FREQUENTLY ASKED QUESTIONS
TITLE INSURANCE
What is Title Insurance?
Title Insurance protects you from claims that you are not the rightful owner of the property. All lenders require Title Insurance and all cash buyers should purchase Title Insurance even though they are not required to purchase Title Insurance by law.
Who Pays Title Insurance in Florida?
It generally depends on what County the property is located in; however, custom can be overridden by what you negotiate in your Contract. Customarily, the buyer pays for Title Insurance in Miami-Dade and Broward Counties. In other counties, like Palm Beach County, Monroe County, and Orange County, it is common for the seller to pay for Title Insurance.
NOTE: Sellers (including developers) are prohibited from requiring a buyer to use a particular Title company, either directly or indirectly, as a condition of the sale. Buyers may sue a seller who violates this provision for an amount equal to three (3) times all charges made for the Title Insurance.
Do I need a Real Estate Lawyer?
Here are some situations when it may be important to hire a real estate lawyer to close your deal:
- To advise you on your rights, interpret legal issues, and answer your legal questions;
- To avoid hidden pitfalls associated with property Insurance, construction issues, and assessments;
- To obtain remedial action from the seller, if needed.
Is it required to have a Lawyer for closing in Florida?
In the state of Florida, it is not necessary to use an attorney to obtain Title Insurance for your closing. In fact, working with an attorney’s office can often be unpredictable and even stall your closing. Working with a licensed Title Agency like Sweet Settlements, ensures that your Title Company is focused on getting the job done.
Do I need to be physically present for my closing?
No. Our clients frequently are not physically present on closing day. We perform “mail away” closings for both buyers and sellers. We also have Mobile Notaries throughout Florida that can come to you.
What is a Title?
When you purchase a home, you are really purchasing the Title to the property—which is the right to 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.
What is a Title search?
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 claims, defects and other rights or burdens on the property.
What kinds of problems can a Title search reveal?
A Title search can show a number of Title defects and liens, as well as other encumbrances and restrictions, which include (but not limited to) unpaid taxes, unsatisfied mortgages, judgments against the seller and restrictions limiting the use of the land.
Are there any problems that a Title search cannot reveal?
Yes. There are some “hidden hazards” that even the most diligent Title search may never reveal. For instance, the previous owner could have incorrectly stated his or her marital status, resulting in a possible claim by a legal spouse.
Other “hidden hazards” include fraud and forgery, defective deeds, mental incompetence, confusion due to similar or identical names, clerical errors in the records and many more.
These defects can arise after you’ve purchased your home and can jeopardize your right to ownership. “Title Insurance” protects your right to ownership. Let us help ensure that these problems don’t become your problem!
How does Title Insurance protect my investment if a claim should arise?
If a claim is made against your property, Title Insurance will, in accordance with the terms of your policy, assure you of a legal defense — and pay all court costs and related fees. Also, if the claim proves valid, you will be reimbursed for your actual loss up to the face amount of the policy.
How much does Title Insurance cost?
The cost of Title Insurance varies 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. The premium is figured based on the purchase price as follows; up to $100,000 = $5.75 per thousand, over $100,000 = $5.00 per thousand (ex: $100,000 = 575.00; $200,000 = $1,075.00).
Is my transaction secure?
Confidentiality and Security of Personal Information
We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information.
THE CLOSING
WHAT IS A CLOSING?
Closing, which is also known as “settlement” or “escrow” is the event where the Title to a property is transferred from seller to buyer. Closing is typically held in the Title Company’s office and involves the completion of all the necessary paperwork to finalize the agreement between buyer and seller. In addition, all financial issues are settled at closing —closing costs — and the necessary documents are signed and filed with local authorities, which successfully transfers the Title.
What are closing costs?
Closing costs are all costs required to close the real estate transaction. They can include (but are not limited to) surveying fees, property taxes, Title Insurance, attorney fees, closing Agent fees, recording fees, points, loan origination fees, private mortgage Insurance (PMI), and the balance of your down payment.
Prior to closing, you should review your final HUD-1 Settlement Statement to ensure that all the calculations are correct and that you have been given all the credit for deposits and other agreed upon buyer and seller credits. Also recheck all lender, Title, and escrow fees to make sure they are accurate.
Got more questions about closing? We’ve got you covered! Visit our What to Expect with Escrow page to get all the nitty gritty details.