SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
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Title Insurance
Common Home Buying Mistakes to Avoid
We can't overstate the complexity of buying a new property and it's relatively easy to overlook certain key details that can lead to an error. For this reason at Schutt Law Firm in Fort Myers we ;created the following post containing some of the home buying mistakes you should avoid.Not Getting Pre-Approved
Finding out whether you are credit worthy is the first step for a successful transaction. This way you will be able to establish your monthly mortgage and know what kind of property you can afford. Remember that the lender will look at your credit history and proof of income to assess your financial situation.Falling in Love with a Property
There's nothing wrong with looking for a home that fulfills your expectations. However, you should look at several properties before taking your decision, otherwise you may fall in love with the first home you visit and rush into the process.Moving Soon
If you are forced to move frequently due to your job or other responsibilities, you should reconsider buying a property. Keep in mind that selling or renting your property when you move can be very difficult and you will end up losing money. Remember that you should plan this transaction carefully to avoid any of these mistakes, so take enough time to assess your personal and financial situation before stepping into the real estate market. Another common mistake is skipping the final walk-through, as this step is very easy to overlook yet it's crucial during the transaction, so be sure to read our guide on this topic.Title Insurance in Fort Myers
Don't forget that having professional assistance is crucial to avoid mistakes during this process. If you are looking for title insurance in Fort Myers, think about Schutt Law Firm, where you will find the expertise your case deserves. 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 heirship
- Probate 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
12601 New Brittany Blvd
Fort Myers, FL 33907
Phone: 239.540.7007
Fax: 239.791.1080
