What is title insurance - and didn’t I buy that at closing?

Posted by Carey Frankel on Tuesday, April 15th, 2008 at 9:03pm.

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Title insurance is an insurance policy to cover any losses if it turns out the seller of a property you purchased did not have clear title to do the selling.  Yes, indeed you did buy title insurance - but typically only for your lender.  You have to request and purchase a separate policy for yourself as the new homeowner.

Why Didn’t My Lender Tell Me?

It may have been stated in the loan forms that you were to read, but like much of the ‘boiler plate’ terms of a loan contract some of it just washes over the reader.  It is a lot of information to deal with, and often the buyer skims rather than reads in detail.

Shouldn’t My Realtor Have Told Me?

Yes, and no.  Homeowner title insurance is a voluntary item, even if it is a good idea.  It is not a topic which often receives more than a passing mention, amidst other information, and this simply have been missed. 

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How Do I Find More Information?

Ask your realtor, but also do some research on your own.  An informed buyer is a better buyer when dealing with Ponte Vedra real estate.

Title insurance will not recover all your losses if the purchase you made ends up in litigation. However, it is your best option to keep from loosing your entire investment.  Fraudulent sales are more rare now that much of the record keeping can be accessed so quickly.  Many sales that come under a ‘clouded title’ are often simple errors in a record, or assumptions about property and inheritance laws that were not correct.

In any case, for a small amount the purchase of a title policy is a good solid move to protect your investment in Duval County real estate.  Similar to buying a GAP policy for your car insurance to cover that bit of depreciation, the homeowner’s title policy gives you the extra confidence in your purchase.

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