Just suppose you decided to purchase one of those condos in Gainesville Fl. You got the sales contract finalized. Then, right at that point, you’re told that a ‘title’ professional will search public records to look for any problems with the home’s title. What! You begin to sweat, profusely. What if this seller is a poser and has no real connection to any of the Gainesville Fl homes? How can you be absolutely sure there is no problem with the home’s title? What if something was overlooked, and there is a problem; how does it affect you, the buyer?
What is Title Insurance?
That is the reason why you need title insurance, because of all the questions that were asked above. But first, let’s narrow down the definition of title insurance. This operates just like any insurance policy that protects you, and in this case against loss of property should a threat arise or conditions change in your property entitlement. Threats like deed not properly recorded, forgery, undisclosed heirs and more, can be inadvertently missed in a search.
For example, consumers buying condos in Gainesville Fl or homes in Gainesville Fl may find that the previous owners never fully paid the contractors or failed to pay state taxes. If you have Owners Title Policy, it’s no sweat; the title company will cover the claims, the legal defense and protect your equity. Note, this is an option, but a highly recommended one to protect YOU.
Lenders Title Policy
The other important insurance is Lenders Title Policy; this one is not optional, in fact you often can’t get a loan without it. This policy generally protects the bank/lender and works like this: the same consumers purchasing homes in Gainesville Fl or condos in Gainesville Fl are asked to pay $350,000 each and got mortgages for $300,000 plus the lenders policy ( a one-time cost); if there are claims against the properties, consumers are covered in the amount of $300,000; the great news is you won’t owe the lender a cent if you lost your claim in court.