FAQs

Title is the foundation of property ownership. It is evidence of the owner’s right to possess and use the property.

Title Insurance protects you (whether Owner or Lender) against losses due to pre-existing defects in the title to the property and expenses in legal defense.

Your ownership is authenticated and will be promptly defended against any claims in court, if necessary, at no cost to you, whether a claim is valid or not.

If a valid claim is made against your title as covered by your policy, the title insurer protects you by bearing the cost of settling the claim should it prove valid, in order to protect your title and keep you in possession of your property or mortgage.

There are two different types of Title Insurance: Owner’s Policy and Lender’s Policy.

Owner Title Insurance: An Owner’s Policy protects your property rights for as long as you own the home.

Lender Title Insurance: A Lender’s Policy is usually required by the lender and protects only the lender’s financial interests. The buyer typically pays for this policy, but this varies depending on geography. This separate policy protects the lender’s interest in the property against any loss due to unknown title defects up to the outstanding balance of the buyer’s mortgage.

A 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 search is to verify the seller’s right to transfer ownership, and to discover any defects, claims and other rights or encumbrances on the property.

A Title Defect is an outstanding legal claim, complication, error, omission or irregularity related to a property that threatens or impairs an individual or entity’s full ownership rights, which can delay or prevent that individual or entity’s ability to purchase, sell or convey the property.

When a seller is transferring ownership of property to another person, the seller needs to ensure that the buyer is getting the property free of encumbrances and liens. The buyer expects to receive clear title to the property he or she is purchasing.

A title search will reveal problems that the buyer will need to be made aware of, including, but not limited to:

• Public Records Errors
• Unsatisfied Mortgages
• Judgments & Liens (i.e. Mechanic’s Liens)
• Fraud & Forgery
• Conflicting Wills
• Missing Heirs
• Property Boundary & Survey Disputes
• Estate Issues & Breaks in the Chain of Title
• Legal Description, Easement, Encroachment, Setback Issues
• Rights of Third Parties
• Bankruptcy
• Divorce Decrees

The cost of title insurance in Florida varies between counties based on the purchase price of the property. Unlike other insurance premiums, which must be paid annually, a title insurance premium is paid one time only at settlement.

Florida’s title insurance premium is based on a Promulgated Rate Calculation, which is determined by the State of Florida. But, generally speaking, your title insurance premium cost is a little less than one percent (1%) of the purchase price of the property and less than ten percent of your total closing costs.

The Florida Department of Insurance regulates the rates that title insurers can charge consumers.

The Florida Promulgated Rates for an owner’s title insurance policy are as follows:

• $5.75 per $1,000 of value for the first $100,000.00.
• $5.00 per $1,000 of value thereafter for purchase prices up to $1,000,000.00.

Please contact us for rates for owners or loan policies above $1,000,000.00.

Owner’s policies are issued to buyers of real estate when they have the title to the property conveyed to them by a deed.

A Homeowner’s Policy is the default policy specified by the multiple listing service, and provides additional risk protection beyond that afforded by a Standard Coverage Owner’s Policy. The premium is 10% higher than that for a Standard Coverage Owner’s Policy.

In addition to Standard Coverage and Homeowner’s Policies, an Owner’s Extended Coverage Policy is available to cover losses such as questions of survey, such as lot size, location of boundaries and easements, unrecorded liens for labor or materials, parties in possession of the property not disclosed by public records and breach of covenants, conditions and restrictions.  There’s an additional premium of 30% above a Standard Coverage Owner’s Policy for an extended coverage policy to cover the additional risks. A survey, commonly called an “ALTA survey,” may be required to issue an Owner’s Extended Coverage Policy.

A lender’s policy is issued to the lender to protect their interest in the property secured by a deed of trust or a mortgage. Most lenders usually require a Lender’s Extended Coverage Policy, which provides additional protection against risk.

A Truth-in-Lending Disclosure Statement provides information about the costs of your credit. Effective October 3, 2015, for most kinds of mortgage loans a new form called the Loan Estimate replaces the initial Truth-in-Lending Disclosure, and a Closing Disclosure replaces the final Truth-in-Lending Disclosure.

When you purchase your home, how can you be sure that there are no problems with the home’s title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. A title search and the one-time expense of title insurance prevents these issues.

Not normally. Any licensed title agency is permitted to close and issue Florida Title insurance in the State of Florida. But our company is owned and operated by an attorney, so you get the benefit of legal oversight of your file at no additional charge. Some states are known as “attorney states” and do require all real estate transactions to be closed by an attorney. Check your state’s laws.

No, not unless you reach a separate agreement with an attorney for additional services such as a corporate formation or other legal matters you need assistance with.

The title due diligence takes about an average of 7-10 business days. However, closings can be expedited if all parties cooperate. The average closing takes about 30-45 calendar days due to loan approval timelines. Your contract will specify your closing deadlines.