One of the biggest investments you’ll likely make is the purchase of a home. Not only does it affect your financial state at the time of purchase, but also your finances for years to come. It’s critical to protect your investment from any future discrepancies like title defects or liens, and that’s where title insurance comes in.

Title insurance, what’s that? 

Title insurance is basically an insurance policy that protects you from issues proposed against your title. Liens, lost files, old relatives claiming rights and forgery are all examples of issues with title. 

For example, if you’ve bought a home and find out that the previous mortgage was never paid off, it’s highly probable that you’ll be held responsible for that previous mortgage. Not obtaining title insurance means that you will have to spend even more money paying legal fees to argue the dispute, even if you had nothing to do with the previous mortgage. What if the legal fees exceed what you were even paying for the home? What if the court system doesn’t play in your favor? 

Lenders often require title insurance so that they are protected if a problem were to arise – If a lender wants a title policy, don’t you think you should too? 

Okay I’m ready to buy title insurance, what are my choices? 

In some locations buyers choose their title company and pay for their title insurance while in others (ex: Fort Myers and Cape Coral) sellers get to make that decision. You are not required to choose any specific title company even if it is referred by a third party. It may be a good idea to collect information (such as fees, title premium, qualifying discounts) from licensed title insurance companies within your area in order to formulate a decent comparison prior to signing a contract.

At Title Junction, we care about helping you stay informed throughout your real estate transaction. The experts at our title company have extensive knowledge about real estate not only in Cape Coral and Fort Myers, but all of Florida as well.

Have questions? Give us a call at 239.415.6574.

In case you missed it, check out our last Title Junction post: How Does My Credit Relate to My Mortgage?

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