SCHUTT LAW FIRM, P.A.
Phone: 239.540.7007
Title Insurance
09/21/2015

Advantages of Buying a Home Later in the Year

Summer is no doubt the high season for residential real estate activity. But if your timing as a potential homebuyer does not coincide with the traditional high season, do not despair-there are still excellent opportunities out there year round. In...
09/14/2015

Understand Adjustable Rate and Fixed Rate Mortgages

While there are other more exotic loan products available, a potential borrower's main decision will come down to choosing between an adjustable or fixed interest rate on their loan.  So what is the difference?  And what are the...
08/31/2015
Downsizing your home is a savvy move, as it will help you reducing your mortgage payment, spending less time cleaning and maintaining your home and many other benefits. If you are currently considering this option, at Schutt Law Firm in Fort Myers we would like to share useful downsizing...
08/14/2015

Picking a Real State Agent

While many buyers choose to buy a property without an agent, this important transaction involves many steps and it's very easy to make a mistake due to lack of experience. However, having an agent can make things easier and help you fulfill your homeownership dream....
08/14/2015

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...
07/31/2015
While becoming a homeowner is a life achievement, it requires careful planning. One of the things that you should pay extra attention is your budget, as it will allow you finding out what kind of property you can afford and avoid debt and other problems. However, there are certain 'extra'...
07/29/2015

How to Expedite Your Mortgage Application

With so much conflicting information circulating about mortgage applications and requirements, the thought of applying can be overwhelming.  In this post, Shutt Law Firm in Fort Myers will share some tips to put you in a better...
07/29/2015
To set an accurate price for a property, it needs to be appraised by a professional. During this process, the person in charge will take into account a few different elements to then come up with a number that represents the property's worth. If you'd like to learn a bit more about what goes into...
06/29/2015
Buying your first home is an exciting time in your life, but you may have heard horror stories about sales gone bad. Buying a home can be a complicated process with a lot of hidden things to consider. Stewart Shutt Law has some ideas to share with you to help make the home buying process...
06/15/2015
It’s no secret that the homebuying process is very demanding and you should look after every detail to prevent any potential problems. However, it’s very easy to relax towards the end of the transaction and neglect the final walk through, which it’s also very important. For this reason at Schutt...
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