Attorney Brett Bevis, is an authorized agent for the purpose of issuing Title Insurance through Attorney’s Title Insurance Fund, Inc., and Old Republic National Title Insurance Company.
What is title insurance?
Title Insurance differs from other more familiar forms of insurance in that unlike other forms of insurance which are forward looking and insure against future events, Title Insurance is backwards looking, and protects against any defects in Title that cannot be discovered through a title search. Some examples include a forged deed in the chain of title, undisclosed heirs due to failure to probate property, or identity theft.
Title Insurance covers the risk of a hidden defect in the title and ensures that one who purchases the property is the rightful owner. If a hidden defect is later discovered one’s Title Company will defend against any claims against one’s property and, if necessary, compensate for any loss.
Do I need title insurance?
There are generally two types of Title Insurance Policies: An Owner’s Policy and a Lender or Mortgagee Policy. The Lender or Mortgagee Policy protects a private lender or bank’s interest in the property. If there is a commercial lender or bank involved in the transaction, the commercial lender or bank will almost always require a Lender or Mortgagee Policy be issued on the property.
An Owner’s Policy protects the buyer’s interest in the property, and insures that you have good title. An Owner’s Policy is optional and not required to be issued when you purchase property, but is usually offered at closing by a seller in Florida. Discounts are available when an Owner’s Policy and a Lender’s Policy are issued at the same time. Therefore, it is recommended that you obtain an Owner’s Policy at the same time to protect your interest.
What does title insurance cost?
Unlike other forms of insurance, title insurance is a one-time premium paid at closing and remains effective as long as you own the property. The price or rate, for title insurance is set by the State of Florida. Agents who issue title insurance are required to apply any discounts that may be available to the purchaser. The Owner’s Policy rate is typically based on the purchase price of the property, and the Lender’s Policy is typically the amount of the loan or mortgage.
Therefore, the price of title insurance should be the same no matter which Title Agent you engage.
Typically in the Central Florida area, the seller of real property pays for the Owner’s Policy, while the buyer pays for the Lender policy. However, this is just a custom, and can be negotiated before signing the contract.
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