Q). What is Title Insurance?
A). Title Insurance guarantees the findngs of a preliminary title report, also referred to as a title search. Title companies research these reports using public records, which takes several days to complete and establishes who legally owns the property. The report indicates if the seller is the only person authorized to sell the property, and includes a list of previous owners, as purchase and sale dates. It also lists any liens against the property. The two types title insurance policies, owner's and lender's policies, protects against hidden defects and hidden risks in the title of the property.

Q). What are examples of hidden defects and risks?
A). False impersonations of the true owner of the property, forged deeds, releases or wills, undisclosed or missing heirs, mistakes in the recording of the legal documents, liens for unpaid federal estate taxes or unpaid inheritance taxes, fraud, defective deeds due to incompetence, clerical errors in the land records, improperly probated or undiscovered wills, deeds executed under a defective power of attorney, and/or false affidavits.

Q). What are the two types of title insurance?
A). A LENDER'S POLICY protects the lender against loss due to unknown title defects, and guarantees that the lender has a valid first lien against the property.
An OWNER'S POLICY policy protects the buyer from unpredictable factors, ranging from human error to forged documents, that might emerge after a sale is complete. This type of title insurance has no annual premiums. The buyer pays when the policy is issued. In some states a seller purchases title insurance to guarantee that the buyer is receiving a clear title. In others, the buyer pays for the policy to protect the lender. Only an owner's policy will protect the owner from personal loss, such as legal expenses for a dispute after the sale.

Precise Title, Inc.
201 Sixth Ave.
Indialantic, FL 32903

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