Imagine this…. You’ve spent months searching for and touring homes and you finally find your dream home. Your realtor helps to negotiate you a great deal and your offer gets accepted. This is a very exciting time for most buyers. Many signatures later the home purchase is finally closed and you’re in the process of furnishing your new home in Naples.
You’re finally getting settled and feeling very comfortable in your new home and a certified letter arrives with some most unwelcome news. The letter states that there is a lien against a previous owner of your new home, and the consequence of that lien is an issue that you will need to address. While this could be an expensive problem, thankfully your real estate professional advised you to purchase Title Insurance for your new home.
What is Title Insurance? Title insurance provides protection against financial loss incurred in connection with the legal title to your real property. Unlike most other forms of insurance, title insurance operates retrospectively to cover things that have previously occurred but were unknown at the time of your home purchase. A contested property title could result in the loss of your time, money or even worse, your home.
Title agents, attorneys and title insurance companies all sell title insurance in Florida. Premiums are based on the purchase price for an Owner’s policy and the loan amount for a Lender’s policy, both of which are promulgated rates set by the Florida Department of Financial services. Unlike other types of insurance coverage, a one-time premium is charged for your title policy and the policy remains in effect for as long as you own the property.
Purchasing Title Insurance is a relatively small, one-time investment that can provide long-term peace of mind. Skipping this coverage is not worth the risk of a title defect arising after your home is purchased and potentially jeopardizing your home ownership.
Thank you to the law office of Wollman,Gehrke & Solomon for some great information on this subject.
Please feel free to visit www.NaplesPropertyPreview.com to start your real estate search or give me a call, text or email, with questions regarding buying or selling a home in Southwest Florida
