Title Insurance. If this is your first home, you may wonder, "Why do I need another insurance policy? It's just one more bill to pay."
The answer is simple: The purchase of a home is likely one of the most expensive and important purchases you will ever make. You, and your mortgage lender, want to make sure that the property is indeed yours, and that no individual or government entity has any right, lien, or claim to your property.
Title companies routinely issue 2 types of policies: Owner's and Lender's. A Lender’s Policy (also called a Loan Policy), financially covers the amount of a loan and provides protection to the lender, but usually does not represent the full property value. An Owner’s Policy allows the landowner to be protected against a title loss and ensures the value of the property.
Before issuing a policy, the title company performs a TITLE SEARCH. This is a detailed and thorough examination of the historical and public records concerning the property in question. The purpose of the search is to verify the Seller’s right to transfer ownership, and to discover any defects or encumbrances on the title. Once a title policy is issued, if for some reason a claim (that is covered under your title policy) is ever filed against your property, the title company will pay the legal fees involved in defense of your rights, as well as any covered loss arising from a valid claim.
Buying a home is a big financial step. With title insurance you are assured that any valid claim against your property will be borne by the title company, and that the odds of a claim being filed are very slim indeed.
We think so!
Coastline Title of Pinellas