Owner’s title insurance protects the owner of a property against any mistakes that may have been made during the title search. A title search is a search of all official records on the property. It guarantees that there are no other owners of the property, that the person selling you the property is the legal owner, and that there are no liens or encumbrances on the property.
If issues are found in the title search, then the title company will provide the closing agent with a list of items, called a Commitment, that need to be fixed before they can issue title insurance on the property. This list of issues may include an unpaid mortgage on the property, liens from contractors or other workers who were unpaid, property taxes that were unpaid, and more.
There have been horror stories throughout Florida of fake closing agents and fake title companies that will claim a property is free and clear without even performing a title search.
If the closing agent ignores these items, then they will not be covered by the title insurance, and they will become your debts.
This is why it is so important to choose a reliable, experienced closing agent, preferably a real estate attorney. Here at Boyer Law Firm, our experienced closing agents ensure that every item on the Commitment is fixed and that the title is truly free and clear.