If you are buying a home or property, your mortgage lender may require you to purchase title insurance. There are two types of title insurance: the policy that protects you personally from losses and title insurance that protects your lender from defects in a title. Even if your lender doesn’t require you to purchase title insurance or you are purchasing a home with cash, you may still want to purchase title insurance to protect yourself and your home.
What is title insurance? Title insurance is an insurance policy that protects you from issues that can effect title to your property. In essence, it is a policy of indemnity issued by a title insurance underwriter or its agent that insures a buyer or lender against monetary loss or damage due to errors in the title as described in the policy and undeterminable facts that affect title such as fraud, forgery, unrecorded documents, unknown heirs, and many other factors. The title to your property is the document that shows who legally owns the property or home. However, a real estate title can have problems if there are heirs to the property that were not disclosed by the seller, if there are unpaid property taxes, or if there are liens from other debts, or claims from former spouses. Errors, fraud, forgeries, and other issues can lead to problems with a title.
Before a real estate sale can occur, title to the property must be clear and unencumbered. This means that the seller must be free to sell the property and the buyer must be free to buy it. A title search is often performed by a lawyer or title company to see if there are any problems with the title. If the title is clean, title insurance can be issued, and the sale can proceed. Title insurance protects you if any problems are found with the title in the future. For example, if an error is revealed later that shows that another person may have a claim to the property, you may be able to seek damages for your losses.
How much does title insurance cost? The Florida Office of Insurance Regulation sets the rates for title insurance. The rates you’ll pay will depend on risk and whether you need an owner’s policy, mortgage lender policy, or both. Title search costs are in addition to these rates. You may be able to quality for a reissue credit, which can lower the cost of title insurance, if you are buying a property that already has a recently-issued title insurance policy. Have questions about title insurance and how a reissue credit could save you money on your title insurance policy? Legal Counsel, PA is a real estate law firm in Orlando, Florida that may be able to help.
Can I Save Money on my Orlando, Florida Title Insurance Policy Through a Reissue Credit?
In certain situations, home buyers may qualify for a reissue credit on their title insurance, which can save them money when purchasing title insurance. Who qualifies for a reissue credit? If either you or the seller already have a title insurance policy on the home, you may qualify for a reissue credit. If the property has not been improved since the policy was issued, or if the original date on the policy is less than three years from the issue date, you may qualify for a reissue credit. If you are in the process of refinancing your mortgage and the policy is issued to your mortgage company, you may also qualify for a reissue credit.
Have questions about how you might be able to save money on your title insurance policy through a reissue credit? Legal Counsel, PA is a real estate law firm that can perform a title search and help you with title insurance. Contact our real estate lawyers today to learn more about our title search and title insurance services.
Some Things to Keep in Mind With Title Insurance
When it comes to title insurance, it is important to remember that the title insurance and title search is designed to protect your interest as a buyer, and a mortgage lender’s title insurance protects the lender. Your mortgage company may recommend that you use a particular title insurance company. But if your mortgage company isn’t requiring you to use a particular company, it is important that you make the right choice when it comes to choosing which title insurance company to use.
Remember that when it comes to title insurance, your interests and your seller’s interests might be divergent. If your seller is asking you to use a particular company, check to see if this is the company that performed the title search for the seller. Using the same title company could produce the same errors and results. You want a thorough title search, and may want fresh eyes looking into records about the property you are purchasing. Legal Counsel, PA is a real estate law firm in Orlando, Florida that performs title searches. Contact our real estate lawyer today to learn more about our title search and title insurance services. We may be able to offer you a reissue credit if you qualify. Have questions? We have answers. Contact Legal Counsel, P.A. today at 407-982-4321.