How Does Title Insurance Work in Real Estate?
Matters of title can be a problem for homeowners if they are challenged or encroached upon. Title insurance is an insurance policy that homeowners can buy. It protects them against challenges of ownership on your home as well as title defects that existed before you purchased your home.
There are many ways in which title insurance protects a homeowner’s stake in their home, let’s have a closer look at them.
What It Protects You From:
Encroachments – Let’s say a neighbor has a survey done and attempts to build a shed or a deck partially onto your land.
Fraud and Forgery – Should somebody attempt to take your land or property away from you by these means your title insurance will protect you.
Easements or Servitude – Should somebody attempt to build over your property – like a utility line or driveway, you are protected with a title insurance policy.
Zoning non-compliance – If your property is found to not meet municipal or regional by-laws.
There are many more potential situations that a title insurance policy will protect you from.
Essentially, should anything have been missed on the original title search or should somebody file a claim against your title, you are protected.
It is always important to hire an experienced specialist when having a title cleared for sale, however, should something arise regarding your title, it pays to have peace of mind. There are several ways a policy will protect you when a challenge occurs. The actual mechanics of this can take a couple of forms as we will outline below.
How it Works:
A good title insurance policy protects you from financial loss due to any of the above circumstances. Should a person, lender, or government entity file a claim against your title you are empowered to fight it.
Making a title insurance claim with your insurer means that they are obligated to take care of it for you in one way or another. This could mean that they pay the amount that you legally owe through your title, though that is likely not their first choice.
Your insurer will likely attempt to negotiate with the party filing the claim so that you may keep your property without paying the debt of a former owner. In the case of property line disputes where a neighbor has encroached with say a deck or fence, the insurer may hire somebody to remove it. Either way, you won’t have to pay out of pocket to settle the dispute.
Why Choose Rock Solid Law?
If you are in Jacksonville Florida or the surrounding areas, get in touch with a specialized real estate attorney at Rock Solid Law. We are specialized in the unique needs of this special area.
Choose Rock Solid Law and take advantage of our years of experience and specialization. We have been providing our expert guidance to our highly valued clients for over 30 years, and are experts in the areas of business law, real estate, real estate planning, and probate and trust administration.
Real estate tends to be the largest investment in people’s lives. You can trust in the highly experienced and dedicated team of professional real estate attorneys at Rock Solid Law. We will help you make the best possible decisions with your biggest investment using our expertise that you can count on.