TItle Insurance… mundane?

Title Insurance…. How does one write a blog about something as mundane as title insurance?  Let’s start with a story of how title insurance can help.

You fall in love with a little condo in Naples, Florida.  You make an offer; the seller accepts your contract, and even offers to close within two weeks.  It is your lucky day.  You sign all your papers, wire funds and wait for the title company to call you and tell you that you are now a homeowner in Naples.   Little do you know of the drama transpiring at the title company while you await the call.

At the title company, a nice couple walks in about 20 minutes prior to closing.  The “wife” says she has forgotten her identification, but they need to sign right now because they have a plane to catch.  The title agent is just ready to refuse to notarize the papers, when the phone rings.  On the other end of the line, is the REAL wife.  The REAL wife is looking for her husband and his new girlfriend, afraid that they are trying to sell her condo out from underneath her.  Overhearing the conversation, the husband and girlfriend disappear out the front door.  Legal action was taken against the husband and girlfriend, but what about you? 

Well, the good news is that you did not actually purchase the condo. So although disappointed, you have not entered into the fraudulent purchase.  But if you had, your protection would have been the owner’s title insurance policy purchased at closing. The policy would provide you with representation and financial means to rectify the problem and have recourse against the fraudulent deed.  Without the owner’s title insurance, you would have been left to search out and sue the husband and girlfriend using your own means with very little recourse.

Most transactions are not this “exciting,” but it goes to show the importance of picking a good title company and getting an owner’s policy.  What if the title insurance company you chose, went ahead and notarized the docs without proper identification?  What if the REAL wife had never called? 


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