Owner's Title Policy
Premier Reputation Title Provides Owner’s Title Insurance
SW Florida’s Most Respected Residential and Commercial Title Professionals
Are you getting ready to purchase your dream home?
If you are purchasing a new property, then you most definitely want to consider purchasing an owner's title insurance policy.
Title Insurance: Owner’s Coverage
An owner's title insurance policy is always recommended when purchasing a new home or commercial space. It gives you an extra layer of protection by covering your financial investment in the property just in case there is a flaw in the title search.
Depending on the age of the property, your new purchase could have changed hands quite a bit over the years. So, as a precaution, a title search is done to make sure there are no judgments, liens, encumbrances, outstanding heirs, and the like having an interest in the property. If nothing shows up, the property is deemed free and clear - and it becomes yours at the closing.
Unfortunately, sometimes things get missed. A document or lien may have not been recorded properly or the previous owner may have fraudulently made it look as if the mortgage was paid. On paper it may look like you are the current owner of the property, but when this new information comes to light, your true rights to the property could be in jeopardy.
Fighting the rightful owner in court or dealing with a judgment that is now attached to your property can be costly and aggravating. With an owner's policy, you will have the confidence that your title insurance company will stand by you - both financially and in the courtroom - should any covered title issues surface.
What Can A Title Search Miss?
A title search is a very thorough search that helps protect buyers from any defects in the title. And while this search doesn't usually leave anything out, things can be missed from time to time. Things such as:
Forged documents, such as deeds, releases, and wills
Liens for unpaid taxes
Deed executed using an invalid or expired power of attorney
Undisclosed or missing heirs, estranged spouses
Any of these issues can pose a serious problem for you - the owner - down the road.
Frequently Asked Questions
How long does an owner’s title insurance policy last?
An owner’s title insurance policy will last for the entire time you have an interest in the property. Even if you die and your property is transferred to your heirs, the title insurance policy will still be in effect and will protect the property.
Do I need an owner’s policy if I have a lender’s policy?
It is highly recommended. The lender’s policy and the owner’s policy are quite similar in what they insure, but who they protect is the difference. Should someone attack your ownership of your home, the bank's interest will be protected with a lender’s policy, but your financial interest won’t be - unless you have an owner’s policy.
How much does an owner’s policy cost? Who pays for it?
The cost of your owner's policy will depend on the value of the property you are purchasing. And you - as the new owner - are the one responsible for purchasing the title insurance.
Remember, it may be an additional cost upfront, but the coverage it can provide you should a title defect appear, is worth it.