The What, Why and Who of Title Insurance

Nov 18, 2016

Man signing a contract when buying a new houseTitle insurance is an assurance policy that covers legal defects that lead to loss of property during closing proceedings. A title insurance commitment is usually obtained by the buyer right before closing operations take place. The indemnity policy gives consumers the confidence in knowing that they will receive a return on their investment.

A Further Explanation of Title Insurance

A title insurance policy commitment includes the following:

  • The names of the buyer and seller along with the mortgage lender.
  • A legal description of the insured property.
  • Requirements of the closing agents with regard to the terms of title insurance coverage.

A survey should accompany proof of title insurance so that the buyer understands his property rights and restrictions.

What is Title Insurance?

Title insurance ensures that you keep your home through closing proceedings. A policy makes the assurance company responsible for financial loss in the instance of the buyer losing the property before fully settling into his home.

Title insurance is also a listed requirement in most real estate contracts. Lenders typically require evidence of the indemnity when the property is mortgaged. Although cash buyers are not usually required to show proof of title insurance, it is a good idea to invest in such assurance so as to avoid substantial financial loss.

Who Pays For Title Insurance

The burden of a title insurance policy usually falls on the seller. Many counties in the state of Florida require the seller to obtain a policy before his property enters closing proceedings. Some counties in the state, however, leave the burden of purchasing title insurance with the buyer. The question of who pays for title insurance essentially depends on the location of the property for sale.

Beaches Title Services specializes in giving clients the tools needed to ensure a smooth closing. From title insurance to document preparation services, we aim to take the guesswork out of the final step of real estate purchasing. Learn more about our services at our website.