Purchasing a home is one of the biggest decisions someone could ever do in their life.
If you’re looking to buy property in Florida, it’s important to learn about the legalities of buying a house. One of the processes you should be familiar with is the Title Insurance process.
In this article, we will discuss common terms and steps that you need to know about the Title Insurance Process.
What is Florida Title Insurance?
When buying a home, title insurance protects you from any faults that might arise that happened before you purchased the property. Having Title Insurance is the best way to protect yourself from legal expenses due to defects in the title that you purchased.
What are the common issues that cause a loss of title?
Title Insurance protects you from the risk of the following issues:
• Fake and forged wills, deeds, or releases
• Fake ownership
• Unpaid real estate and gift taxes
• Deed errors / fraud
• Legal documents errors
Is it required to have Title Insurance?
Getting Title Insurance is usually required for those who purchase a house through a mortgage. Title Insurance gives the mortgage lenders assurance and protection of their interests.
If you buy a real estate property in cash, having Title Insurance isn’t required. However, if you don’t have title insurance you won’t have protection against potential loss if there’s a defect in the title of the property you bought.
Florida Title Insurance process
If you want to further understand the whole Title Insurance process, here’s a step-by- step guide for you:
Request for Florida Title Insurance & Record Search
If you want to get Title Insurance, the first step that you should take is to request Title Insurance from a reliable provider.
After the request, the title agency will conduct research on historical records of the property you’ll purchase. The goal is to know the current state of the property- specifically if there are any problems with it.
Title Examination
The title insurance agency will examine all of the property title documents and records to provide you with an accurate title report. Once they’ve gathered all of the documents and done with the examination they’ll create an interpretative analysis to know if they will affect the title document.
Issuance of Binder
The next step of the process would be the issuance of a binder conducted by the agency. A binder is a document that specifies your title insurance’s coverage with the purpose of protecting you and the seller during the buying process.
Cloud Clearing
Cloud means any problems or irregularities in the property ownership that could stop you from buying the real estate property. The title agency office will contact the parties involved to get a judgment and clear the title.
Premium Payment Closing
After the four processes mentioned above, you can then proceed with the one-time payment of your title insurance policy.
Issuance of Policy
Once your payment is processed, the title agency will issue your policy. Title Insurance gives you peace of mind and security against huge financial losses. That’s why even when it isn’t required when you buy the property in cash, it is still recommended to buy it.
