Title insurance is indemnity insurance against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. It is meant to protect an owner’s or a lender's financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.
Do I need Title Insurance?
Title insurance is like any other insurance policy. It is something that you buy hoping that you will never have to use it. Hopefully you will never need it but if you do, and you have not purchased it, the biggest investment you have will be at risk. Unlike other insurances, title insurance is purchased when you purchase real estate or upon refinancing. There is a one time fee for each policy and no payments. Are you really willing to risk the land or home that you have just purchased? If purchasing cash, title insurance is not required for there is no one at stake but you so it is not important to anyone else whether you lose your land or not. However, if you have a mortgage on your property the financial institution or private lender will normally require title insurance.
What is meant by a title defect?
There could be a cloud on title which is an outstanding claim or encumbrance, which, if valid, would affect or impair the title of the owner of a particular estate, and on its face has that effect, but can be shown by extrinsic proof to be invalid or inapplicable to the estate in question. A conveyance, mortgage, judgment, tax-levy, etc., may all, in proper cases, constitute a cloud on title.
Who pays for which expenses at closing?
All expenses are charged as per contract. Remember when you’re writing your contract, everything is negotiable. Once the contract is written we must follow it to the letter unless we receive something in writing that the contract has changed. Any addendums must be in writing.
What does a Title Company do?
Suncoast One Title will order the search and exam.
When the commitment is returned to us we check for defects and if there are special needs to keep the title clear like Power of Attorney’s, or Trust Agreements.
We will then get with the sellers and work at getting any problems cleared up or advise the seller of any special documents that will be needed for this transfer.
We prepare the HUD 1 Settlement Statement with all if the debits and credits and determine the money that the parties will have to bring to closing or will take from closing.
We prepare the documents that will be needed such as the Deed, etc.
We work with the brokers and lenders to make sure that all of the documents are prepared correctly and filed appropriately.
We disburse the funds.
Finally, we prepare the title policy which is sent out after the filed documents have been returned to us by the Clerk of the Court.
We are mainly the collectors of information, getting everything in one place and then distribute documents and funds appropriately.