SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
05/29/2015
Foundational problems are some of the worst nightmares when it comes to home repairs. When searching for a new home, be sure to give the foundation a good, thorough inspection; you don’t want to buy a house with existing issues. To help, the real estate experts at Schutt Law Firm, P.A. in Fort Myers have made a quick list for what to check in a home’s foundation before you consider making an offer.

Awkward Doors and Windows

When a new house is built, doors and windows will almost always open and close with ease. After the foundation begins to settle, the house will move a little. If there are doors that don’t latch anymore, windows that are hard to open/close, or jammed doors, there is a pretty good chance the foundation is moving

Cracks

Since concrete shrinks just a little bit, some cracks will be natural, so don’t worry if there is some spider webbing or cracks in the mortar or joints. If you see horizontal and/or meandering cracks, that is a bad sign. It typically means the soil in the area will expand and contract due to the moisture. If such cracks are discovered and fixed correctly, it can prevent the need to replace parts of the foundation completely. If the cracks are too far gone, the only solution is replacement; which costs a lot of money.

Moisture

There are bound to be some gaps here and there, but typically they should be small. If the basement has visible moisture build up from the outside, there is probably an issue with the foundation. If the problem is found soon enough, like improving the drainage away from the home for example, it won’t likely become serious in the future; if it is left unattended to, it could mean big construction.

Once you have found the right home, don’t let your hard work and valuable time invested go to waste, protect your investment the best way possible. For professional real estate advice and title insurance in Fort Meyers call 239.540.7007 today and we’ll take care of you.
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