SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
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Title Insurance
If you are currently thinking about buying a property, that’s great! This financial move has many advantages over renting, as your property increases its value over the time and overall provides you with a pride and stability. However, you should sit and assess your situation before making a decision. There are many things you should consider and at Schutt Law Firm in Fort Myers, we would like to tell you about some of the most common home buying mistakes. ;
Budget
The first step is getting a financial institution to pre approve you for a loan; this will give you an idea of what kind of property you can afford and stay out of debt. Having a stable income is also important to pay for the monthly mortgage, and don’t forget that your savings should be destined to cover at least 20% of the total value of the property as downpayment. ;
Extra Costs
There are many ‘hidden costs’ that buying a house represents and you should include them your budget; property taxes usually take about 4% of the home value, plus you shouldn’t forget about the home insurance, move, inspection and others. Also, giving maintenance to your home is important - every year you may have to perform a few repairs that you should also be prepared to cover. ;
Home Inspection
Some people may recommend skipping the home inspection to make your offer stand out, which is a big mistake. Some owners may ignore or hide any problems in their property, that you will have to repair and there are certain damages that can be extremely expensive like fixing the roof or foundation. ;
Becoming a homeowner is a dream come true, however you have should always be prepared to handle these and other situations that may occur. Don’t forget that legal assistance is crucial during this process; if you are looking for title insurance in Fort Myers, think about Schutt Law Firm. Our experts will be glad to advise you and protect the effort involved in this transaction. ;
Please call 239-540-7007 to learn more about our services and how can we can help.
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
