Legal Articles

Title Insurance Endorsements

Title insurance is an insurance policy that usually insures the entire value of your property against title defects and encumbrances. As a matter of good practice, title insurance is issued whenever a real estate transaction occurs in Florida. Title insurance is a protection above and beyond the title search done by a real estate attorney before your closing. There are many types of claims that could arise that would not show up under a title search and not getting protection against those claims is a risk a buyer should not take. Examples include problems with deeds, forgeries, and other unrecorded documents that the buyer had no way of knowing about. There are two types of title insurance: the lender’s title insurance policy and the owner’s title insurance policy.

Lender’s title insurance protects the interest of the mortgage lender. This is a requirement by all major lending institutions when you get a loan on the property you are purchasing. The owner’s title insurance protects your investment in your property. This policy will also be important when it comes time to resell your property. The owners policy will be used by the next closing attorney as a starting point for his title search. Remember to give your owners policy to the new closing attorney. The attorney may even be able to give you a discount on the insurance if he has a prior policy from your previous closing.

Posted at April 13, 2013, 8:19 p.m.