Can I Choose My Preferred Title Company For My Real Estate Transaction?

Yes, and here are a few good reason why you might want to choose what Title Insurance Company you are paying.

Title insurance holds a crucial role in real estate transactions, whether you're buying or selling a property here in Palm Coast and Flagler County, Florida. There's a common misconception that you have no say in selecting the entity that handles this vital aspect. We've connected with one of our esteemed business members, Veterans Title, to provide you with valuable insights so you can make informed decisions when it comes to buying or selling real estate in our community.

In the realm of real estate, having seasoned Real Estate Expert on your side is paramount. Their knowledge of the local market and current trends is unparalleled. They play a pivotal role in helping you secure the best offers and ensuring your objectives are met, whether that means maximizing your financial gains or finding that unique "something" you're seeking in a property.

But it doesn't end there. Choosing the right title company is your second most important decision, and the power of choice lies with you. When it comes to title insurance, it's crucial that the company you select possesses the investigative skills needed to delve into the property's history. This entails a comprehensive search for both obvious and potentially concealed liens on the real estate property.

By making the right choice in your title insurance company, you're safeguarding your investment by ensuring that the property's ownership history is clear of any issues that could jeopardize your rights as a buyer or seller. So, when embarking on your real estate journey in Palm Coast and Flagler County, remember that you have the ability to select the title insurance partner that best aligns with your needs and priorities.

Here's a breakdown of these two types of title insurance:

1. Lender's Title Insurance: When a buyer obtains a mortgage loan to purchase a property, the lender typically requires the buyer to purchase lender's title insurance. This insurance policy protects the lender's interest in the property, ensuring that they have a valid and enforceable lien on the property. The buyer usually pays for this policy as part of their closing costs.

2. Owner's Title Insurance: While lender's title insurance protects the lender, owner's title insurance is designed to protect the buyer. It provides coverage for the buyer's investment in the property, safeguarding against issues like undisclosed liens, unpaid property taxes, forged documents, or other title defects. In many cases, the buyer also pays for owner's title insurance, although it may be negotiated differently depending on local practices and the terms of the purchase agreement.

It's important to note that the specifics of who pays for title insurance can be negotiated as part of the real estate contract. In some Florida locations, it may be customary for the seller to pay for owner's title insurance as a seller concession. However, this can vary widely, and local practices and customs play a significant role.

While it's common for buyers to purchase both lender's and owner's title insurance, the responsibility and cost allocation can be subject to negotiation and local customs. Buyers and sellers should consult with their real estate professionals and review their purchase agreement to determine who is responsible for purchasing title insurance in their specific transaction.

Hidden title insurance liens in Florida, like in many other states, can be challenging to detect but have the potential to cause significant issues for property buyers. Here are some examples of hidden title insurance liens that may not be immediately obvious:

1. Unpaid Property Taxes: Property tax liens can be placed on a property if the owner fails to pay property taxes. These liens are often recorded in the public records, but they may not always be easily identifiable. A thorough title search is necessary to uncover any outstanding property tax liens.

2. Mechanic's Liens: If a contractor or subcontractor was not paid for work done on the property, they may file a mechanic's lien. These liens can be hidden if the property owner did not disclose them, and they may not appear in standard public records searches.

3. Homeowners' Association (HOA) Liens: If a property is part of a homeowners' association, unpaid HOA fees can lead to a lien on the property. These liens may not be apparent without a specific search of the HOA records.

4. Judgment Liens: Liens can arise from court judgments related to unpaid debts or legal disputes. While some judgment liens are recorded in public records, others may not be easily found without an in-depth search.

5. Forged Documents: In rare cases, forged documents related to property ownership can lead to hidden title issues. Forged deeds or fraudulent transfers can cloud the title and create problems for unsuspecting buyers.

6. Missing Heirs or Beneficiaries: When a property is part of an estate, issues related to missing or undisclosed heirs or beneficiaries can arise. These issues may not be evident without a thorough examination of the property's history and legal documents.

7. Easement Disputes: Hidden easement disputes can affect property use and ownership rights. These disputes may not be immediately apparent but can be discovered through a careful review of property records.

8. Solar Panel Loans: Finding liens on a property from solar panel purchases in becoming more relevant in Florida and it's important that this is addressed before closing.

To uncover these hidden title insurance liens and other potential issues, it's essential to conduct a comprehensive title search before purchasing a property. Title companies and real estate professionals often play a crucial role in identifying and resolving these hidden title issues to ensure a clear and marketable title for the buyer. Buyers in Florida should consider purchasing owner's title insurance to protect themselves against any unforeseen title-related problems that may arise after the purchase.

This article is based upon information provided by an experience Title Company and is meant to be informational so you can make the right decision.