Potential Title Issues to be Aware of
Before you take that leap of faith and jump right into buying your dream home, you should make sure that you know what you are getting into and how to protect one of the biggest investments of your life by consulting an experienced title company. Most people do not deal with title companies on a day-to-day basis and are therefore unsure of what exactly they do. This is why Florida Home Title Company is here to help you understand what a title company does and why you need title insurance.
When you invest in property you are not actually buying the physical house and property itself. Instead, you are buying the title to that property and the right to live on it and use it as you see fit. A title company does two important jobs when it comes to the title of your house. First, they will do a title search to check for any hidden title hazards such as outstanding debts, other people who may have a legal claim on the property, or incorrect information on the title. If the title search does not turn up any concerns then it considered insurable. However, a title search may not always uncover all possible hazards. This is where the second responsibility of a title company comes in. For a one-time fee paid at closing, a title company will provide title insurance.
There are two types of title insurance, mortgagee protection and owner coverage. Essentially they both insure for the same thing – hidden title hazards. Mortgagee (or lender) title insurance is there to ensure your lender that their investment is secure and it isrequired by most lenders before they provide you with mortgage money. Owner’s title insurance is in effect for as long as you (the policy holder) or your heirs have an interest in the property.
Title insurance is your last defense against title hazards which may include deeds, wills and with improper wording or incorrect names, outstanding mortgages or a lien against the property because the seller has unpaid taxes, other pending legal issues that could affect the purchaser, incorrect notary acknowledgements, forged signatures on the deed, an unknown heir of a previous owner claiming ownership, or errors in the public records.
All of these potential title hazards could result in you either losing title ownership of the property or not being able to transfer the title into your name. If you experience one of these issues, your title company and insurance will either correct any errors in the title deeds or cover you for any claims and offer financial protection.
There are many other hidden title hazards that could interfere with your plans to own your dream home. However, with the right title company on your side, you can rest assured that your investment is in the safest hands. If you have any other questions about title insurance and how it can help protect you and your investment call Florida Home Title Company today.