What is a title insurance policy?

A title insurance policy is a type of insurance that covers the real estate transaction between buyer and seller. It is important to have title insurance to protect both the buyer and seller in the event of a dispute related to the real estate’s title. In Florida, title insurance policies are required for all residential real estate transactions. A title insurance policy covers losses or damages that occur when there is a title issue that affects the buyer or seller. Examples of title issues are: past due taxes, a lien on the property, or an incorrect legal description. A title search is usually completed before closing, to ensure that the seller has a clear title. If a title issue is discovered, the title insurance company will cover any financial losses related to the issue. The Buyer’s title insurance policy also covers any future title issues that may arise after the purchase of the property. This means that even if a title issue is not discovered during the title search, the title insurance company will still provide coverage. Both the buyer and seller should be made aware of the need to purchase title insurance when they enter into a contract to purchase residential real estate in Florida. Without it, the buyer and seller are exposed to major financial losses if a dispute related to the property’s title arises.

Related FAQs

What is a restrictive covenant?
What is a certificate of title?
What is dual agency in a real estate transaction?
What is a disclosure statement for a purchase agreement?
What is a deed of trust with a power of sale?
What constitutes a valid real estate contract?
What is a deed of trust?
What is a lease option?
What is an assignment of rental income?
What is a real estate lawyer's role in a real estate transaction?

What is a title insurance policy?

Related FAQs

Related Blog Posts