Title Insurance in Florida
Buying a home is the biggest purchase that most people will ever make so it is important that all home buyers are aware of the nuances of title insurance.
Title insurance to cover the buyer is no longer mandatory however coverage for the lender is still required. Title insurance is a one-time charge and a smart choice for anyone buying a home in Florida.
Title insurance is always required in a financed purchase and not required on a cash transaction, however it is always advisable to buy it, even if it is not required.
What is Title Insurance for?
Title insurance protects the buyer against loss or damage due to defects in the title. An example of a title defect could be a prior recorded mortgage, judgement liens, tax lien, an environmental lien, notice of pending legal action, easement, restriction or a burdensome covenant running with the land. Here are common title problems.
Title Companies in Florida are not all equal…
Not all title companies are quality companies. Florida is known for shoddy title work and most Title Companies have an affiliate partnership with real estate listing offices.
This means that the listing office is feeding the business to the title company, so logically there usually is loyalty to the seller and sellers agent instead of the buyer.
These title companies typically will not rock the boat to dig deep to look for title issues and often exclude a title problem from the policy instead of fixing it. They may exclude defects, liens or encumbrances from your coverage.
Who Pays for Title Insurance?
That is a negotiable item in the contract, so either the seller or the buyer may pay. Whomever pays gets to choose the title company.
Title insurance is rated like auto insurance and is only as good as the Title Company doing the review and the underwriter who is writing the policy.
Should the Home buyer hire an attorney?
It is advisable that the buyer pay for their own title insurance policy and hire a competent title attorney to provide the title insurance and scrutinize all the documents.
Just like every homebuyer needs their own broker for quality representation, they also need a Real Estate Title Attorney to provide the title insurance and review all the documents for accuracy.
Buyers Broker of Florida can recommend a good Florida Title Attorney or you may select one on your own. We have no affiliated business arrangement with any attorney or title company and as such we receive no financial benefit from anyone we may recommend.