What Is Title Insurance?
Title insurance is an agreement that reimburses against damages or losses that are a result of a defect in the title. This coverage is part of a title insurance policy attached to a particular parcel or real property.
Upon completing a search of public records and receiving payment for the premium, title insurance companies will take on the risk of the title to a parcel of real property. Title companies play a major role in assuring that the transfer of title takes place successfully and that the policyholder’s welfare is protected as stated by the terms and conditions of the sale.
Establishing which party pays for title insurance varies depending on the situation. In some cases, the buyer will pay, while in others the seller will pay. There are circumstances where the seller will pay for the owner’s title policy, and the buyer will pay for the lender’s policy. This depends on the agreement made between the buyer and the seller, and the customary practice of the local area – which is ultimately documented in the contract for the sale.
What Is Title Insurance And What Role Does A Closing Attorney Play In Obtaining Title Insurance?
If you use my company, we are a client of the Fund, which is underwritten by the title insurance, Old Republic National Title Insurance Company. They are the underwriter and the ones providing the insurance of a clear title.
You’re paying for an insurance policy that is certifying that the title is clear and you are able to convey the property. In the event that the title is not clear, that one-time premium that you pay at the time of the transaction covers you for the entire time you own that property. They’re going to go back and make sure everything fixes it.
So, title insurance is a one-time payment at closing that acts as an insurance policy for as long as you hold the title for your property. For more information on Real Estate Law in Florida, an initial consultation is your next best step.