Florida Title Insurance Questions
Title insurance helps to protect a property owner or lender against financial loss resulting from defective property rights. If there’s a lawsuit attacking the title, Florida title insurance defends against it and compensates the insured party for any monetary loss up to the amount specified in the policy.
It’s possible that, unbeknownst to you, there are other people who have “rights” to the real estate you own or are considering buying. These may include utility companies, governmental bodies, contractors who worked on the property, and anyone else with a valid unpaid claim.
When a purchaser buys a piece of property, unpaid claims remain attached to it. They affect the value of real estate and the ability of the property owner to use it and dispose of it as he or she sees fit. These are one of the things title searches check for and that title insurance helps protect against.
Defective property rights can be the result of conflicting wills, missing heirs, forgery, fraud, improperly executed deeds, mortgage irregularities, incorrect boundaries, easements, structures that encroach on someone else’s property, old, unrecorded deeds, outstanding personal judgments against the seller that attach to the property, and foreclosure sale issues.
It is these defective property rights that make title insurance in Florida so important.
A title insurance company in Florida handles takes care of every part of the title search and escrow portions of the real estate sale. Florida title companies interact with buyers, sellers, lenders, realtors, insurers, surveyors, and inspectors. They generate the closing documents including loan documents, closing statement (CD1), and others. Their office is generally the site for the final meeting in which documents are signed and notarized.
To provide these functions, a Florida title insurance company performs a tax search, a check for code violations, a check for municipal lens from cities and counties, and many other tasks.
Buyers need title insurance to insure the seller is really selling them a property to which title is free and clear. Otherwise, the buyer risks financial loss and limits on the use of the property. Similarly, lenders financing the sale of a piece of property need title insurance to protect them against financial loss. This is also true when the lender is providing refinancing services with a new title loan.
A title search is the necessary first step in securing title insurance. The title insurance company searches the public record for judgments, easements, unpaid taxes, and mortgage liens against the piece of property under consideration. It is provided by a real estate title company as an added layer of protection for the investment that is about to be made.
A title insurance company can perform such searches efficiently and effectively because it maintains a database of public records called a plant. The information in a plant is updated daily and often goes back more than a century.
If there are no outstanding claims, the Florida title search should establish that the title to the property is free and clear. If the search identifies any problems, a preliminary real estate title report will enable the seller and real estate agent to work together and try to rectify any problems.
Unfortunately, no. The title search can only find problems indicated in public records. It’s unlikely but possible a claim exists that isn’t reflected there. This can be the result of errors in the records, forgery, or confusion over similar names,
Florida title insurance companies call such problems “hidden risks.” They’re claims that go undiscovered until after the sale is completed.
The good news is that a title insurance company protects the property owner against hidden risks. The company will defend the property owner’s title in court and settle the claim if it turns out to be legitimate. Their actions will protect the title and keep the property in the owner’s possession.
That depends on the sales contract. Like any contract, all its terms and conditions are subject to negotiation until the contract is accepted. That includes the determination of who pays for title insurance and the search and services involved.
Sometimes different parties are responsible for the title search and the owner’s title policy- one party pays one while the other party pays the other.
Customary practices can vary from one county to the next, which is why it is so beneficial to have an experienced title insurance provider working with you.
As a general rule, payment for a Florida title search and Florida title insurance are due at the time of the closing for the property.
Yes. Property title insurance is a one-time fee protects the property owner for as long as she or she owns the piece of real estate in question.
The Florida Department of Insurance establishes the rates for Florida title insurance. A Florida tittle owner’s insurance policy and a Florida title insurance mortgage policy are commonly obtained at the same time with the policy of lesser value issued at a nominal rate.
Florida title insurance premium rates depend on the insurance amount with the rate per $1000.00 of insurance decreasing as the total insurance amount rises. At the lowest rate, $100,000.00 or less, the rate is $5.57 per $1000.00. At the highest rate, over $10,000,000, the rate is $2.00 per $1000.00. Our Florida title company can help answer any questions you may have about the process and the costs involved.
If it can be demonstrated that a previous Florida title insurance policy was in effect for the property in question, it may be possible to obtain a reissue credit. The reissue credit exists because the existence of previous property title insurance means there’s less risk for the present insurer, and it can reduce the price of title insurance by as much as 40%.
Are you in the process of refinancing your current home? Do you need help with home title services? If you have any questions or needs, contact our Attorneys to find out how we can help you easily navigate the real estate purchasing/mortgage process and how we can provide you with the peace of mind you deserve. True Title is a company setting a standard of excellence industry-wide. We at True Title have been committed to excellence in customer service since 1998.