SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
04/17/2015
You have found the house of your dreams and you want to put in your offer. The seller will most likely get many offers from other buyers who also think this is their dream house. The competition can be vicious and this is why we at Schutt Law Firm, P.A in Fort Myers, Florida are here to give you some advice and help you get a head start on bidding and negotiations.

How Does Your Credit Stand?

You do not necessarily need to be pre-approved by a lender, however if you have this done before going into negotiations, it gives you the advantage of letting the seller know ahead of time that you are financially stable and that you are a serious bidder.

How Much do You Want to Offer?

Hire a professional inspector to check the condition of the house. This home may LOOK  like the one of your dreams, but having to repair the roof, electrical system, or plumbing could cost much more money than expected. Consider these factors in your offer.

Bidding

Negotiating and bidding on a house is a little different in every state. However, there are general guidelines. You should have your realtor contact the seller’s agent to assure that they are accepting offers. If so, you and your realtor should start planning an offer strategy. Once this is done, it will be sent to the seller to review. This process can happen back and forth several times which coins the phrase, Bidding War.

Title Insurance in Fort Myers

Having a title search done before signing any real estate papers is highly recommended. This will find any existence of claims and encumbrances on the title. It may be in your best interest to walk away from the deal if the seller can not provide a clean title. A title search is usually a loan requirement as well. The professionals at Schutt Law Firm, P.A are here to help you with all your title needs. Call us at (239) 540-7007 for more information.
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