When someone is about to conduct a real estate transaction, especially for the first time, they may not even be aware that they have to ensure that the person they are buying the property from actually has the title to the property to sell it on further. This may sound logical to Fort Lauderdale residents — you can only sell the title to something you own the title to. However, one in every three searches through property records reveals a defect that has to be fixed before the real estate transaction closes.
Title insurance then plays an important role in closing real estate transactions. First, it allows one party to search public records to ensure that there are no issues regarding the deed — these issues can range from clerical errors to outright fraud revolving the deed. Basically, the first step is verifying that the person selling the property really owns it.
The second step is to contract with a company that can issue an insurance policy. This policy pays for a buyer to defend himself or herself in court if someone challenges their title. Homeowners may even need two policies — one as an owner and one for the lender.
Once a real estate transaction has been completed, a buyer doesn’t always want to be looking over their shoulder, waiting for a spouse or an undisclosed heir to make a claim to the property. Title insurance, though it may be the last thing on a buyer’s mind, is one way to ensure that this doesn’t happen. An experienced and thorough attorney may be able to explain the process to Fort Lauderdale residents.