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Unlike in previous generations where people lived in their homes for several decades, in today’s world a property may have gone through several changes in ownership within only a few short years or one decade. This change in ownership has been compounded by the recent recession in which 2 out of every 5 houses has been either foreclosed on or transferred back to the bank in a deed in lieu of foreclosure .

Now more than ever, title insurance is important for a buyer or lender, private or conventional, to have behind them. Ultimately, the purpose of title insurance is to protect and preserve your right to your property, it protects against certain losses associated with problems connected to the title of your property.

Title insurance companies and law firms, like ours, that issue title insurance, investigate the Seller’s title, in a purchase and sale transaction, or the Borrower’s title, in a refinance transaction, in order to identify any title issues and clear them before either the title is transferred or a new loan is negotiated . A title commitment is issued, as of a certain date , to the Buyers and/or the L ender to provide them with a “snap shot” at that date of what the title to the property looks like.

That “snap shot” also includes a 24 – month chain of title which shows any recent transfers in the title to the property. A few days before closing, the title search is updated, which is known as closing the “gap”, to confirm that nothing has changed in the title to the property, such as a sale or a new loan. Without the knowledge and “ snap shot ” of what title looks like, real estate transactions would be very risky. In the tri – county area of Florida, Owner’s Policy of Title Insurance is typically paid for by the Seller. It is part of the Seller’s obligation to provide and deliver good and marketable title to the Buyer.

However, as with all contracts, it is a negotiable term. With that said, the party paying for the Owner’s Policy is usually the one then choosing the title insurance company to close the transaction. Stay tuned for the next two articles: “What does title insurance protect and when?” and “What does title insurance not protect? What you need to ask for in order to be fully protected .

If you would like to know more about Lease Options, please do not hesitate to call me directly at 813-445-7027 or contact me via email.

Barbara Brown