Certainly, paying cash for a real estate transaction can speed up the process
Paying cash for your real estate transaction will certainly speed up the process and can eliminate a number of closing costs. As a cash buyer you may have some questions about title insurance. Here are a few common questions to put you at ease.
What is title insurance?
Title insurance protects the property owner’s (and/or the lender’s) interests if problems arise resulting in and error on or loss of that property. For example, a buyer could take title to the home only to be sued by one of the home’s former owners who makes a claim to owning the property. Title insurance covers the expense of defending that homeowner against any covered claims up to the value of the policy issued. It covers against title defects like forged or incorrect recordings of deeds and incorrect property legal descriptions.
What does title insurance cost?
An Owner’s Title Insurance policy costs vary and is a one-time fee paid at closing. Owner’s Title Insurance policies are based on the value of the property being insured. For example, title insurance for a $250,000 property (improved or vacant) in Florida is $1,325.00. The sales price is what sets the value of the property here in Florida. A seller or buyer could be incurring this fee, depending on the county the property is in.
Can title insurance be negotiated?
Having title insurance on a property is a smart decision, even when paying cash for the property. In a real estate transaction, who pays for what closing costs can often be negotiated between buyers and sellers. However, in the State of Florida, title insurance is regulated so there are no negotiations with the title company for a cheaper deal.
How long is the title insurance policy good for?
Title insurance policies provide coverage on the property for as long as the owners and any heirs own that property. The chain must not be broken by a quit claim deed.
Contact Title Junction for your Owner’s Title Insurance Policy
Title Junction is a full service real estate title company serving the area of Fort Myers, Cape Coral and the entire state of Florida since 2005. The company handles a number of real estate title services for both commercial and residential properties.
Have questions? Give us a call at 239.415.6574.
In case you missed it, check out our last Title Junction post: 9 Reasons Why YOU Need Title Insurance