Unlike other insurance Title Insurance is only paid one time. There are no payments year to year or month to month. Title Insurance is paid out of the funds at the closing. Most lenders require that title insurance be obtained as a condition of the mortgage. Like other forms of insurance you pay the insurance company’s agent the premium amount. Guess what? We are agents for First American Title Insurance Company. There is no additional charge for this service. You pay only the premium rate. (See below on how much to purchase.)

Throughout the years, your new property may have changed hands many times through sale, inheritance, foreclosure or bankruptcy. Each transfer was an opportunity for an error in title to arise. If an error occurred, and has never come to light, it puts your title in jeopardy. If you are refinancing your home, your lender will require a new policy. When purchasing a new home Alliant Title and Escrow will conduct a search of public records and related documents. Besides describing your property and spelling out any recorded limitations on your ownership, a title insurance policy sets forth in clear terms what First American Title Insurance Company will do in the event that a flaw in the title is discovered or your rights of ownership are challenged. In simple terms, the Insurer agrees:

1. To defend your title in the courts, as insured, at its own expense.
2. To correct or clear the title when possible.
3. To promptly pay you for your loss in the event of an unsuccessful defense of your title.

The purchase price of the house will determine the amount of insurance you buy. You don’t have to worry about buying too much or too little. The rate you pay is determined by the price of the home. The premium rate is established by the State of Florida.

Lender’s Policy – If you’ve ever mortgaged a home, chances are you were required to purchase a title insurance policy. This lender’s policy (often called a loan policy) is required by most lending institutions as a way to insure their security interest in the property. This policy protects the bank or other lending institution for as long as they maintain an interest in the property (typically until your mortgage is paid off). If you’re considering refinancing your mortgage, you may be surprised to see that you are required to purchase a new lender’s policy of title insurance. This is because a lender’s policy only provides coverage for the life of a loan. When a home is refinanced, the life of one loan ends and another begins. Thus, a new lender’s policy for title is required. Because an owner’s policy provides coverage for as long as you or your heirs hold an interest in the property, there is no need to purchase a new owner’s policy when refinancing.

Owners Policy – As a buyer, you also want to protect your investment – and the ownership rights that come with it. This is why it’s wise to purchase an owner’s policy of title insurance, which will protect your rights as the homeowner for as long as you or your heirs have an interest in the property.

Who Pays for It? – There are various customs regarding the purchase of title insurance. In some areas of the country, it is customary for the seller to purchase the owner’s policy for the buyer, whereas in other areas the owner’s policy may be entirely optional.

Although the property you just purchased is new to you, it has a history, and sometimes, these histories can include unwanted baggage. During a real estate transaction’s closing process, a title search on the property is completed to determine whether there are title defects that can have an effect on the purchase.

One common title issue buyers face when completing a title search is an error in public records. Humans aren’t error-free, and a clerical or filing error regarding your property can have an effect on the deed and result in costs you may not have expected.

An example of an error that could be filed in public records is a description of the property that may appear to be accurate but isn’t, like the square footage of the home. Since banks and lenders will only offer about 80 to 90 percent of a home’s appraised value, if the home’s actual square footage is different than what is listed on the documents, buyers may run into an issue with receiving the needed loan amount. As a result, buyers may be unable to obtain the loan and therefore unable to purchase the property.

Improperly filed legal documents, pending legal action or unreleased mortgages mishandled by public records can result in additional headaches for the buyers unless these issues are resolved.

Completely avoiding errors in public records is nearly impossible because buyers have no control over a property’s past or a mistake that could have been made by those filing and recording these documents. However, an owner’s policy of title insurance will help protect your ownership rights from errors and defects found in public records. This insurance may cover both the legal costs to defend your interests as well as certain losses sustained as a result of a covered title defect.