Why Title Insurance?
What is Title Insurance?
Title insurance applies to the principals of insurance to the risks which are inherent in all real estate transactions. The Title insurance policy is issued after a search of the public records is performed and all relevant documents have been reviewed by the title examiner and all necessary documents have been executed and recorded in the public records.
However, even when the search and exam are performed by experienced title examiners. Substantial defects may not be discovered which could potentially cause losses.
The two types of Title insurance
An owner’s title insurance policy is typically provided by the seller to the buyer and insures the buyer against loss by reason of defect in the seller’s title to the real property.
If the buyer is purchasing the real property with a mortgage from an institutional lender, that lender most likely will require the buyer to purchase a mortgage title insurance policy for the lenders benefit.
When the lender’s policy is purchased at the same time and from the same provider, it is called a simultaneous issue policy. Most lenders will also require endorsements to the standard mortgage coverage which are also paid for by the buyer.
Hidden Risks Covered By Title
*Forged Deeds, releases or wills
*Undisclosed or missing heirs, including spouses
*Deeds executed by persons of unsound minds
*Deeds executed by minors
*Deeds executed under expired or invalid power of attorneys
*Liens for unpaid taxes
*Liens for unpaid estate,
inheritance, income or gift taxes
*Judgments against previous owners
*Deeds by persons supposedly single, but in fact married
*Invalid deed delivered after the death of the grantor
*Improperly probated wills
Title Insurance FAQ
Q: What is title insurance?
A: An insurance policy--protecting against loss should the condition of title to land be other than as insured.
Q: Why do I need title insurance?
A: When you buy a home, or any property for that matter, you expect to enjoy certain benefits from ownership. For example, you expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to cover these rights you bargain for.
Q: What if I have a problem and have to make a claim?
A: At the mere hint of a claim adverse to your title, you should contact your title insurer or the agent who issued your policy. Title insurance includes coverage for legal expenses which may be necessary to investigate, litigate or settle an adverse claim.
Q: What does this cost?
A: The cost varies, depending mainly on the value of your property. The important thing to remember is that you only pay once, and then the coverage continues in effect for as long as you have an interest in the covered property. For specific costs associated with our title insurance products, see our rate calculator or call us at
Q: If my lender gets title insurance for the mortgage, why do I need a separate policy for myself?
A: The lender's policy covers only the Lender and the amount of the loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless the loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest. And, in the event of a claim there is no provision for payment of legal expenses for an uninsured party.
Q: If my title has been examined for defects, why do I need Title Insurance?
A: There are some title defects that cannot be uncovered with even the most thorough search. For example, a search will not uncover that a valid deed was indexed improperly in the land records. Title insurance will protect you from these types of defects.
Q: Do I have to purchase Title Insurance?
A: The vast majority of banks and other mortgage lenders require borrowers to obtain a Lender's Policy of Title Insurance equal to the loan amount.
Q: What is the difference between a Lender's Policy and an Owner's Policy?
A: A lender's policy protects the lender up to the amount of the loan. An owner's policy is purchased in an amount equal to the purchase price and does not expire as long as ownserhsip does not change. . The owner's policy is there to protect the owner's equity in the property.
Q: Who pays for Title Insurance?
A: Often, local custom dictates whether the buyer or seller pays for the premium, but sometimes sellers and buyers negotiate who will pay the premium without regard for local customs and procedures. Be sure to ask your real estate professionals what is predominant in your area.
Q: When do I purchase Title Insurance?
A: While the title insurance policy is issued at closing for a one-time premium, based upon the loan amount and/or purchase price, one should start shopping for title very early in the home buying/selling/refinance process as soon as possible. The preparation that leads to the title insurance policy being issued begins in the very early stages of the closing process. Your OCALA LAND TITLE INSURANCE AGENCY, LTD. Closing Specialist will determine when the best time is to order your title search. Call (352) 369-1751 today to get a free title insurance quote and for more information on when to order title insurance.
OCALA LAND TITLE INSURANCE AGENCY, LTD. offers some of the lowest prices in the area. We encourage you to compare our prices with those of our competitors. To avoid any confusion, let your realtor and lender know that you wish to purchase your title insurance through OCALA LAND TITLE INSURANCE AGENCY, LTD. as early as possible. For your convenience, please click here to contact us for assistance.