Title Insurance: A Lawyer’s List Of FAQ

Title insurance is a policy given by an insurance company that guarantees a title of a parcel of real property that is clear of any claims and properly registered in the name of the owner and that the owner has the right to sell the property.

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If you are a buyer, the first thing that you need to do is to always verify if the seller really owns the property and check all the records about the property. Make sure that you will buy a property with a clean record. With this, you need an assistance of any attorneys title services in Jacksonville, Florida to make sure that that the property is free of any clerical errors, mistakes in examining records, unknown liens or any fraud issues about the title of the property. Contacting a law firm that specializes in title and closing services makes things run smoothly.

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Buyers need two policies, either an owner’s policy which protects them or a lender’s policy, which safeguards the lender. Below are FAQ about title insurance.

  • What is the coverage that I need?

Owner’s policies usually protect against a number of contingencies, such as fraud, forgery, undisclosed heirs and spousal claims. So if you want additional coverage then this could boost the insurance cost. Your lender may require additional insurance on the property.

  • Are the prices regulated?

You need to look at two factors: the quality of insurance and the title search. Your goal is to find a title company or attorney that will do a search and an underwriter that will be there in 10 or 15 years if there will be some problems that will occur in the future. Ancillary expenses like wire transfer or courier fees still add up so make sure to ask the complete transaction price, not just insurance costs.

  • Who pays?

There are two parties responsible for paying for the policies, the buyer and lender but this differs from one state to another. In some instances, the buyer pays for one, the seller, the other. There is a substantial discount if you are buying the owner’s and lender’s policies from the same company.

  • How much reassurance do I need?

Banks and insurance companies should not go under but in practice, they do. This has been a fact. If you want to verify that the underwriter who is issuing the insurance policy is currently sound then check its financial solvency with some rating companies such as Fitch Ratings and Demotech Inc.