WHAT IS TITLE INSURANCE?

There are two types of policies:

An Owner’s Policy protects the buyer against financial loss should a problem arise regarding rightful ownership of their property. Coverage continues as long as the insured has an interest in the property and as long as they may have liability by reason of warranty of title in connection with their subsequent sale of the property.
A Lender’s Policy protects the bank’s mortgage.

WHO PAYS FOR THE TITLE INSURANCE?

Local customs in the county where the property is located vary as to whether the seller or the purchaser pays for the Owners Policy. This is negotiable and should be addressed prior to executing the Contract For Sale/Purchase Agreement.

The buyer (who will be obtaining a Mortgage) pays the premium for the Loan Policy.

WHAT ARE EXAMPLES OF TITLE DEFECTS THAT RESULT IN CLAIMS?

Special assessments, unpaid taxes, incorrect tax information furnished by taxing officials, missing heirs, unsatisfied mortgages, lack of authority of the parties executing documents on behalf of legal entities (such as corporation, partnership, LLC), erroneous legal descriptions, lack of legal access, fraud and forgery.

WHAT HAPPENS IF A CLAIM IS FILED?

If the claim is valid, the policy covers the cost of loss or damages sustained by the insured up to the face amount of the policy. If litigation is based on an alleged defect insured against by the policy the title company is obligated to provide legal defense for the insured.

WHAT ARE THE COSTS FOR TITLE INSURANCE?

Rules of the Department Of Insurance for the State Of Florida regulate title insurance rates within the state. The premiums are based on the sales price and/or the amount of the mortgage. Additional charges may apply for various endorsements when applicable. Please contact your local First International Title branch office to obtain a detailed quote.