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TITLE INSURANCE
In Florida, title insurance is
involved in at least 90 percent of all real
estate transactions. Its purpose is to insure
that the interest of the person who buys, leases,
or accepts land as security for a debt, is as
bargained for. In other words, assurance that
the land is not encumbered by unknown mortgages,
liens or judgments. It ensures that there are
no easements or restrictions that will interfere
with the intended use of the property; and that
the person who claims to own it—actually
does!
What
is Title Insurance?
Title insurance is an exclusively American invention.
Its purpose was well stated in the first advertisement
for title insurance back in the late 1800s:
"This company insures the purchaser’s
of real estate and mortgages against loss from
defective titles, liens, and encumbrances. Through
these facilities [the] transfer of real estate
and real estate securities can be made more
speedily and with greater security than heretobefore."
[circa 1876]
Protecting purchasers against loss is accomplished
by the issuance of a title insurance policy,
which states that if the status of the title
to a parcel of real property is other than as
represented, and if the insured suffers a loss
as a result of title defect, the insurer will
reimburse the insured for that loss and any
related legal expenses, up to the face amount
of the policy.
Title insurance differs significantly from other
forms of insurance. While the functions of most
other forms of insurance is risk assumption
through the pooling of risks for losses arising
out of unforeseen future events (such as death
or accidents), the primary purpose of title
insurance is to eliminate risks and prevent
losses caused by defects in title arising out
of events that have happened in the past. To
achieve this goal, title insurers perform an
extensive search of the public records to determine
whether there are any adverse claims to the
subject real estate. Those claims are either
eliminated prior to the issuance of a title
policy or their existence is excepted from coverage.
Call us today at (772) 569-4364 or fill
out our Online
Request form to let us know how
we can help you with your title insurance needs.
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