Do You Need Title Insurance in Florida?

    Title insurance must be included in any real estate transaction in Florida, and title insurance protects both the buyer and the seller from a defective title when they purchase Gainesville real estate. It is usually the responsibility of the seller to pay for the title insurance policy, but depending on the county the buyer’s policy may or may not be paid by the seller. Title insurance is important so that the buyer’s investment and equity is protected against future legal claims, and a title company or Gainesville real estate attorney is hired during closing in order to search public records to ensure that the title is not defective.

    After you have selected a home out of the available Gainesville real estate, and negotiated a contract with the help of your real estate agent, you will get to the point of closing, and at this point your seller will pick a title insurance company to handle the title search and exam and closing. The seller is the one responsible for picking the title insurance company, as they are required to make sure that the property is clear from all liens and defects.

    When a buyer purchases Gainesville real estate he or she will need to also purchase title insurance that covers them in the case of a hidden title defect.  A hidden title defect will not come up when the title company does its history search, but the buyer can still be accountable for the lien and face potential legal issues. Owner’s title insurance would cover the buyer if he or she has a legal issue in the future related to a hidden title defect. The insurance would cover the cost of legal fees and other financial losses related to a defective Gainesville real estate title.

    If a person purchases Gainesville real estate, they should be sure that they also purchase an “owner’s” title insurance policy, and not just a lender’s policy. A lender’s policy is usually required by the buyer in order to insurance that the bank has a lien on the property, as a requirement for getting financing for Gainesville real estate. However, the buyer will not be protected unless they purchase an owner’s policy, and an owner’s policy will protect the buyer from any defects that were not found during the search by the title company such as pending legal action or other legal issues that can result in a major financial loss for the buyer’s Gainesville real estate investment.

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