Title insurance insures that ownership of real property is free of defects, encumbrances, or adverse matters unless listed as exceptions.
The fact that a person has owned property for a long time or a newly constructed home is being sold for the first time is irrelevant. A Volusia county seller may have no idea that a prior transaction was not documented correctly. Therefore, a title defect could result in an objection when trying to sell or refinance the property.
Where to begin
To issue title insurance, the agent searches the public records and determines legal title has passed properly to the current owner of the property, the requirements to issue a new policy, and exceptions, which the agent lists in a title insurance commitment prior to closing, followed by a title insurance policy after closing.
When a title insurance commitment shows a defect, the buyer or lender can object to the title. A Buyer should be represented by an attorney, who can review the exceptions and determine whether they are acceptable. If the seller is unable to cure the objection, the buyer can cancel the transaction.
Who pays for title insurance
Volusia County sellers typically pay for the owner’s title insurance and are frequently referred to title companies for closing. Real estate attorneys also issue title insurance and charge approximately the same rate, so one can be represented by an attorney while complying with the requirement to pay for the title insurance.
If a claim arises on a title policy, the title insurer must resolve it. Title insurers are required to set aside millions of dollars to pay claims that arise.
Common problems resulting in title insurance claims include errors in legal descriptions, probate or foreclosure proceedings, errors in creation of a condominium or subdivision, existence of easements, reservations or restrictions, fraudulent conveyances, unpaid taxes, governmental liens, construction liens, encroachments, and lack of joinder on the deed by a required party.
Title insurance provides peace of mind. Title defects result in significant claims. If a problem ever does arise, it is advantageous to have a title insurer standing behind the title and prepared to resolve the problem.
If you find yourself in need of title insurance you can always look at Pyle & Dellinger, PL as your trusted Volusia County representatives. Please visit our website for further assistance.