Orlando Title Insurance
Orlando Title Insurance
Title insurance is one part of the Orlando real estate transaction that is rarely understood. A Orlando title insurance policy protects the buyer (owners policy) and lender (lenders policy) from losses as a result of any title defects that may arise from the past.
Title defects can range from innocent mistakes to blatant fraud. Google “robo signing” to read about some shocking problems that are not uncommon in Florida.
The Orlando title insurance company insures purchasers, against losses, and will pay for the face value of the policy. Insurance coverage is usually the purchase price, plus related legal expenses.
The title policy protects the owner and their personal heirs during ownership, and any claims that may arise after the owner sells the property.
How is Orlando title insurance processed?
The process starts when the Orlando title insurance company performs extensive research of the public records known as a title search. They are looking for defects, claims, or liens against a property. This is not a 100% guaranteed accurate picture of title history on a property. There could be non-recordable items that are not easily discovered or there could be an issue that has not yet surfaced.
Who pays for Orlando Title Insurance?
Title insurance is a negotiable item in the real estate contract and can be paid by either the buyer or seller. In the State of Florida, whomever pays the owners title policy, gets to select the title company to issue the policy. We recommend a buyer pay for owners title policy and select a Title Attorney to scrutinize the title work and issue the title insurance policy from a financially sound and well rated Orlando title insurance company.
An attorney would also be able to make sure you have all the beneficial policy endorsements needed for your protection. If the title attorney also arranges for your title insurance through their title insurer, their cost to represent you on the transaction is nominal.
How much does owners title insurance cost?
Title insurance is issued with a one time premium payment upon closing. The premium is a statutory amount and does not change from title insurance company to title insurance company. You can calculate the rate. If you are financing your real estate purchase, the owners title policy is mandatory. If you are paying cash for the transaction, its optional. However, Orlando Title insurance is a protection you need every time you make a home purchase.
How does a buyer evaluate the Owners Title Policy?
In Florida, Real Estate contracts indicate the deadline for when the owners title commitment to be issued. However, not all title companies send the buyer this information. That is big mistake, because this is the only documentation a buyer receives during the transaction that may indicate problems or exceptions to the title policy.
A title commitment is a preliminary review of the title policy that will be issued upon closing. Title commitments are not easy to read, so it is advisable to have a title attorney review all your closing documents for accuracy. You want to make sure a thorough title search has been completed and that items of concern are addressed. Many title companies simply excluded some protections from your title policy. A good real estate attorney will check your documents and look out for your best interest.
If you are in the market for a Central Florida home, call Buyers Broker of Florida 407-539-1053 for the finest in buyer representation. Their buyer only services are second to none, and they will help make you an educated home buyer, so that you are comfortable in your home selection.