Understanding Florida Title Insurance and Its Importance

When you purchase a home, you are really purchasing the title to the property, which gives you the right to own, occupy and use the space. That title may be contested based upon past rights and claims asserted by others. These types of claims can cause you to lose money or even worse, lose your home. A Florida title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes and many other documents. The purpose of the Florida title search is to verify the seller’s right to transfer ownership and discover any claims, defects and other rights or burdens on the property.

These types of marks on the property can include things such as unpaid taxes, overdue mortgages, judgments levied to the seller, any limitations on land usage, holds or liens levied on the property, or any one of many other negative marks. There are some “hidden hazards” that even the most diligent Florida title search may never reveal. The most common hidden hazards involve things like mistakes with paperwork, missing heirs, other family members’ claims to the property, fraud and forgery, defective deeds, clerical mistakes, and other issues often described as ‘human error’ mistakes. These defects may not show up until after you have completed the paperwork and executed and recorded all of the documents necessary to purchase your home and to perfect a mortgage on said home. Many of these marks can jeopardize your right to ownership, but this is where your Florida title insurance company – True Title – can protect and ultimately save you!

At True Title, we specialize in Florida real estate buying and selling, and we have done so for many years. Let us answer all of your questions and help you with your Florida title insurance needs today!

Purpose of the Title

A “title” is defined a bundle of rights in a piece of property in which a party may own either a legal interest or an equitable interest. The rights in the bundle may be separated and held by different parties. “Title” may also refer to a formal document, such as a deed, that serves as evidence of ownership.  When a buyer and seller are working out the terms of the transfer of a property title in Florida, the Florida title insurance company is the primary third party with whom they will be working.  True Title has the experience needed to draft the legal documents that make the title transfer official and binding and can also help assist with all other aspects of the buying and selling of a piece of property in the state of Florida.  True Title’s primary duties and responsibilities generally include:

  • Keeping the earnest money deposit and monitoring the escrow account it is deposited in if needed;
  • Executing a thorough Florida title search and title examination for any negative marks against the property;
  • Working to address and clear up any potential title issues that are discovered in the Florida title search;
  • Overseeing the necessary payoffs, letters, lien search, and legal red tape issues;
  • Preparing all of the necessary documents that are used to clear and transfer title;
  • Coordinating final closings for the title transfer with all involved parties;
  • Overseeing the signing and notarization of important documents for the title transfer;
  • Recording the necessary documents with the proper governmental authority after signing/closing; and
  • Issuing any Florida title insurance policies and finalizing any other aspects that must be handled.

Obviously, the Florida title insurance company has a large part to play when it comes to Florida real estate transactions and the buying and selling of property in the state. Choosing the correct Florida title insurance company can make a tremendous difference in a smooth and successful transfer, as opposed to having struggles and issues every step of the way. You can make the right choice from the start and choose True Title for all of your Florida title insurance needs.

Why You Need Title Insurance

Even the best Florida title insurance experts cannot catch everything, and some marks against a title cannot easily be found during normal Florida title searches. This is why Florida title insurance is so critical and why you must have it in order to protect yourself in the future. Florida’s title insurance premium, which is the amount of money you are paying for the insurance, is based on a set-rate calculation that has been established by the state of Florida. The cost of the property will also figure into the cost of the title insurance; the purchase price impacts the insurance fees as follows:

  • Purchase prices up to $100,000.00: will cost $5.75 per thousand dollars in insurance fees;
  • Purchase prices over $100,000.00: will cost $5.00 per thousand dollars in insurance fees.

Using this rate, a piece of property that is sold for $100,000.00 would have a Florida title insurance fee of $575.00, and a piece of property that sells for $200,000.00 is going to have a $1,075.00 Florida title insurance fee. This may seem like a lot of money to many people, but remember Florida title insurance is in place to help protect you. It is also important to remember that this is not like other insurances, such as health or homeowner’s insurance, where you pay the premium on a monthly basis. Florida title insurance is a one-time fee that is added to the cost of the property in order to secure the insurance coverage for that individual title. It is an important investment into the security of your home’s future and is a move that is well worth the initial cost. We here at True Title can help you protect your property with Florida title insurance so call us today to get started at (877) 785-8792.

Who Pays For Florida Title Insurance?

In Florida, the party that ultimately pays Florida title insurance costs will vary from one county to the next, and it can also be negotiated as part of the process of writing up the official contract. In most counties, the seller generally pays for the Florida title insurance and therefore retains the right to choose the Florida title insurance company. However, the opposite tends to be true in the vast majority of cases for property transfers that take place in the following counties:

  • Sarasota County;
  • Collier County;
  • Miami-Dade County; and
  • Broward County.

Most buyers and sellers really have no preference going into the contract discussions about Florida title insurance companies. The real estate agents working with the involved parties likely have Florida title insurance companies that they are already connected to and with whom they already have a working relationship. In most cases, the real estate agent will recommend a Florida title insurance company to the buyer and seller. What many home buyers do not realize is that their selection of True Title will have an enormous impact on every aspect of their escrow and closing experience! Choosing the correct Florida title insurance company makes it possible to have:

  • Little to no stress throughout your closing experience;
  • Closing on-time with no delays or major issues slowing the process;
  • No remaining title issues to be worried about after the closing is complete;
  • Affordable title insurance and more reasonable closing costs;
  • Peace of mind that the investment you are making is a good one;
  • Reassurance that your home is protected and secured for years to come; and
  • And many more amazing benefits now and down the road.

Contact True Title Today

To learn more about Florida title insurance, why it is important, and how to make sure everything is taken care of before you finalize the sale or purchase of a piece of property in Florida, call True Title. Let us assist you through every step of the process, and let us show you why more and more people trust True Title for their title insurance each and every year!  Call us now at (877) 785-8792.