This video explains why title insurance is one of the most important investments a buyer can make when purchasing real estate.
Often, real estate buyers ask—
“Doesn’t the attorney or settlement company handling the closing see to it that I have clear title? Why do I need to buy title insurance?”
Indeed, a careful title search is performed at the time property changes hands, and title issues are cleared prior to closing. However, on occasion, title defects can arise after the closing which a title search would not reveal. For example, what if a judgment was recorded in the wrong county, but still is valid as against the property? What if there was fraud in signing a deed, two sales ago, which only now is revealed? What if an unknown heir steps forward and claims title to the property?
Title insurance is designed to protect against such unanticipated title issues, and to prevent economic loss.
Whether it is after-discovered title defects, or mistakes made by the title abstractor or clerk of court— without title insurance, a property owner could suffer complete financial loss, and loss of ownership and occupancy rights to the property.
On our Resources Page, we have an article on “The Many Ways to Lose Title to Your Property” unless one has purchased a policy of title insurance.
We highly recommend watching this video, and studying the article on our Resources Page.
Title insurance is only purchased once, and the rates are strictly regulated by state law, with the same amount charged by all title companies and title agents and attorneys within the state.
If you have questions about the amount of coverage you should purchase, and the cost of title insurance, please contact us at our Marco Island or Naples Office at First Title & Abstract, Inc.
We look forward to assisting you in protecting title to your property.
