Title insurance is a must have on every Real Estate Transaction, and no lender will close a home purchase without a title insurance policy. Title insurance covers the buyer for any title defects, mistakes, omissions or fraud. Title underwriters are rated like car insurance and the policy is only as good as the person writing the inclusions and exclusions.
Unfortunately, Florida has a reputation for having problematic title companies, which can result in big headaches for the home buyer. Some title companies have been remiss in paying off all the liens, failed to transfer the entire property, overlooked collecting for taxes, and did not send the buyer the deed…just to name a few issues that do happen.
Title insurance is a negotiable item between the buyer and seller, and the side that pays, gets to control who does the title work. It is never good to be at the mercy of a title company that has a relationship with the seller or a financial relationship with the listing office. When “controlled affiliate relationships” are in place with the listing office, their title company is not interested in digging deep, finding problems, or rocking the boat for you, the home buyer.
Smart home buyers will pay for and choose their own title attorney/agent who will scrutinize the title work and documents for the home buyer and make sure that all the paperwork is correct.