What is Title Insurance?

Title Insurance is an indemnity contract between the insured and the insurer (Title Company) which protects against loss or damages sustained by the insured due to the condition of title being other than as insured. The Beneficiaries of title insurance policies are real-estate owners and mortgage lenders unlike other types of insurance which offer protection against future possible occurrences (i.e. Fire, Flood, Disability or Death) title insurance insures against past occurrences which could result in a claim at a future date.

Title Insurance provides the insured "peace of mind" in knowing that they are receiving good and meritable title to the real estate they are purchasing.

What is a Title Search?

A title search is a thorough review or examination of the public records that pertain to real property ownership, and the rights/limitations in its use. The search period will begin with the current owner(s) and extend back in time for a period of 60 years (commonly referred to as the "chain of title") during that search period all documents affecting the subject property are reviewed for accuracy, completeness and proper execution. Similarly, all owners of record during the search period, are indexed to determine their ownership interests, marital status and legal and mental capacity to enter into a contract to sell/buy real property. All conveyances must have been properly conducted and approved by the appropriate governmental departments, i.e. County Recorders Office, Auditors Office, etc.

Once the title search is completed, the results are given to a title examiner (officer) who makes a determination as to the insurability of title.

What Kinds of Problems Can a Title Search Reveal?

A title search can show any number of title defects and liens, as well as other encumbrances and/or restrictions. Among these are unpaid taxes, unsatisfied mortgages, judgments against Buyers/Sellers and any restrictions or conditions limiting the use of the land

Are There Any Problems That a Title Search Cannot Reveal?

Yes. There are some "Hidden Hazards" that even the most diligent title search may not reveal. For instance, a previous owner could have incorrectly stated his marital status resulting in a possible claim by his legal spouse. Other "Hidden Hazards" include Fraud and Forgery, Defective Deeds, Mental Incompetence, confusion due to similar or identical names and clerical errors in the County Records. These defects can arise after you've purchased your home and can jeopardize your right to ownership in part or completely.

Why Does the Buyer Need Title Insurance?

Without an owners title insurance policy, you may not be fully protected against errors in the public records, hidden defects not disclosed by the public records, or mistakes made during the examination of the title of your new property. As a result, you may be held fully accountable for any liens, judgments or claims brought against your new property. However, your owners title policy insures that if such an occasion arises, you will be defended, free of charge against all covered claims and paid up to the amount of the policy to settle valid claims.

Who's Protected by a Title Insurance Policy?

For a one-time premium, an Owner's Policy of Title Insurance is your best protection against countless potential title defects that could deprive you of your ownership rights and the need for you to incur substantial legal expenses if a defect in your title arises. Similarly, a Loan Policy issued to your lender protects its mortgage interest in your property by insuring that its mortgage is a valid and enforceable lien.

Recommended Carrier

First American Title Insurance Co.
(Latin America/Caribbean Operations)
Turalu Brady Murdock
Vice-President/Counsel
13450 W. Sunrise Blvd., Suite 300, Sunrise, FL 33323
Tel: (954) 839-2900, ext. 188; Toll Free: (877) 641-6767
Fax: (954) 838-9228 - This e-mail address is being protected from spam bots, you need JavaScript enabled to view it