What is Title Insurance?
Title insurance is an insurance policy purchased for a one-time premium that indemnifies (protects) the insured, either the purchaser or the lender, against any loss or damage resulting from the title not being as indicated in the policy. Title insurance is issued by a title insurance agent, either a title insurance agency or a law firm, on behalf of a title insurance underwriter. The underwriter is the large company the insured relies upon. Title insurance is highly regulated in Florida and the terms of the policy will likely be the same no matter who issues it.
Title insurance policies may have exceptions to title. Exceptions are those matters not insured. So, it is of critical importance that the buyer know and understand what the exceptions are.
At closing, the title agent will issue a title insurance commitment. This is a contract to issue a title policy. The commitment contains the requirements for the issuance of the policy, for example, the recording of a deed conveying the property to the buyer. The commitment also includes the exceptions.
Title exceptions may include the neighborhood restrictive covenants and the typical utility easements such as an easement to the electric company. Exceptions may include encroachment of improvements onto the property or easements that might impact the way the purchaser intends to use the property. One such example is a conservation easement. If a conservation easement is recorded that pertains to the “rear” 30 feet of the property, no improvements could be built in the easement area. If the buyer had intended to install a pool or a utility building within that area, such would be prohibited and there would be no coverage if the policy contained an exception for this easement.
While all institutional lenders require title policies insuring their mortgage, the purchase of a policy is optional for a buyer, though the buyer would be foolish not to obtain a policy. The lender’s policy does not insure the buyer.
Our promise to you is that no other title company will treat you with our level of customer service. With over 100 years of combined experience, our team is beyond trustworthy! So, what are you waiting for? Contact a Clear Title Representative for your closing needs today!
Clear Title is a real estate closing company founded and owned by a Board-Certified Real Estate Attorney with more than 30 years of experience in the Pensacola area real estate market. Many of its closers and other professional staff members have been handling real estate closings for more than 20 years, and as a result, Clear Title offers well over a century of closing experience. There are three offices in Escambia and Santa Rosa Counties: Pace, Pensacola, and Pine Forest. Clear Title was recently named Best Title Company in Pensacola 2019 by VIP Magazine Pensacola.