Title insurance is purchased by buyers when they acquire real estate. It protects the buyer from defects and problems that may have existed with the property before the buyer completed the purchase.
Some of the defects may include, but are not limited to, the following items:
- Title defects
- Liens for unpaid real estate taxes or assessments imposed by a governmental authority
- Any other encroachment, encumbrance, violation, or adverse circumstance affecting the title that would be disclosed in a land survey
- Unmarketable title
- No right of access to and from the land
- Violations of any other law or ordinance
Most states will have title insurance rates set by state statute. For example, Florida title insurance rates are set in Rule 690-186.003 of the Florida Administrative Code.