When you buy or build commercial or residential property, at some point, title insurance will come up. If you financed the property, it is likely that the lender mandated title insurance. Though, some lenders do not require it, and depending on how you purchased the property, you may not be required to get title insurance. However, even when it is not required, title insurance can help avoid real estate litigation later.
What is title insurance?
Title insurance pulls your Boca Raton, Florida, property records to make sure that no one else has a claim to it, checks your survey for encroachments, and lists everyone that has any interest in the land, minerals or structures. Based on this information, it will then offer insurance for marketable title, insurance for encroachments, environmental issues, etc. The goal is to provide insurance for anything that is related to the sale, land and improvements.
Why is this important?
Bluntly, without a title search and insurance, you could end up buying property from someone who never actually owned the property or from someone who did not have a superior claim. In turn, this could allow someone, an entity or a government agency to take your home. And, your only options would be to sue the person or entity that sold you the property. Unfortunately in this case, by the time you discover the problem, that person is long gone, and that entity may not even exist anymore.
What happens after a claim is filed?
If you receive a letter claiming some right to your property, do not ignore it. File it with your title insurance company. Once received, your title company will handle it from there. They will then negotiate a solution. However, if for some reason, they are not working on a solution or, if you did not get title insurance, you may need to contact an attorney to protect your Florida investment.