What is title insurance?

Whether you are purchasing a property with cash or with a loan, title insurance is necessary for the transfer of property in the United States. Title insurance is obtained through insurance companies and is managed by a law firm specialized in real estate.

Title insurance is purchased once and is in effect for as long as the owner has an interest in the property.

Title insurance on a property is part of the buyer’s closing costs. Title insurance protects the buyer from possible defects or encumbrances in the title, third party claims, inheritance rights, fraud in the transaction, deed errors, lack of authorization of the parties, debts or open permits with the city, etc.

The state of Florida by law provides a minimum charge for title insurance policies, an amount called “the enacted minimum rate.” This rate is $575 per $100,000 of property value less than one million dollars. The rate decreases on a sliding scale for properties valued at more than $1 million.