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Do I Really Need Title Insurance? How to Avoid the Pitfalls of Clouds on Title

Of all the Ft. Lauderdale real estate attorneys, you would be hard-pressed to find one that would advise clients to forgo the purchase of a title insurance policy in conjunction with a real property transaction. The reason for this is simple: title insurance protects you from claims by others or “clouds” on your title that could result in you losing your land. Moreover, a title insurance policy is a relatively small investment that could reap enormous rewards when facing a legal claim to your property by another person. If you are considering making a Fort Lauderdale real estate purchase, we encourage you to contact us right away to help protect your most important investment.

What is Title Insurance?

Title insurance is a policy purchased by a property owner in order to shift the possible risk of an adverse claim to a piece of land. Said another way, a title insurance policy protects the landowner from having to buy out a claimant with a valid claim against a piece of land already transferred to the current owner. Thanks to the advent of well-kept land records and carefully-drafted deeds, adverse claims are rare. However, these types of claims are not unheard of, and it may entirely possible to face another person holding valid title to your land.

One of the first questions posed to most Ft. Lauderdale real estate attorneys when discussing the importance of title insurance is “How is that possible?” In other words, how is it possible for two people to hold title to the same piece of property? In many cases, this occurs as a result of fraud by the original seller – typically involving multiple deed transfers to unsuspecting buyers within a short period of time. This can also happen by way of forgery or similar misconduct by unscrupulous sellers – or even someone who does not actually hold valid title in the first place.

Problems with title can also occur on very large tracts of land, covering hundreds or thousands of acres. Particularly if land has been held within a single family for generations, issues can occur once descendants finally decide to divide the property into parcels – particularly if there are a number of family members purporting to hold title to the same piece of land.

Contact our Real Estate Attorneys Today

To avoid the hassle and inconvenience of having to litigate ownership of your property, resist the temptation to forgo purchasing a title insurance policy. Title insurance can protect you and your descendants from surprise claims by other titleholders, and is a relatively inexpensive investment in your future.

For more information about Florida real estate law, or to speak with a Fort Lauderdale real estate lawyer about your upcoming transaction, please contact Michael L. Feinstein, P.A. today. You can reach our office by calling (954) 767-9662.