

If you have questions about title insurance or would like to know more, it helps to have an experienced title team on your side. At Kendall Title, we have extensive experience in handling title work – from contract to closing. So, if you’ve got questions, we have answers. 

Contact us today at (904) 230-1063.