What is Title Insurance and Why Home Buyers Need It

When buying real property in DeLand, don’t forget about title insurance. The title of any real estate determines ownership. But without a thorough title search, a prospective buyer will not know whether there are any liens, easements, encumbrances, or who is the real owner(s) of the property. These “defects” if they exist, may not only affect ownership but the value of the property as well.

Title Search

A title insurance policy protects the buyer from any defects that were not discovered during the title search. A title search is a thorough review of the property records to determine who is the legal property owner(s) and if there are any defects in the title. Some of the issues that can affect the title include liens, missing documents, incorrect signatures, improper deed transfers, etc. The results of the title search are presented at the real estate closing before deed transfer. For example, let’s say that after the deed transfer, the buyer discovers that there is a substantial property tax lien on the property. Without title insurance, the buyer would be responsible for settling the debt since they are the legal property owner.

Real Estate Closing

That’s why when obtaining a mortgage on the residential or commercial property, the lender will require the buyer acquire title insurance to protect the lender’s interests. In Florida, the seller is responsible for the cost of title insurance. A lender’s title insurance doesn’t protect the buyer against damages sustaining from a title defect. So buyers are encouraged to purchase an owner’s title insurance policy to protect their interest.

Title Company

For more than a decade, Ability Title has been helping buyers and sellers with their real estate closing needs. As a full-service title company, we serve residential and commercial clients throughout DeBary, Deltona and Orange City, FL with title searches, 1031 exchanges, escrow accounts, and other title services.

Contact Ability Title Today!

For more information about Title Insurance, or any other real estate closing needs you may have, concerning the DeLand home you are purchasing contact us today at 386-734-5766.