Title Insurance is a necessity required by all institutional lenders when applying for financing on a piece of property. Title insurance protects the owners interst and lending companies against defects in the ownership of real property. “Title” is the collective ownership records of a piece of real estate traced back to the first holder; it is a chain that consists of all transfers of real property rights, as well all loans that use the property as collateral. “Title” also is defined as having the right to control and convey a piece of real estate. In Florida, Florida Statute 624.608 defines title insurance as “Insurance of owners of real property or others having an interest in real property or contractual interest derived therefrom, or liens or encumbrances on real property, against loss by encumbrance, or defective titles, or invalidity, or adverse claim to title.”

If the piece of property has clear title (meaning there are no known encumbrances to ownership and control), it is much less susceptible to claims from outside parties claiming ownership or trying to enforce judgments from unpaid debts of previous owners. Obtaining Clear title with a “title insurance” policy that protects you against losses arising from problems with title to the property that were unknown to you when you purchased it is a must in the state of Florida.

There are two types of title insurance policies that protect against adverse claims: (1) Owner’s Policy: protects the owner of the estate up to the full amount paid for the estate if issued at the purchase. If it is issued at any other time other then the purchase, it covers up to the reasonable value of the property at the time of issuance. (2) Mortgagee’s policy- protects the lender aka the “mortgagee” up to the full amount of the mortgage. Therefore, mortgagee policy’s coverage is reduced during the life of the mortgage as the mortgage is paid off.

If you need help getting title insurance or closing on a property… contact use a Florida Real Estate Lawyer to minimize the risks associated with title insurance today. Hiring a real estate lawyer is an absolute necessity if you are buying a bank owned property in Florida. Check out our list of the top real estate lawyers in your area: Florida Real Estate Attorney

What is Title Insurance?
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What is Title Insurance?
Find out why title insurance is so important in Florida.
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National Directory of Lawyers