There are so many things to think about, plan for, and get done when you are getting ready to buy or sell a piece of property. One thing you might not be thinking about though is getting title insurance. However, this is a very important step that you should be giving careful thought and consideration to. True Title of Florida can help you with a range of title-related issues, including securing title insurance. Here is what you need to know:
Title Insurance for Newly Built Homes
Often times, homeowners think that they actually are the first property owners when they are working on a newly built home. However, even undeveloped land most likely has had at least one prior owner and there can still be issues with the title for that undeveloped property. Even without any structures on it, a piece of property can still have marks and liens against the title that you need to be aware of. A title search will uncover any existing liens and a survey will determine the boundaries of the property you’re purchasing.
Title Insurance for Commercial Property
Commercial title insurance is available to protect business owners. It gives commercial property buyers, lenders, and others greater protection against issues that may lie undetected with the title on a piece of commercial property. Things like bankruptcies, workouts, loan modifications, foreclosures, or other issues, can put your title rights in jeopardy, even after the papers and signed and the title has been transferred. Our team at True Title can help you find the commercial title insurance that is right for your needs.
Title Insurance for Residential Property
Just as business owners need to protect their title investment, residential property owners need the same protection as well. This insurance coverage gives homebuyers and lenders much-needed protection against losses from certain title issues. Title insurance can help protect against the most common marks found against property titles including forgery, fraud, bankruptcy, tax liens, construction liens, as well as problems that might limit a homeowner’s use and enjoyment of the property they just purchased.
Top Ten Most Common Title Issues
Many property owners have likely been told that they need to seriously consider getting title insurance. But maybe you are still wondering if you really need to add this expense to your closing costs. The answer is yes because the initial investment in the one-time cost of title insurance will more than pay for itself when it protects you from losing your claim to your property. Your home may be new to you, but every property has a history. A title search can help uncover title defects tied to your property. Some of these common title issues are:
Errors in public records
Everyone makes mistakes; it is part of being human. However, when those mistakes could threaten your claim to your property that is a big and potentially costly mistake. Clerical or filing errors can impact the deed or survey results of your property – this can lead to undue financial strain and a lot of stress to correct them and reestablish your claim to your title.
Unknown liens
Prior owners who had the property before you bought it might not have been the best at keeping track of payments and debts. And even though the former debt is not your own, when you assume ownership of the property and the title is put into your name, you can be held responsible for paying off those debts. This is a worrisome issue buyers want to avoid.
Illegal deeds
While the chain of ownership and transfers for your property may seem perfectly sound and legitimate, it’s possible that somewhere in the past the deed was owned by an undocumented immigrant, a minor, a person of unsound mind, or one who lied on tax reporting. These issues can make all transfers prior to yours null and void and affect the validity of yours too.
Missing heirs
When a person dies, ownership of their property usually passes to an heir or someone designated in their will. However, those heirs may not be known at the time of death so the property gets sold to someone outside the family. The family may then contest your ownership and claim they have a right to title first. And this can happen long after your purchase.
Forgeries
Unfortunately, the world we live in has dishonest people in it. Sometimes forged or fabricated documents will be filed within public records, making it seem someone has a legal claim to a piece of property, obscuring the rightful owner of the property. Once these forgeries come to light, if someone sold you property they have no real right to, your title may be revoked.
Undiscovered encumbrances
Three can be a crowd when you are working through the process of buying a piece of property. At the time of purchase, there may be an unknown third party who actually holds a claim to all or part of your property. This could be due to former mortgages or liens, or non-financial claims, but they can put your right to purchase that property in jeopardy.
Unknown easements
You may have a free and clean claim to your new home and the land it is on, but an unknown easement may limit your ability to use the property in the way you wish. It could also allow government and city agencies or neighborhood businesses the right to access part of your property. Easements can still affect your use of the property and need to be protected against.
Boundary/survey disputes
If you were smart, you likely looked at several recorded surveys of your property before you signed any papers and finalized the process of purchasing the property. However, other surveys may exist that show differing boundaries. If a neighbor can prove these are more accurate than the one you used they could claim the right to part of your property.
Undiscovered will
When the owner of a piece of property dies and there is no immediately apparent will or heir, the state may sell his or her assets to pay off any debts they may have accumulated. When you purchase such a home, you assume your rights as the owner. Years down the road, however, a missing heir or an unknown will could be discovered that threatens your right to the property.
False impersonation
Common and similar names can lead to a situation where someone may be able to falsely “impersonate” a property owner. If you purchase a home that was once sold by a false owner, you can risk losing your legal claim to the property. This is because the ‘owner’ had to legal claim to the property in the first place and therefore could not legally sell it to you at all.
Protect Yourself With Title Insurance Today
If you or a family member are looking at buying or selling a piece of property and you have title question or are concerned about clouds and other marks on the title, then the best place to turn to for help is True Title of Florida. Getting someone to help you with your title insurance needs and ensure you are protected is easier than you think it is! It is always better to protect your investment ahead of time rather than try to clear up problems down the road, and getting title insurance does just that! If you are looking for Florida title assistance and guidance, we invite you to contact us today and see why we are the name more people trust for all their title insurance needs! Get started today with a free consultation with the True Title team!
