Although some buyers might not think much about it when they are buying a piece of property, most residents of Fort Lauderdale and investors in the Broward County economy probably own a title insurance policy. This insurance is typically purchased at the time someone close on a piece of real estate. Many times, a family must purchase title insurance in order to get a mortgage.
At the time, it may seem like the title insurance policy is just another closing expenses. However, should a real estate dispute emerge, it is important for those who own real estate to realize that the title insurance policy may afford both coverage in the event all or part of the property’s value is lost, and it may also require the insurance company to fund a person’s legal defense.
Specifically, title insurance protects an owner, or lender for that matter, from loss should another person or entity come and claim title over the property that was purchased or some sort of control over the property. By way of example, if a seller’s former spouse were to come forward and assert a legal right to the property that a buyer just purchased, the buyer can ask his or her title insurance company to resolve the issue.
Of course, like any other type of insurance, title policies are complicated legal documents that do not cover every single situation. For instance, a title company will frequently list any known title defects as excluded from coverage.
Still, like real estate attorneys, title insurance companies play an important role in the outcome of a real estate dispute over title.