Buying a home in Florida is a major investment. Title insurance is a powerful tool for protecting that investment. It helps protect buyers from hidden risks that can affect property ownership.
One of the biggest risks title insurance guards against is fraud. Florida law recognizes several types of title fraud that can put property ownership in danger.
Forged documents
One of the most common types of fraud involves forged documents. This may include fake deeds, mortgages or releases that someone files in the county records. A criminal might use false signatures to make it look like a legitimate transfer of ownership happened. Title insurance protects against financial loss if forged documents affect the property’s title.
Impersonation of a property owner
Another serious issue involves someone pretending to be the real property owner. This person may sell or mortgage the property without the real owner’s knowledge. Florida has seen cases where thieves use fake IDs to trick buyers or lenders. Title insurance covers claims if an impersonator causes a title defect.
Undisclosed heirs or false heirs
Florida’s property laws give rights to heirs when someone dies without a valid will. Sometimes, an heir might not appear during the sale of a property. Other times, someone may claim to be an heir when they are not. Either situation can cause a legal dispute after the sale. Title insurance helps cover the cost if someone makes a valid claim to the property after closing.
Fraudulent releases of liens
Liens are legal claims against a property for unpaid debts, such as contractor work or taxes. A fraudulent lien release might appear to clear a debt that still exists. If a buyer later finds out that the lien was not properly resolved, title insurance can help address the issue.
Fake powers of attorney
In some cases, a person may use a forged power of attorney to sell or transfer property. This false document gives the appearance of authority when none exists. Title insurance helps protect against losses resulting from such fraudulent acts.
Title insurance gives peace of mind to Florida homebuyers. It helps ensure that ownership remains secure, even when fraud goes undetected until after closing.
