SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
08/14/2018
Open houses may seem a bit dated, but they still offer a great way to get your home noticed by potential buyers. To host a successful open house, check out these tips.


How to Host a Successful Open House

If your home has been on the market for a while, you probably already know how time consuming...
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Right before you get the keys to your new home, you need to make sure everything is in order, which is why you need to do a final walk-through. Here’s what you need to look out for.

The Final Walk Through Before Moving Into Your New Home

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Receiving a counteroffer to your offer on the house is a good thing. You get to negotiate a more suitable deal for both parties. Here are some things you can bargain for.

It’s Time for the Negotiations to Begin

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Selling a house is not easy, even more so if your emotions get in the way. Here are some tips to emotionally detach yourself from your home to make your sale easier.

Don’t Let Your Emotions Can Get in the Way of Your Sale

It’s easier to buy a house (if you have the money) than it is to sell a...
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Ideally, your home should sell within a month after you listed it.  But what if, your home has been listed for months and no one’s taking it? These are some of the possible reasons why.

Why is Your House Still on the Market?

You can’t expect to sell your house from one day to the next, but it...
03/08/2018
Your real estate agent is supposed to help you make your home purchases or sale go faster. But if your agent isn’t giving you the results you expect, maybe you should let them go.

Your Relationship With Your Agent Shouldn’t Be Obligatory

Whether you’re buying a house or selling your home, you...
02/19/2018
Budgeting for a house can be confusing. How much should you save? What should you consider? Here are some tips to help you create a comfortable budget.

The first step in planning for a new home is knowing how much you have and how much you can afford. You’ll probably ask for a mortgage loan,...
01/19/2018

Tips to Help Prepare Your Finances for a Mortgage Lender

Your first meeting with a potential mortgage lender can often be an anxiety inducing event. And reasonably so, given that the person sitting on the other side of the table is going to determine if you can buy your dream home. To help you...
01/19/2018

Get Your Credit Score in Better Shape

There can be nothing worse then being denied for credit, especially when it is for a mortgage to buy your dream home. However, instead of not changing your habits and keeping the credit score, which is holding you back, consider some of the tips below from...
01/19/2018

Fees to Budget for When Applying for a Mortgage

When you were younger and fantasizing about your dream home the last thing that you thought about was needing to apply for a mortgage just to buy it. If you are at the point where you are budgeting to buy a home, below is a post from Schutt Law...
WHY TITLE INSURANCE?
Owning real estate is one of the most precious values of freedom in this country. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home.

Title insurance is issued after a careful examination of the public records. But even the most thorough search cannot absolutely assure that no title faults are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.

Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life, or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults, but does protect you from risks or undiscovered interests. Another difference is that you pay a one-time premium for a policy that remains effective until the property is sold to a new owner - even if that doesn't occur for decades.
What is a Lender's Policy?

A lender's policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale.

This policy only protects the lender's interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner's policy.
What is an owner's policy?

An owner's policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.

What does an owner's policy provide?

- Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.
Why the seller needs to provide title insurance?

Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy that you provide the purchaser is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses and could help you close your deal.
Why the buyer needs title insurance?

Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. If this should occur, your title policy insures that you will be defended at no cost against all covered claims up to the amount of the policy.
How much does title insurance cost?

The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.
What does title insurance protect from?
  • Fraud
  • Adverse possession
  • Rights of divorced parties
  • Deeds by minors
  • Undisclosed Heirs
  • Errors in tax records
  • False affidavits of death or heirshipProbate matters
  • Deeds and wills by persons of unsound mind
  • Conveyances by undisclosed divorced spouses
  • Forfeitures of real property due to criminal acts
  • Deeds by persons falsely representing their marital status
  • Documents executed by a revoked or expired Power of Attorney
  • Defective acknowledgements due to improper or expired notarization
  • Mistakes and omissions resulting in improper abstracting
  • Forged deeds, mortgages, wills, releases and other documents
  • False impersonation of the true land owner