I Need A Great Title Company? Why? Maria Ines de Andrade Weighs In . . .
Many years of knowledge and experience—That’s the reason to choose EWM Title as your closing agent. We have the distinction of being one of Florida’s most reputable title companies, with unmatched skills in providing answers to your questions and resolving your issues quickly and professionally. Most importantly, we have a commitment to unparalleled service in the industry that continues to grow with each transaction.
At EWM Title, we provide the personal touch so often lost in today’s fast-paced world of real estate. You are always welcome to call us. Our friendly and helpful staff would be honored to provide you and/or your clients with an estimate of the cost of title insurance.
What is the purpose of title insurance? Simply stated, the purpose of Title Insurance is to protect the most important investment most people will ever make—their home. Title Insurance plays a major role in making home ownership safe and secure, providing protection against a number of title defects that could jeopardize an individual’s interest in the property they have just purchased. Title insurance protects your property against the past as well as the future. A policyholder is protected against challenges to rightful ownership of real property, challenges that arise from circumstances of past ownerships. Each successive owner brings the possibility of title challenges to the property.
What are the risks of not having title insurance? Risks include an unsatisfied mortgage, liens, judgments, unpaid taxes, and other recorded claims against the property. Mistakes such as incorrect marital status of previous owners, recording errors, improper foreclosure actions, and improper probate proceedings for prior owners are among the causes of title defects.
What does the lender require? The loan policy protects a lender against loss due to unforeseen title defects, but it does not protect the individual purchasing the property. This is a requirement of mortgage lenders. An owner’s policy is the only protection against this type of unforeseen risk.
What information is needed to submit the transaction to EWM title?
The information we need to process a transaction includes:
Names and phone numbers of Realtors®
Contract For Sale and Purchase
Buyer’s and Seller’s full names, addresses, and telephone numbers
Mortgage lender, name of loan officer, and telephone number
Seller’s current mortgage lender and loan number
A copy of the prior title policy (if available)
Homeowners’ Association name and address
Understanding Title Terms
Title is the right of ownership of property. Title gives the owner the right of possession and control of (as in to sell and convey) the property.
Title Search is a document history and detailed report of all transactions recorded in the public records affecting a specific property.
Title Defect is a problem with the title which prevents the title from being marketable. Examples of title defects are prepaid liens, such as tax liens, code enforcement board liens, and judgment liens. Title defects also include a deed or mortgage that was improperly executed; an error in the legal description; an encroachment, easement, or right of way. Title defects must be corrected before good title can be transferred by the Seller.
A Word About Real Estate: Real estate has traditionally been a family’s most valuable asset. It is a form of wealth that is protected by many laws. These laws have been enacted to protect one’s ownership of real estate and the improvements located on the land. The owner, the owner’s family, and the owner’s heirs have rights or claims in and to the property that you are buying. Those who may have an interest in or lien upon the property could be governmental bodies, contractors, lenders, judgment creditors, the Internal Revenue Service, or various other individuals or corporations. The real estate may be sold to you without the knowledge of the party having a right or claim in and to the property. In addition, you may purchase the real estate without having any knowledge of these rights or claims. In either event, these rights or claims remain attached to the title to the property that you are buying until they are extinguished.
The Past Can Determine Your Future: Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future “fender bender” or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance, but can be just as devastating. The following information will answer some commonly asked questions about title insurance.
Will You Get Clear Title? It is of utmost importance that you receive clear title to the property when you purchase real estate. In order to do so, you must first be informed of any existing rights or claims that may, in the future, threaten your title and possession to the property. Title insurance provides you with this twofold protection.
How Do You Find Out What Claims Exist? In order to determine the status of title, EWM Title, through its underwriters, conducts a diligent search of the public records for those documents associated with the property. EWM Title underwriters then examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. These recorded defects, liens and encumbrances are reported to you prior to your purchase of the property. Once reported, these matters can be accepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any recorded defects, liens or encumbrances upon the title that are unreported to you and which are within the coverage of the particular policy issued in the transaction. This is the first benefit you receive from title insurance.
What About Undiscovered Claims? The title to the property that you have purchased could be seriously threatened or lost completely by hazards which are considered “hidden risks.” “Hidden Risks” are those matters, rights or claims that are not shown by the public records and, therefore, are not discoverable by a search and examination of those public records. Matters such as forgery, incompetency or incapacity of the parties, fraudulent impersonation, and unknown errors in the records are examples of “hidden risks” which could provide a basis for a claim after you have purchased the property. In order to protect you against this possibility, EWM Title, through is underwriters, provides insurance coverage for such claims. This is the second benefit you receive from title insurance.
How Does a Title Insurance Policy Protect Against All These Claims? If a claim is made against your insured title, EWM Title’s underwriter protects you by: (1) Defending your title, in court if necessary, at no cost to you, and (2) Bearing the cost of settling the case, if it proves valid, in order to protect your title and maintain your possession of your property.
Title Insurance Protects Your Asset: Title insurance gives you the assurance that possible clouds on title to the property you are purchasing – which can be discovered from the public records – have been called to your attention that such defects can be corrected before you buy. Additionally, it is insurance that if any undiscovered claims covered by your policy arises out of the past to threaten your ownership of real estate, it will be disposed of, or you will be reimbursed exactly as your title insurance policy provides.
Only One Premium: Unlike other forms of insurance, the original premium is your only cost as long as you or your heirs own the property. There are no annual payments to keep your Owner’s Title Insurance Policy in force.
To protect possibly the most important investment you’ll ever make – the investment in your home. With a title insurance policy, you as owner, have an indemnity contract that will reimburse you for loss in the event someone asserts a claim against your property that is covered by the policy.
How can there be a title defect if the title has been searched?: Title insurance is issued after a careful examination of copies of the public records. But even the most thorough search cannot absolutely assure that no title hazards are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search.
What title insurance protects against: Here are just a few of the most common hidden risks that can cause a loss of title or create an encumbrance on title:
False impersonation of the true owner of the property
Forged deed, releases or wills, Instruments executed under invalid or expired power of attorney;
Undisclosed or missing heirs; Mistakes in recording legal documents
Misinterpretations of wills Deeds by persons of unsound mind
Deeds by minorsDeeds by persons supposedly single, but in fact married
Liens for unpaid estate, inheritance, income or gift taxes
What protection does title insurance provide against defects and hidden risks?
Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses. For a one-time premium, an owner’s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.
What this means to you: The peace of mind in knowing that the investment you’ve made in your home is a safe one.
Maria Inês de Andrade - Phone: 305.960.3042
Misty Slater - Phone: 954.306.7228
This article was guest written by Maria Inês de Andrade, General Manager/Senior VP of Columbia Title