Owner’s Title insurance protects buyers who risk losing their money and property due to problems with the title of a real estate purchase. An owner’s title insurance policy covers the amount of the real estate sales price, only requires a one-time fee at closing, and stays in effect until the buyer sells the property.
The risks can range from invalid and fraudulent real estate sales to hidden legal encumbrances tied to an existing property. Sellers can have missing heirs, former spouses or other parties claiming that the property actually belongs to them.
See what happens here - one conniving neighbor knew that a Florida family went to New Jersey every summer for 4 months. Impersonating the vacationing owner, the neighbor forged the necessary real estate documents and sold the house to unsuspecting buyers. Those buyers were shocked when the real owners returned from New Jersey, losing everything: the house they thought they had purchased as well as the expenses paid for their mortgage loan and title closing costs. If the buyers had purchased an owner’s title insurance policy, they would have been able to recoup their monetary losses from the insuring title company.
And yet another - a seller established a $100,000 equity line of credit against a property that is under contract for sale. The crooked seller then closes the sale of that property 15 days later, which was too soon for the equity line lien to show up in a property title search. A year and a bit later, the new buyer went to re-finance his mortgage and discovered the $100,000 lien against his property with the original seller long gone without paying. The mortgage company started foreclosure proceedings against the property. With owner’s title insurance, the now property owner could simply ask the title insurance company to resolve the problem.
Because title searches and title insurance can be complex, buyers are encouraged to consult a reputable title company that focuses on providing excellent client services. This includes educating the client in the purpose and importance of having an owner’s title insurance policy issued.
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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