SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
07/31/2015
While becoming a homeowner is a life achievement, it requires careful planning. One of the things that you should pay extra attention is your budget, as it will allow you finding out what kind of property you can afford and avoid debt and other problems. However, there are certain 'extra' costs that are relatively easy to neglect. For this reason at Schutt Law Firm in Fort Myers, we created the following post containing some of the most overlooked added expenses of buying a home.

Hidden Costs of Buying a Home

Home Inspection

We can't overstate the importance of the home inspection, as pinpointing any damages in your prospective property can help you choose between dealing with those problems or walk away from the deal. Plus, it's a good way to during the negotiation process and  help you set an estimated price.

Moving Costs

Many buyers seem to underestimate this step and you should take enough time to consider your moving options. Remember that the moving companies are very busy over the summer and you will have to book as soon as possible.

Maintenance & Decorations

As opposed to renting where the landlord took care of the maintenance, you will now have to real with any restorations your home needs. Also, you will have to spend money on furniture, decorations and appliances that will also represent an expense. Forgetting about these costs can lead you to take the wrong decisions and turn your dream of becoming a homeowner into an unpleasant situation. Also, be sure to read our guide on the most common home buying mistakes.

Title Insurance in Fort Myers

Protecting your time and money against scams and title issues is also crucial. If you are looking for title insurance in Fort Myers, you can trust Schutt Law Title.  Call (239) 540-7007 to learn more about our services.
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