Title Company Near Me: What Sellers Need to Know
If you’re selling your property, and looking for a title company near you to facilitate the transaction, pay attention to where you’re situated.
In most states, the seller is liable to pay for the owner’s insurance policy. In Florida, however, this varies from county to county. Here in Broward County, the buyer is responsible for purchasing the title insurance.
Nevertheless, the seller does have an obligation to provide a marketable title. But what does that mean, and how does it affect the title insurance?
Marketable Titles
When selling a property, the seller needs to provide evidence that they actually own the real estate in question. This is what we mean by the ‘title’: all the documentation that proves ownership.
A marketable title, then, means that this title is ready for the sale with no encumbrances. In other words, to the best of the seller’s knowledge, there are no outstanding claims on the title, and no defects that could invalidate the title.
A marketable title does not mean that the title is completely free from defects. Almost every title has some kind of outstanding payment or easement on it. Rather, it is assumed that it is the seller’s duty to resolve or disclose these issues.
The responsibility for the seller to provide a marketable title, however, is an implied rather than explicit obligation. The buyer expects that the seller acts in ‘good faith’ by providing a title that can be transferred without significant complications. If the seller cannot provide a marketable title, the buyer is allowed to withdraw from the transaction and be refunded for any deposit or money already paid.
Deed Warranties
One way to protect both parties’ interests is with a deed warranty. In this document, the seller vows that they have the valid title, that they are allowed to transfer the title, that they have disclosed all encumbrances, and that they will reimburse the buyer for losses associated with claims against the property.
Why You Need a Title Search and Insurance
If the buyer accepts the title and purchases the property, only to find that there is an issue with the property at a later stage, the seller is no longer liable to refund the buyer for any loss. This is why it’s essential to have a thorough title search performed for any real estate transaction.
Presumably, the seller had a title search performed and bought their own title insurance when they purchased the property. But, even if they believe that the title is valid, there may be issues that have cropped up since their title search. For instance, a utility easement may be put in place if the local municipality installs new fiber-optic lines in your neighborhood. The buyer should know about this before deciding whether or not to buy the property.
There are also title hazards that are unforeseen by both the buyer and seller. For example, if an undisclosed heir comes forward with a claim to the property, this may be through no fault of the seller. This is why title insurance is also important – it covers the current owner in the event of an unexpected issue.
Many buyers and sellers go through title companies, realtors, and their respective attorneys to perform the search, review the documents, and draw up the paperwork for the transaction. Florida Home Title Company, as an attorney-run business, has the legal expertise to perform all of these tasks – streamlining the entire process for sellers, buyers, and realtors. Contact us for more information about our services.