Why Do Buyers Need Title Insurance When They Buy Homes In Fort Lauderdale?

It has been well documented that buyers acquiring homes in Fort Lauderdale will more than likely be making their single largest investment in their lifetime. Therefore it is very important that your investment in a home is protected against any potential defects in the title conveyed to you. A defect in the conveyance of title could cause you to lose your home.

While many buyers understand the need for hazard and windstorm insurance here in the Fort Lauderdale real estate market, many homebuyers are unaware of the problems associated with defective title.

Imagine someone claiming that they own your home. Title insurance protects you in the event of such claim and will cover any losses or damages that you may incur due to any defects in the title of the property or legal expenses incurred in defending your home in court.

There are essentially two types of title insurance policies, the owner’s policy and the lender’s policy. The owner’s policy protects the buyer’s equity in the property up to the purchase price. The lender’s policy protects the lender’s interest in the property as security for the outstanding balance of the buyer’s mortgage.

A title is the means by which a person or persons may acquire a right of ownership in real property. The title gives the owner the right to possess, use, and enjoy that real property. It also gives the owner the right to sell and/or convey that property.

Your title insurance policy is a one time paid premium that will protect you and your family as long as you have an interest in the property at no additional cost. If a claim is ever made against your title as covered by your policy, the title insurer will protect you by bearing the cost of settling the claim should it prove valid, in order to protect your title and keep you and your family in possession of your property.

A real estate transaction may become complicated when there are issues that may affect the rights of individuals who claim a right to a particular piece of property. Issues such as: Bankruptcy, Defective Deeds, Missing Heirs, Clerical Errors in Records, Forgery, Wills, Fraud, Mental Incompetence, Marriage & Divorce, are just a few of the problems that may surface, and could pose a threat to your title being free and clear of claims by others.

Depending on the title company, consumers can choose among a variety of options, but the top three choices are Owners, Lender’s and Extended Coverage.

Basic Owner’s Title Policy Coverage:

Clear title to the property
Incorrect signatures on documents
Forgery, fraud
Defective recordation
Restrictive covenants
Encumbrances or judgments

Basic Lender’s Title Policy Coverage:

Mechanic’s liens and unrecorded liens
Unrecorded easements and access rights
Defects and other unrecorded documents
Extended Owner’s Coverage
Building permit violations from previous owners
Subdivision maps
Covenant violations from previous owners
Living trusts
Structure damage from mineral extractions
Variety of encroachments and forgeries after title insurance is issued

It is therefore important to use the best closing agent to handle the research and process your real estate transaction for you.

I work with several competent and experienced attorneys who will ensure that you are protected from any claims of defective title when you buy a home in Fort Lauderdale We work with many buyers and investors who buy many homes in Fort Lauderdale and without exception none of my buyers have ever had a defective title claim filed.

My team and I want to make sure that your Fort Lauderdale home buying experience goes as smooth, pleasant, and stress free as possible and that is my goal with every client that I work with.

Many homes in Fort Lauderdale are protected from any claim of defective title. Most banks and mortgage companies won’t lend without title insurance being in place. Title insurance protects the lender and it will also serve to protect you as long as you own your property.