Here at Tropical Properties Real Estate, we often get questions from buyers regarding title insurance. Owner’s title insurance protects the buyer’s rights to their property. By searching, clearing and insuring the title to your property before you buy it, an owner’s policy offers protection for your property rights for as long as you and your heirs own your home.
If the ownership of your St. John real estate ever comes into question, an owner’s title insurance policy protects you from expensive legal problems that could result in the loss of your property. Typically, title insurance is paid for as part of the settlement costs by the buyer in a St. John real estate transaction. Purchasing title insurance is especially important when you buy a property on St. John because the land is often owned by families that may or may not have had a clear title. If you don’t purchase title insurance, you could end up paying a lot of money for someone else’s mistake.
As property changes hands, mistakes and irregularities can place your ownership in dispute. The seller may have:
- Avoided disclosure of using the property as collateral for an unpaid loan
- Fraudulently claimed to be the sole owner
- Failed to notify all heirs to the property
- Failed to pay real property taxes
Even a simple mistake in the recording of legal documents, improper execution of legal instruments or the reappearance of undisclosed or missing heirs can result in the loss of your property
The following are some examples of why you need owner’s title insurance:
- Undue influence on a grantor of a deed
- False impersonation by someone purporting to be the owner of the property
- Errors in surveys
- Undisclosed or missing heirs
- Wills not properly probated
- Misinterpretation of wills and trusts
- Mental incompetence of a grantor of a deed
- Transfer of title by a minor
- Incorrect legal descriptions
- Non-delivery of deeds
- Unsatisfied claims not shown on the record
If the ownership of your property is ever challenged, title insurance will defend your possession of the property and assume the legal costs of that defense for as long as you and your heirs own the property. Also, if any challenge to your property’s title proves to be legitimate, title insurance will pay for your losses, just as your title insurance provides. Your Tropical Properties Real Estate Agent can help you find the best title insurance for your St. John real estate purchase.