Do I Really Need Title Insurance?… YES!

Do I Really Need Title Insurance?… YES!

For someone who does not buy and sell property on a regular basis, title insurance can seem unnecessary.  After all, what’s the worst that can happen, right?

The worst thing that could happen is you are responsible to pay for a property that you won’t own and can’t keep.  This could be both financially and emotionally devastating.          

Why Title InsuranceTitle problems can arise when several parties want to be repaid for loans and liens on the same property.  When you have a lender that made the original mortgage; a different lender who issued a home equity line of credit; taxes to be paid; contractor’s unpaid bills that resulted in a lien on the property; and homeowners’ association all wanting to be repaid from the proceeds of the property, they don’t always agree on who should be paid what, and when they should be paid.

If a title search is not performed and there are issues with the property, when you purchase the house you have purchased the problems, too.  All of the unpaid property taxes and liens stay with the property, not the owner.  So if you purchase a property with issues, unless you get a title search and get them cleared up, you will inherit those same problems.

All lenders require a title search because they want to be sure that all title problems are resolved before they lend you money on the home.  The title search and title insurance isn’t just for your benefit; it’s for the lender as well.  If the lender loans money for a piece of property that already has liens on it, the lender is going to lose money.

In most cases, the seller will pay for title insurance for the buyer.  Lenders also require an additional policy to protect their interest and the borrower (buyer) pays for the lender’s policy.  The lender is covered by the title insurance policy the buyer purchases before closing, but the buyer should also make sure that they have an owner’s title insurance policy to protect them as well.

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. Employees of Title Junction can also act as a witness in courtesy closings as well as an escrow agent or a notary public.

Please contact Jennifer Ferri of Title Junction, LLC for further information @ 239-415-6574 or

Posted on November 8, 2013, in Title and tagged , , , , , , , , . Bookmark the permalink. 1 Comment.

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