New Loan Changes – Not Optional!
Owner’s Title Insurance – Optional??
There are a lot of new changes coming to the real estate industry; especially in new documents and rulings affecting the loan closing process. With the new changes that the CFPB are now implementing as of October 1, 2015, Owner’s Title Insurance is now optional if you are the buyer and paying for it.
That doesn’t mean “don’t get it”, it means, “know what you are buying before you buy it.”
There are two types of Title Insurance when buying a property in Florida.
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Lender’s Title Insurance. REQUIRED
The lenders policy is required by your lender to insure the loan.
It is paid for once at closing, it is not monthly or renewable.
This policy will protect the lenders interest (loan to you) from an issue with the title.
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Owner’s Title Insurance. OPTIONAL (if the buyer is paying)
This covers what the Lender’s policy does not cover – YOU!
It is paid for once at closing, it is not monthly or renewable.
It is good for as long as you or your heirs own the property.
80% of buyers have no idea what it is or why they are buying title insurance.
Because the changes make this an option, do not just shove it off and not buy it learn about it, know what it is and what you are getting and then decide.
A few items to ponder:
1. If your lender is requiring it to protect them, shouldn’t that be a good sign that you should have a policy to protect your interests?
2. When two policies are issued at the same time, (a loan policy and an owner’s policy) the second policy is at a discounted fee.
3. You purchase a homeowners insurance policy, when was the last time you needed that and you renew it every year.
There are definitely some things to think about, the biggest should be, do I know why I need title insurance and what will it do for me?
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public.
Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or www.title-junction.com
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