Florida Home Title Insurance

From time to time problems arise in real estate transactions which affect obtaining clear title for the property being exchanged. The following is a list of some of the items which may appear as obstacles when the title search is conducted:

• 1. Liens - can be placed against a property by any party with an unpaid financial obligation against the property owner. This can be everything from unpaid child support, alimony, taxes, bills from contractors, judgments from creditors that were awarded their judgment thru the court system.
• 2. Errors - it is important to realize that we are all human and mistakes do happen. An error may have occurred during prior ownership to include recording errors, typographical errors, incorrect legal descriptions, incorrect indexing of the land records, incorrect execution or notarization of a document.
• 3. Claims - may come from missing heirs or heirs born after the execution of a will, the dower or curtsey rights of spouses of former owners, ex-spouses, or even from government entities. They can also arise when the mental competence of a Grantor is questioned, wills are not properly probated, when title was transferred by a minor, or when the Grantor of a Deed did so while under undue influence.
• 4. Fraudulent Activity - such as forged signatures or fraud in the execution of documents, the use of false Power of Attorneys, false impersonation of someone claiming to be the owner of the property or any other fraudulent activity can invalidate any title work that occurred from that point on.

Buyers should be sure that all issues that come to light from the title search are adequately resolved prior to closing.

Mary Summers-Title Expert

Lighthouse Title Company

Florida Home Title Insurance

Title Insurance is actually a process, with the insurance policy being the end product. This process starts with a comprehensive search of public records to determine if any liens or other encumbrances are attached to the title to the property. During the search, detailed information from potentially hundreds of sources is gathered and reviewed, including tax records, federal, state and local records, court judgments, deeds and an evaluation of whether the property charateristics are accurately reflected by the information on title. Not surprisingly, one in four title searches uncovers some problem that must be rectified prior to closing.

There are 4 primary categories that can cloud a title and result in significant risk for a prospective homebuyer. The title search meticulously seeks out and evaluates any known indication of any of these issues; however, even the most comprehensive search may not uncover every hidden risk on title to a property.

In my next blog we will cover the 4 categories that can cloud title.

Mary Summers-Title Expert

Lighthouse Title Company

Florida Home Title Insurance