SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
02/11/2015
 It is is safe to say that it is best to get as much information as you can in order to decide whether to invest your money on a property or not. To that end, there are title searches, disclosure laws, and other researches that will give you a good idea of what the condition of the property is. Still, you don’t risk anything by just asking the seller/owner about some information you should know.

If you’d like to know what kind of questions you should ask an owner before purchasing a property, Schutt Law Firm, P.A. in Fort Myers will give you a few ideas in this post.

Questions to Ask the Seller

Ask About the Property’s History

You should know a little bit of what the property has gone through, from the year it was built, to its owners, its records, and more. By doing so, you’ll be able to learn about any litigations its been involved in, what’s been going on inside it, and more.

Investigate the Reason Why It’s on Sale

An important question to ask is “why is the property on sale?” This will not only provide some insight on the house’s situation, but it can also change its price, or may even help you decide if you should invest on it or not.

Learn About the Selling Process

The amount of time a property has been on sale, the amount of offers it has received, and other similar information, can be game changers in the real estate world. Again, this could lower the property’s price, or may give you an idea of the house’s condition.

Get to Know Its Condition

Speaking of the condition the property is in, it is necessary for you to learn how the house you’re interested in is doing. Ask about restorations they’ve done on it, areas that need fixing, and more. Moreover, make sure to get a home inspection with an inspector you trust.

Inquire About the Problems with the Property

Finally, be blunt and ask the seller/owner what the main problems with the property are. Are the neighbors noisy or annoying? Does the basement flood from time to time? This information could sway your decision, so don’t forget to ask about it.

Call Us for Title Insurance in Fort Myers

If you’re in the closing process to purchase a property, don’t forget about title insurance. We here at Schutt Law Firm, P.A. are experts in title services, so you can rest assured that you’ll get the guidance, information and coverage your case requires. Call 239.540.7007 to learn more about how we can assist 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