Fourclosure Services

What Foreclosure Buyers Need to Know About Title Insurance?

Buying a residential or commercial property in a foreclosure can be an amazing way to get a great deal, but it can also come with variety of risks especially risks involving the property’s title. 

Buying a Foreclosure? Get a Title Search When Making Your Initial Offer 

If you’re serious about purchasing a foreclosed property, you’ll want to invest in a title search as early as realistically possible ideally, right after making your initial offer on the property. That way, you can determine the scope of title issues involving the property before you’ve committed any more time and money to the transaction. Since the previous owners of foreclosed properties often have had serious financial issues, it’s all the more important to look for:

  • Liens, including bank liens and mechanic’s liens 
  • Deed issues, and third-party owners, such as ex-spouses 
  • Easements and conveyances that have not been properly recorded 
  • Other claims and title issues 


Since many foreclosed properties can sit vacant for months, or even years, on end, adverse possession can be a serious issue. In some cases, individuals have occupied vacant properties for years on end, even paying property taxes on them, in order to continue staying there. In Florida, if an individual occupies a property hostilely (without the owner’s permission), openly (not in a secretive way), and exclusively (not shared with others), for a period of 7 years or more, they may be able to claim legal ownership.  

To learn more about how title insurance, title searches, and escrow services can help protect your property, consult with the experts at Sterling Title Partners for a free consultation. 

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