When purchasing a home, you want to ensure that you’re buying a property with a clear title. However, hidden risks and issues related to the property’s ownership history can sometimes surface after the purchase. That’s where title insurance comes in.
Title insurance is an essential component of residential real estate closings that provides protection and peace of mind to buyers and their lenders. In this post, we’ll explain the importance of title insurance and why it’s crucial if you’re buying a residential property in Florida.
How Title Insurance Protects Homeowner’s Risk
Buying a home is a significant financial investment. Title insurance helps safeguard your investment by protecting against any potential title defects or claims against the property – even those that surface years after you close on the property. Title insurance offers the following three advantages (and many more):
- Financial protection – For a relatively minimal amount paid as a one-time premium, title insurance offers financial protection for legal fees, court costs, and potential financial losses related to these title defects for as long as you or your heirs own the property.
- Peace of mind – Buying a home is a significant decision. Knowing you have title insurance in place can provide the peace of mind you need to confidently proceed with the purchase. Not only does title insurance provide financial protection, but it also reduces your risk of discovering unknown issues with your property’s title.
- A simpler closing process – Lastly, through the process of acquiring title insurance, you’ll have done your due diligence on the purchase. This can help speed up closing and reduce the likelihood of you encountering any of these common issues that often surface during Florida real estate closings.
To learn more about title insurance in South Florida and all the ways it reduces your risk as a homebuyer, please get in touch with our team at the Law Offices of Alex D. Sirulnik, P.A. and ADS Titles Services, Inc.