What Is Title Insurance and Do I Need It When Buying a Home in Florida?

Although buying a home is one of the biggest American dreams, it can also be one of the most stressful things you will ever do. If you are thinking about purchasing or selling a home in Florida, you have probably heard of “Title Insurance” before. An important investment like buying your home exposes you to the possibility of losing your money or the property due to any missing or damaged property records that were never fully investigated. Hiring an attorney to conduct a full investigation can save you time and protect your legal rights.

There are two types of title insurance: owner’s title insurance and lender’s title insurance. Owner’s insurance protects the buyer of a property, while a lender’s insurance protects the lender. Although owner’s title insurance is not legally required in Florida, it should be one of the priorities of property buyers. The attorney you choose will perform a title search on your behalf which will uncover any encumbrances on the title such as: unpaid mortgages, liens filed by creditors seeking to collect unpaid bills, unpaid property taxes and others. However, some of the hidden title issues cannot be discovered during due diligence title search. For ex. in case of forged deeds and errors of the chain of title in the public records. Accordingly, title insurance policy covers the homeowner in the event of unforeseen issues that came to rise after the closing.  

Unlike your car, health or homeowners’ insurance, a Title Insurance policy is a one-time premium paid at the closing that insures against events and transfers that occurred in the past of the real estate property ownership rights.

So, who pays for this policy in Florida? Depending on the County where the property you intend to purchase is located, determines which party is responsible for paying for the Title Insurance. In Miami- Dade, Broward, Collier County and Sarasota County, the Buyer is responsible for paying for the Title Insurance. In the remaining counties in Florida, the Seller generally pays for the Title Insurance. 

Title Insurance is an important factor when buying or selling a home. When you work with the Law Office of Yana A. Manotas P.A., you’re putting yourself in a position to protect yourself and your investment. Please contact our experienced real estate attorney to have the property fully investigated to ensure that there are no liens, legal claims, invalid or defective title to the property.