I recently sold a piece of property in the Point Washington, Florida area. The buyer was paying cash and was concerned that there was a clear title, which is the legal right to ownership. When you purchase a property for “cash”, you don’t have to get title insurance in Florida. This smart buyer, however, did want to insure his property. He had attempted to purchase a different parcel of land and through a title search by a professional title company, found there was mortgage that encumbered the property which was unknown to the owner, with no quick resolution to allow him to complete his purchase. For this second attempt at buying a different property, we didn’t think there could possibly be another title problem, but having gone through it once, he was worried. Guess what? There was another title issue found, nine to be precise, with the second property. It was discovered that the property’s deed had the wrong legal description, an error of a now-defunct title company, indicating property boundaries overlapping other properties, some of which were encumbered by mortgages, thus involving the interest of not only other owners, but of their lenders. Thankfully, the seller of the subject property had title insurance, so she filed a claim to have the issues rectified at no charge. To clear these title issues on her own could have cost many thousand dollars and taken hours of research. Since she had a title policy, she was protected and able to finally sell her land.
The bottom line – get title insurance when you buy a property for cash in Florida. It’s worth it.
It’s Wendy… It’s Sold!