SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
12/09/2015

Protect Your Investment With Title Insurance in Villas

Buying a home is one of the most exciting times in everybody’s lives, and with all the excitement and emotion it can be easy to forget smaller details or important parts or due diligence that can have a serious negative effect on the future enjoyment and ownership your potential new home For this post, Schutt Law - Title Insurance Agency has some information to share with you about the benefits of title insurance in Villas, the extensive level of coverage and provides, and how easy it is to obtain and keep yourself and our property’s title protected.

Liens

If you haven’t heard what a lien is, then you’re reading the right article. When an application for credit is made, or the title of the property is used as security against a loan or agreement, an official notice is recorded against the title of the property. Below is some information on just a few of the different types of liens that can be placed the title of a property, and how you can protect yourself in the event that one of these should arise.

TAX/IRS Liens

One of the most common of all the liens are those placed by the IRS or other government agencies. When large amounts of tax debt is owed, homeowners may negotiate a payment plan to repay outstanding monies. In these instances, the negotiations usually require an extensive amount of paperwork and substantiation of the ability to repay the debt. If this isn’t able to be provided, the a lien is placed against the title. In the event that the agreed repayments cease to be made against the debt, the IRS can move for an immediate foreclosure of your home. Protecting yourself against these types of liens is simple and easier than you may think. To learn more or if you have any questions about what you have read so far, speak with Schutt Law - Title Insurance Agency on 239.540.7007. Let us use our extensive knowledge in protecting numerous smart home buyers such as yourself to provide you even more information about how we can help you protect your investment.

Creditor's Lien

Do you remember the last time that you applied for a large amount of credit, and one of the options of security was to provide a property title? If a homeowners selects yes during this credit application, then it’s likely a creditor’s lien has been placed against the title. Similar to IRS liens, should payments cease to be made against a financial agreement, then the creditor listed has full legal right to request and complete foreclosure of your home, with the sale price set only to recover owed funds. Whilst you will receive any funds that are remaining, they are not always equal to the full value of your home. Unlike the IRS lien that we spoke about above however, in the event of creditor’s lien, action is usually left until the next organic transfer occurs, at which time any owed funds are recovered prior to you receiving any funds.

Missing Heirs

One of the hardest thing to know about the previous transfer of a home's title are the specific details involved in each transfer and the persons involved. This is where a thorough title search in Villas comes in. In events where a transfer has occurred without notification being sent to all involved parties, then a risk exists for that heir to return and raise claim to their portion of the property or the sale. Not only do these circumstances have the serious potential to void the ownership of your property, the legal fees involved in defending your ownership can be costly. Coverage against situations such as these are best protected by title insurance in target.

Extensive Title Insurance in Villas

With the complexities of transferring a property’s title, these are just some of the many issues that can arise once the sale of a title has completed. More so, protection against these and many other incidents that can affect the ownership of your home is only available prior to the settlement of your future home. Once the papers have been signed, you're on your own. If you are just starting the process of purchasing a home or even if you are about to close, make the smart choice and speak with Schutt Law - Title Insurance Agency on 239.540.7007. With so many more benefits to title insurance in Villas, our trained and experienced title agents are able to answer any questions you may have about title insurance in Villas.
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