Title Insurance For Challenges To Your Real Estate Title

Knowing the facts about a real estate title and protecting yourself from unforeseen issues that involve ownership of land with title insurance in Cape Coral, Fort Myers, or around Florida will go a long way toward allowing buyers to invest in property. In its most basic form, ownership of land means holding the property title to it and the evidence of that ownership is the physical deed. When buying and selling the property title to land, it is important for the purchaser and lender, if there is one, to protect their interests in the property with title insurance.

Ownership Of A Real Estate Title

Owning the property title on real estate carries with it a traditional bundle of legal rights that are typically transferred from seller to buyer in a real estate transaction. These rights include right of possession, right of control, right of exclusion, right of enjoyment, and right of disposition. While all of this appears logical, it does not mean that a real estate title cannot have defects in the ownership of the property. For this reason, a title search is done on the real estate title before it changes hands in a real estate transaction. Title Junction accomplishes a title search in Cape Coral, Fort Myers and around Florida by creating a chain-of-title on the property. Anyone can perform this duty; however, it is recommended that a professional title company, like Title Junction, be retained because of our expertise in doing title searches.

Establishing the property title begins with the current ownership of the property. The title company will search the owner's name, establish their right to the property title, and then will move backwards in time to the original U.S. patent that established the initial ownership of the property. In addition to logging every real estate title holder on the property, the researcher will also include prior mortgages, wills, easement rights, and liens in the chain-of-title. All of these items can potentially place limitations on an owner's right to use or transfer the property so knowing about them is essential for buyers and lenders.

Title Insurance For Defects In A Real Estate Title

Even though title companies are experts in the field of title searches, unforeseen items such as unrecorded liens or encumbrances could come to light after a real estate transaction has been finalized. These items are known as defects and the best method for protecting you and your lender's financial investment in the property is by having title insurance. In Cape Coral and Fort Myers, Florida, or anywhere else, title insurance protects buyers and lenders from unanticipated issues such as unrecorded liens, judgments, and easements as well as incorrect signatures on documents, forgery, and fraud.

The basic policy will cover the legal fees for defending an owner's rights in court as well as reimbursement for losses sustained from a challenge to the property's ownership. For the lender, title insurance will reimburse the mortgage company if the challenge is upheld in court.