When you buy property in Florida, whether it’s a home, timberland, a cattle ranch, a large farm or another type of property, it’s important that it has a clear title. Here’s why.
Why is it Important for Land to Have a Clear Title Before You Buy?
The phrase “clear title” means that the current property owner has the legal right to sell it to you, that it’s free from encumbrances (such as liens), and that after the sale is complete, you are the sole owner.
Essentially, land must have a clear title before you purchase it so no one can come forward later and claim that they actually own part of the property.
Related: What is a land contract?
How Do You Find Out Whether Land Has a Clear Title?
You can find out whether land has a clear title by hiring a title search company. Sometimes lenders require you to do so as part of obtaining title insurance (see the following section for more information on that). If you aren’t financing the property, you can still hire A title search company on your own. In fact, it’s probably a good idea; you can talk to your real estate agent if you have questions about why you should make sure the title to the property is clear before you commit to buying it.
Related: Common questions about land loans in North Florida
What About Title Insurance?
If you’re borrowing money to purchase the land, your lender will require you to purchase lender’s title insurance. This type of insurance protects the lender, not you (even though you’re footing the bill for it), if someone comes along and claims ownership to the property later. You may also choose to buy a buyer’s title insurance policy, which will help you if someone challenges your ownership.
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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