Friday, October 19, 2007

Do I need Title Insurance on my Celebration Florida home?

What I could lose my Celebration Florida Real Estate due to a title issue? Yes it is possible, according to First American Title there are some 70 ways you could lose your property.

So what can you do to protect yourself? Purchase a Title Insurance Policy.

Ok what exactly is Title Insurance?

Title Insurance Coverage ends on the day the policy is issued and extends backward in time for an indefinite period. This is in marked contrast to property or life insurance, which protect against losses resulting from events that occur after the policy is issued, for a specified period into the future.

Title Search Basics:

  • Title searches start with the most recent deed, searching the grantee's name (the person now holding title) backwards in time, until the deed when the grantee acquired the property is located.
  • That grantor's name is then searched backwards in time in the grantee's book to find when the grantor acquired title as a grantee.
  • This process continues, and over time, the property description involves larger and larger parcels of land.
  • Eventually, the searcher finds the U. S. Patent.

Other Factors Affecting Title:

  • Deeds establish chain-of-title, but sometimes those chains are broken.
  • In addition, title searchers also look for proof that the encumbrances are paid off
  • they look for easements, rights-of-way, CC&Rs, other elements affecting title to the property.

Here are more records that are searched to piece title together:

  • Marriage records
  • Death certificates
  • Tax sales
  • Title Insurance Coverage

Depending on the title company, consumers can choose among a variety of options, but the top three choices are Owners, Lender's and Extended Coverage.

Basic Owner's Title Policy Coverage:

  • Clear title to the property
  • Incorrect signatures on documents
  • Forgery, fraud
  • Defective recordation
  • Restrictive covenants
  • Encumbrances or judgments

Basic Lender's Title Policy Coverage:

  • Mechanic's liens and unrecorded liens
  • Unrecorded easements and access rights
  • Defects and other unrecorded documents

Extended Owner's Coverage:

  • Building permit violations from previous owners
  • Subdivision maps
  • Covenant violations from previous owners
  • Living trusts
  • Structure damage from mineral extractions
  • Variety of encroachments and forgeries after title insurance is issued

Facts about Title Insurance:

  • Florida sets title insurance premiums but not other title-related charges, which can vary.
    Who pays for Title Insurance depends on your local custom. It can differ from county to county, but it is also negotiable in the purchase offer. Sometimes sellers and buyers split the fee for the owner's policy.

  • Typically, the buyer pays for the lender's coverage.

  • Title Insurance Policies are paid once. The fee is due when you buy. You will never pay it again. Title policy insurance is the best insurance policy you can ever buy.

Hopefully this information will help you understand the Title process better and why you should have Title Insurance. If you need more information, please feel free to contact me.

This information about Celebration Florida is provided by:

Colleen Kulikowski, Realtor
(407) 288-0017

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