Title Insurance protects the buyer against claims that may be made in the
future against their property rights. Only one premium is paid - there are
no annual payments - and cover continues as long as the buyer owns the
property.
Florida law requires that real property has a legal description, which is an
exact means of describing real property in a sale contact, deed, mortgage or
other document. The deeds are recorded in the public records of the county.
The Title Insurance Policy protects against defects, liens, or other
encumbrances on the title to the property. In the event of a claim, the
title company will provide for the policyholder’s legal defence and pay any
resulting insured losses.
There are normally two title insurance policies - one for the owner and one
for the lender. Usually, the seller of the property pays for title insurance
to assure the buyer of a clear title. Where there is a mortgage on the
property, the lender usually protects their interest by requiring the buyer
to purchase a lender’s policy. Generally, the seller will have paid for the
buyer’s title insurance, and so the buyer pays only for the lender’s policy.