Title Insurance

If you’re buying a home, title insurance is a policy that protects your investment and property rights.

There are two types of title insurance policies: an owner’s policy and a lender’s policy.

1. An owner’s policy protects a property owner from unforeseeable errors and hidden defects for as long as you own the property. Either the buyer or seller can pay for this policy. Seek guidance from your title professional for any unanswered questions.

2. A lender’s policy is required by the lender and protects the lender’s financial interest. The buyer typically pays for this policy, but it can vary depending on the terms of the contract or what is customary by state. Ask your title professional how it is handled in your area.

Unlike other forms of insurance, title insurance emphasizes loss prevention for the insured. Title professionals perform extensive work to identify and address title issues that could impact homeowners or lenders.

A title insurance policy protects the owner of a real estate property against a financial loss they might suffer due to undiscovered defects to the title of the property.

Common defects covered by an Owner’s Policy:

• Forged deeds, releases, and wills

• Lack of competency, capacity, or legal authority of a party to sign

• Deed not executed by a necessary party (co-owner, heir, spouse, corporate officer, or business partner)

• Undisclosed prior mortgages or liens

• Easements or use restrictions

• Erroneous or inadequate legal descriptions

• Lack of a right of access

• Improperly recorded legal documents

An extended coverage policy may be requested to protect against such additional defects as:

• Off-record matters, such as claims for adverse possession or prescriptive easement

• Encroachments on land of another

• Property survey errors

• Silent (unrecorded) liens (such as mechanics or estate tax liens)

• Incorrect Notary acknowledgments

Title insurance rates are regulated by each state.

In the State of Florida, title insurance rates are as follows: $5.75 per thousand dollars of the sales price up to $100,000, and $5.00 per thousand dollars of the sales price from $100,001 to $1,000,000.00.

In the State of Georgia, title insurance rates are filed with the Department of Insurance. Seek guidance from your title professional for any unanswered questions.