SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
03/24/2015
As a responsible homeowner, you have probably established a budget for decorating and restoring your future property. However, after the home inspection you may come across some unexpected surprises. For this reason at Schutt Law Firm in Fort Myers, we prepared the following post containing some of the most expensive home repairs.

The Roof

If the previous owner neglected to perform basic roof maintenance, it’s possible that this part of the building isn’t protecting the home as it should. A few missing or broken tiles can be easily repaired, however a more extensive damage may require more time and money. Some signs of this problem are holes in the roof and ceiling stains caused by leaks.

Foundation

Water is a serious threat to any home, so make sure to check that the downspouts are directed away from the structure. Look for cracks in the interior and exterior of the property, especially in floor, tiles and moldings. Another sign of moisture problems are doors and windows that won’t open and close properly and uneven floors.

Electrical Wiring

The electrical issues in a home may be difficult to address, as the wiring is in unreachable places and handling it represents a threat when you are not an expert. However, a faulty installation increases the risk or homefire and electrical shock. You should be extra careful when you are visiting older houses and look for flickering lights and charred outlets. 

Having an inspection carried out by a professional is a crucial step during the home buying process, as it will allow you finding out the condition of the house and negotiate with the seller. Unfortunately, many buyers choose to skip this step to make their offer more attractive, which is a common home buying mistake

Remember that protecting your investment is also important to avoid future problems. If  you are looking for title insurance in Fort Myers, at Schutt Law Firm, we will be glad to provide your with everything you need for a successful closing. 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