Title Insurance Services in
Real estate transactions in Florida require a "clean title." In other words, the seller of a property is supposed to pass a title that's free of liens and encumbrances to the buyer, as they are the new rightful owner.
However, there's a lot that can be wrong with the title of a property that the seller may or may not be aware of. That's where title insurance comes in — it's a safety net for buyers and lenders that covers any issue that may come up with the property title.
Our licensed title agents provide title insurance throughout Pinellas County, helping buyers and lenders alike feel secure in any real estate transaction. Here's how title insurance acts as a safeguard and why it's best to entrust this service to an experienced local title company.
What is Title Insurance?
In short, title insurance protects property owners and real estate lenders from losses or ownership disputes caused by issues with a property's title.
Real estate transactions are complicated. One of the most important aspects of any real estate transaction is transferring ownership from the seller to the buyer, which requires passing a clean title.
Whether there are fraudulent property records, unpaid taxes, false ownership, or any other title problems that cause a headache for everyone involved, title insurance is a worthwhile safety net.
A title needs to be legitimate and free of defects to be transferred. There can't be anything affecting the validity of a title, whether it's a problem as small as a document someone forgot to notarize or as big as years of unpaid property taxes.
A title with defects can cause major problems for the lender and new owner of a property: it might mean they never obtained rightful ownership in the first place or can cause them to lose money when they go to sell the property years down the road and only discover problems with the title at that point.
Why is Title Insurance Important?
Types of Title Insurance
There are two main types of title insurance: a lender's policy and an owner's policy.
Lender's Title Insurance Policy
When you finance a home with a mortgage, most lenders require a lender's title insurance policy.
Lenders want to protect their investments with title insurance. They're about to loan the buyer a ton of money to purchase a home and need to make sure there aren't any title issues that might compromise that transaction.
Owner's Title Insurance Policy
The owner's title insurance policy is to protect the buyer. With this insurance policy, the buyer is not held legally or financially liable for any title defects that occurred before they purchased the property.
The best part? This protects the home buyer the entire time they own the property, whether it's for two years or twenty.
Benefits of Title Insurance
The main goals of title insurance are to:
Getting a mortgage on a home is a big deal for both the home buyer and the lender. Obtaining title insurance protects both parties from any risk that might arise due to title defects.
Reduce Financial Loss
If someone purchases a home thinking the title is good to go, only to find out there are problems with the history of the title when they go to sell or refinance their home, they could lose a significant amount of money. Title insurance ensures their finances are protected from any losses associated with title problems that existed before they purchased the home.
Uncover Potential Issues
When title insurance is purchased, a thorough title search is conducted. This search is supposed to uncover any title defects and discrepancies in an attempt to get ahead of any potential issues.
What Does Title Insurance Cover?
Title insurance covers virtually anything that could be wrong with the title of a home, including:
Do I Need Title Insurance in Florida?
Yes, Florida law requires title insurance for all real estate transactions. Both parties need valid title insurance to transfer property.
However, the law doesn't state how much coverage is required. That's why it's best to work with an experienced title company that knows the exact coverage you need to protect your investment. Plus, they'll be able to find a solution that works with your budget.
Even if it wasn't a legal requirement in Florida, it's still beneficial to purchase title insurance, as it can prevent a lot of headaches down the road.
Experienced Pinellas County Title Company
Our team of licensed title agents provides comprehensive title insurance and effective real estate closings. You can trust us for all of your title insurance and closing needs — we provide the high level of attention and quick communication required to quickly close deals.
Call us today at 727-339-7728 to speak with a licensed title agent!