Is Purchasing Title Insurance Mandatory?
If you need to borrow the funds, then YES, all lenders require title insurance for the amount equal to the loan. You might ask why and the answer lies in the way financial institutions operate. Mortgage loans in Cape Coral, Fort Myers, or anywhere in Florida are generally made by persons acting in fiduciary capacity, which means that they are or could be lending money that belongs to someone else. To safeguard this investment, the lender asks for title insurance against the loss of security as a result of real estate title problem. Even if you pay cash, you will want to have your investment protected.
Not only does the lender benefit from title insurance, so do the purchaser and seller of the property. The purchaser will gain protection against serious financial loss due to a defect in the property's title. Title insurance protects against claims arising out of title problems that could have been discovered in the public records and non-recorded deficiencies that could not be discovered even with the most complete search. For the seller, a title insurance policy assures that the title is marketable.
There is another benefit to indemnity insurance; while the probability of exercising a right to make a claim is extremely low, anyone can make a claim on the property, whether it is valid or not, and the legal defense provided by the title insurance policy alone will greatly exceed the one-time premium. Title insurance is a win, win situation for all involved parties.
Real estate title insurance can be confusing, but working with a reputable company like Title Junction can help. Whether you're in Cape Coral, Fort Myers, or in the state of Florida, please give us a call and see if we can help.
Not only does the lender benefit from title insurance, so do the purchaser and seller of the property. The purchaser will gain protection against serious financial loss due to a defect in the property's title. Title insurance protects against claims arising out of title problems that could have been discovered in the public records and non-recorded deficiencies that could not be discovered even with the most complete search. For the seller, a title insurance policy assures that the title is marketable.
There is another benefit to indemnity insurance; while the probability of exercising a right to make a claim is extremely low, anyone can make a claim on the property, whether it is valid or not, and the legal defense provided by the title insurance policy alone will greatly exceed the one-time premium. Title insurance is a win, win situation for all involved parties.
Real estate title insurance can be confusing, but working with a reputable company like Title Junction can help. Whether you're in Cape Coral, Fort Myers, or in the state of Florida, please give us a call and see if we can help.
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