Knowledge Mondays – What is Title Insurance?
Title insurance in real estate transactions protect buyers and mortgage lenders from financial losses that may arise from any defects that arise after ownership of the property is transferred to the buyer. Issues that are uncovered with a title search may arise with a property after closing, thus title insurance is a crucial protection for buyers. With the additional layer of protection, a buyer is protected from:
A defect in title caused by forgery, fraud, undue influence, duress, or incompetency,
A defect in title caused by undisclosed prior mortgage or other liens,
The possibility that the seller or previous sellers did not have clear ownership of the property,
The possibility of a claim of ownership to your property from a third party,
A defect in title caused by improper execution of documents, or
A defect in title caused by documents not being properly filed, recorded, or indexed in the public records.
A buyer may secure a title company during the closing period and pay for the title insurance during closing. Title insurance is usually required when there is a mortgage on the property. The amount a buyer has to pay for title insurance in South Florida varies depending on the purchase price and county of the property. In Miami-Dade and Broward County, buyers will have to pay $575.00 for a property valued at $100,000. If your property is valued at more than $100,000 then as a buyer you will have to pay $5.00 for every $1,000 the property is over $100,000. This means that title insurance will be $2,075.00 for a property that is purchased at $400,000.
If you would like to discuss title insurance or your property purchase contract, schedule a consultation with the experienced attorneys at Alvarez Law Group today. Call us at (786) 620-2820 or email firstname.lastname@example.org to schedule a consultation.
*Disclaimer: this blog post is not intended to be legal advice. *