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Home > Blog > Real Estate (Commercial And Residential) > What Is Title Insurance And Do I Need It?

What Is Title Insurance And Do I Need It?


The Florida real estate market has been booming, and nationwide there has been a shift toward a sellers’ market, resulting in steep competition for homes and record-breaking price tags. This has led some buyers to forego inspections and title checks in a bid to seem more attractive to sellers. However, this is a dangerous gamble to make, and many are already paying the consequences. Even in cases where these steps aren’t skipped, the many expenses that come with buying a new home or piece of property may start to seem overwhelming, particularly given the higher-than-expected costs. You may start looking at places to cut corners and wondering what expenses are really necessary. However, title insurance is not the place to cut corners as the relatively low cost of purchasing it far outweighs the risks that come with forgoing it.

What is Title Insurance?

When you buy a home or property in Florida, it’s important to ensure that you are actually purchasing the property without any liens or encumbrances on it that you don’t know about. For instance, you may buy a home with a new pool only to learn that the last owner never actually paid the contractor that installed the pool. You are then responsible for paying that contractor even though you believed you bought the property with all of its debts paid. It’s important to understand that when you buy a home or property, you are also buying all the interests in it. That means that if the previous owners failed to pay property taxes, you have just purchased the home in addition to their outstanding tax debt. For this reason, it is critical to conduct a thorough title search prior to purchase. A quality title search should reveal any liens and encumbrance on the property, including unpaid taxes and debts, judgements against the seller, and restrictions limiting the use of the land. Following the completion of the title search, the home-buyer can also purchase title insurance to protect against anything that the search did not find. This ensures that regardless of what surprises await, the buyer can be confident that they have a marketable title to the property. If this does not end up being the case and a claim is brought against the buyer, the title insurance will cover all court costs and related fees to defend your title. In the event that a legitimate claim is made against your policy, title insurance will reimburse you for your loss, up to the total value of the policy purchased.

Talk to a Real Estate Attorney

It is impossible to predict every possible scenario that could unfold, challenge your title, or arise with regard to your property, however, purchasing title insurance means that regardless of what occurs, your financial investment in the property will be protected. Additionally, the cost of a title search and insurance can often be included in the closing costs for the property. If you are considering purchasing property, contact the Law Offices of Larry E. Bray. West Palm Beach real estate attorney Larry E. Bray will help you navigate the process, protect your interests, and ensure that your investment is protected. Call today to schedule a consultation.

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