Title & Title Insurance

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What is Title?

To put it bluntly, title simply means ownership. A person on title is the owner of the property. A deed is recorded with the county or town when buying a house or land and this shows who the owner of title (AKA owner of the property) is. This is evidence that an owner has a legal right to own, use, and dispose of a property. A chain of title will show all previous ownership, uses, and transfers.

What is a Title Search?

A title search is a review and evaluation conducted that identifies all previous court-recorded documents pertaining to the property. This identifies any possible limitations or adverse matters that need to be resolved prior to closing in order to ensure that the title is free of any liens, easements, or encumbrances before being transferred to you, as the new owner/buyer, putting your mind at ease.

What is Title Insurance ?

Title Insurance protects property owners and their lenders from any unforeseen title defects that can arise after closing occur. 

A title defect can range anywhere from a prior owner’s unresolved lien on the property (if the past owner had some work done on the property and did not pay the contractor so the contractor filed a claim, for instance.) or a prior owner’s debt. (such as a mortgage taken out on the property that hasn’t been paid in full.)

Title Insurance can also protect you against ownership claims or the right to use your property. This is different from homeowner’s insurance. While homeowner’s insurance protects you against future accidental damages to the home, such as a flood, fire, or hurricane damage, Title Insurance protects you from past events that threaten your ownership of the property, such as Liens and Encumbrances

How much does Title Insurance cost?
How often do I pay for Title Insurance?

Unlike other types of insurance policies, Title Insurance is paid by a one-time fee that is paid at closing. The terms of the title insurance policy will remain the same throughout the life of the policy, which is until that owner sells or refinances the property. This makes purchasing title insurance very cost-effective for most buyers. In Florida, the cost of title insurance is set at a promulgated rate. This means the amount you pay for title insurance is based off of the sale price of the house. You pay a certain amount per dollar but that amount changes depending on the price range of the house.

What is the difference between Owner’s Title Insurance and Lender’s Title Insurance?

While an Owner’s Title Insurance policy protects you, as the buyer, and lasts as long as the you have an interest in said property, a Lender’s Title Insurance policy, on the other hand, protects the lender (or investor/bank) as security for the money they made available to the you and makes no protection to you firsthand. This policy lasts for the life of the loan.

Do I really need Title Insurance?
Is there a use for both owner’s and lender’s insurance?

When taking out a mortgage or loan on a property, most lenders will require you to purchase Lender’s Title Insurance. Should a problem arise in title, the Lender’s Title Insurance will only protect the Lender’s interest in the property. For this reason, we cannot stress enough how smart it is for you, as a Homebuyer, to purchase Owner’s Title Insurance, which will protect your own interest and financial investment in the home. This will also continue on in protecting your heirs after you pass, once they become owners. There are a number of things that can go wrong with title so it’s very important to ensure you have a proper title insurance policy.

Who pays for the Title Insurance Policy?

The default payer of the title insurance premium varies by county. It can also be negotiated under the terms of your contract. In most Florida counties, the seller generally pays for the title insurance and chooses the title agency/closing company. In Miami-Dade, Broward, Sarasota, and Collier counties, the buyer generally pays for title insurance and chooses the title agency/closing company.

are there additional closing costs other than title insurance?

Yes! other than the cost of the title insurance premium we detailed above, there are a few other miscellaneous costs relating to closing. Some of which, can include the title search fee, lien search fees, any HOA/COA estoppel letters & miscellaneous fees such as: recording fees, state stamps, and taxes. There is also a settlement fee to the closing company for handling the transaction and acting as your escrow agent, clearing and insuring your title.

Can I get a quote for Title Insurance?

We thought you’d never ask! Getting a quote has never been made easier – just click on either of the links below to get started through one of our closing costs calculators.

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