What is Title Insurance?
When you are completing a real estate transaction, you are relying on the representation of the seller that they really fully own what they are selling you. If the seller does not fully own the property, you could be facing a large financial loss. Title insurance protects you from this happening.
When you close on a property, you receive title. This is a legal document that says that you own the property. The seller has promised that they own the property in full.
There are a number of things that can go wrong at closing. Even a mistake in the paperwork can come back to haunt you. Some of these issues could include:
- Unpaid tax liens
- Fraudulent impersonation of the owners
- Unreleased mortgages
- Errors in preparing the documents
These are just a small sampling of what could go wrong. Title insurance will pay you back the money that you have lost when something goes wrong in the closing. The title insurance policy is created at the closing, and it covers everything that has happened up to that point (liens, documents, etc.).
The lender would require you to purchase title insurance during the closing process because the lender has a financial interest in your home. You would also generally purchase title insurance to protect yourself because you never know what could happen. Title insurance is a smart investment because it gives you peace of mind after you buy the property, and you are covered if you did not get the full benefit of the bargain.
Contact a Boca Raton Real Estate Attorney
To learn more about how to protect yourself in the real estate transaction process, reach out to a Boca Raton title insurance attorney at the law firm of Rubino Findley. You can call us at 561.220.8464 or send us a message online to schedule an appointment.