Frequently Asked Questions
Title
insurance issues
protection against loss if a covered defect is found in your title.
When you buy a home, you are given a title to a property that generally
means you received full
legal ownership. But...sometimes there's a
hidden mistake or error in the deed, will, mortgage, etc. which may give someone
else a valid legal claim against your property.
- Why is
Title Insurance
Important?
Because
it provides a 'Safety
Fence' around your property. Having title insurance should
save you money, time and trouble...it may even save your home!
- The Lender:
When you buy a property with a mortgage, you are commonly
required to buy title insurance to protect your lender. This
covers the outstanding balance on the mortgage for the lender, but does
not protect you.
- The Buyer:
When aquiring property it is a good idea to purchase your
own title insurance policy. It would give you peace of mind
and maximum protection in case their's a claim against your home.
Your policy should be for the full amount you paid for the
property, not just the mortgage amount.
- Errors - incorrect
information in deeds, mortgages, public records, etc. such as wrong
names.
- Liens - claims
against the property or the seller which become the new owner's
responsibility after the sale. Examples are unpaid mortgages,
taxes, sewer and water assesments, unpaid bills to workers,
contractiors or subcontractors, or other creditors, etc.
- Claims to Ownership
- for instance, a claim to 'marital interest' by the spouse of a former
owner or by a child of a former owner who was not mentioned in his or
her parents' wills.
- Invalid Deeds - for
example, transfer by a previous seller who did not actually own the
property, or by a previous owner who was not mentally competent.
- Incorrect Filings -
in the County Clerk's Office.
(Note:
some of these potential problems may not be discovered
in a routine title search)
- What
is the Title Search
& Examination?
The
title search and examination is the first step in obtaining title
insurance. The search is a detailed examination of
the historical records concerning the property including deeds, civil
and probate court records, tax records, etc.
The
purpose of the title search and examination is:
- To
verify the seller's
right to transfer the ownership
- To
discover any claims,
errors, assessments, debts or other burdens or restrictions on the
property.
A
title search is usually carried out by a title insurance company or a
title insurance agency. Based on the results of the title
search, a Commitment
To
Insure (also called a Title Binder) is issued.
The Commitment reflects a summary of the condition of the
title, including title defects, liens, etc. and the requirements which
must be met in order to insure the proposed transaction. When
both the Lender and Buyer are obtaining coverage, they both receive a
copy of the Title Commitment.
Title
insurance rates in Florida are regulated by the Florida Department of
Insurance. Therefore, the difference in rates between companies is
usually minimal. The premium is based on the maximum dollar amount
being issued. Please Contact
Us for an
accurate quote.
Ownership
of the property is transferred. Title insurance is issued and
coverage begins. Legal documents are signed by both the Seller and
Buyer. All monies itemized and disclosed on the HUD-1
Settlement Statement are given to the title agent. The title
agent disburses all monies in accordance with the Settlement Statement.
As required by law, the closing agent charges a separate fee
for conducting and completing the real estate closing.
If
you have a question that
wasn't answered here, please Contact
Us, today!
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