Frequently Asked Questions
We have compiled some of our most common questions here for your quick reference, but we would love to speak with you and discuss your specific questions. You can reach us by phone by calling (772) 461-7190 or send us your question using the Contact Form.
Q. Why Do You Need Title Insurance?
A. Title insurance is a means of protecting you and your dependents from financial loss should a problem develop concerning your right to ownership. There may be hidden title defects that a title searcher fails to discover. Crimes involving real estate are growing exponentially. If your property was sold to you under false pretenses or if a defect in the chain of title exists, it is more than likely that you will not learn about these issues until it is too late. Some title defects do not manifest for several years. An Owners Policy can protect you from financial loss, as title insurance pays the cost of defending against any covered claim or indemnify you for any actual loss you sustain up to the face amount of the policy.
Q. What is a Title?
A. A title is the evidence of a person’s right of ownership and possession of the land. Sometimes, someone other than the record owner has a legal right to or an interest in the land. If such a right can be established, this adverse person can make claim to the land.
Q. How can Your Title be Defective?
A. Any number of problems that remain undisclosed after even the most meticulous search of public records can make a title defective. These hidden “defects” are dangerous indeed because you may not learn of them for many months or years. Yet they could force you to spend substantial sums on a legal defense, and still result in the loss of your property.
Q. Who will Require Title Insurance? Lenders Do.
A. A lot of times a buyer will assume that because their lender purchased title insurance the buyer is protected. That’s not the case. There are two types of Title Insurance policies. Your lender will generally require the borrower to purchase a Lender’s Policy. The lender’s Policy insures that the institutional lender has a valid, enforceable lien on the property. This type of policy affords no protection to you as the Owner.
In contrast, an Owner’s Policy is designed to protect you, the owner, from title defects that existed prior to the issue date (effective date) of your policy. Title issues, such as defective probate proceedings, unsatisfied judgments/taxes, or pending legal action, could be lurking in your chain of title. If a valid claim is asserted and the claimant prevails, in addition to indemnifying you up to the face amount of the policy, the Owner’s Title Policy also covers the cost of any legal defense.
Q. How much does Title Insurance cost?
A. Title insurance rates are established by the Florida Department of Insurance. The title insurance industry often refers to the rate set by the Florida Department insurance as the “promulgated rate”. The promulgated rate is the minimum and maximum rate a title agent may charge for insuring real estate.
You pay a one-time premium. The premium is directly related to the value of your home as promulgated. It is a one-time only expense, paid when you purchase your home.
Q. When should I look into purchasing Title Insurance?
A. Call Treasure Coast Title & Escrow as soon as you and the seller sign the earnest money contract. With a brief summary of the details, our team of title experts will begin a search of the public records and issue a title commitment. Because there are a number of steps we must take to make certain that we know all we can about the title, it is wise to get the ball rolling as soon as possible.