In the state of Florida, the title insurance industry is regulated by the Florida Department of Insurance. This agency is also responsible for regulating insurance rates to ensure that they shall not be excessive, inadequate, or unfairly discriminatory. In general terms, this regulatory authority includes such activities as preparing a title search, examining title, preparing documents necessary to close the transaction, conducting the closing and handling the disbursing of funds related to the closing. Title Insurance affords protection from past events which may or may not be a part of the public records, but that can adversely affect an organization’s interest in the property being sold to them. Title Insurance protects against matters of public records, plus hidden title defects, such as fraud, forgery, incompetence or missing heirs, that even the most diligent title search may not discover. For instance, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse. Other “hidden” hazards include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names and clerical errors in the records. These defects can arise after purchase and can jeopardize right to ownership. Title insurance alleviates the purchaser’s worry that any of these “defects” will become a monetary burden to them.
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