Questions & Answers

A: An insurance policy--protecting against loss should the condition of title to land be other than as insured.

A: When you buy a home, or any property for that matter, you expect to enjoy certain benefits from ownership. For example, you expect to be able to occupy and use the property as you wish, to be free from debts or obligations not created or agreed to by you, and to be able to freely sell or pledge your property as security for a loan. Title insurance is designed to cover these rights you bargain for.

A: Not at all. At the mere hint of a claim adverse to your title, you should contact your title insurer or the agent who issued your policy. Title insurance includes coverage for legal expenses which may be necessary to investigate, litigate or settle an adverse claim.

A: The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest. And, in the event of a claim there is no provision for payment of legal expenses for an uninsured party. When a loan policy is being issued, the small additional expense of an owner's policy is a bargain. Owner's title insurance protects purchasers of real estate against title defects that may exist against the property.

A: Judgments, liens, unsatisfied mortgages, missing heirs, forgeries, unpaid taxes, etc. These are just a few of the title problems that a thorough search of the public records can uncover.

A: Sure. First understand there are different levels of coverage: Standard coverage, extended coverage, and more comprehensive coverage. Standard coverage handles such risks as:

Forgery and impersonation;

• Lack of competency, capacity or legal authority of a party;
• Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner);
• Undisclosed (but recorded) prior mortgage or lien;
• Undisclosed (but recorded) easement or use restriction;
• Erroneous or inadequate legal descriptions;
• Lack of a right of access; and
• Deed not properly recorded.

An extended coverage policy may be requested to protect against such additional defects as:

• Off-record matters, such as claims for adverse possession or prescriptive easement;
• Deed to land with buildings encroaching on land of another;
• Incorrect survey;
• Silent (off-record) liens (such as mechanics' or estate tax liens); and
• Pre-existing violations of subdivision laws, zoning ordinances or CC&R's.

A: Title insurance rates are regulated by the State of Florida as follows: $5.75 per thousand dollars of the sales price up to $100,000, and $5.00 per thousand dollars of the sales price from $100,001 to $1,000,000.00.

A: If the prior policy is the Owner's policy that is given to you when you purchased the home you may be entitled to a re-issue credit. If the transaction is a refinance the prior policy may entitle you to a re-issue credit (discount) on the closing statement. The prior policy must be the same as those involved in the current transaction; the prior policy does not need to be issued by the same company that is issuing the new policy for a reissue credit to apply.

A: Florida is a Homestead state. This means that unless you are purchasing investment property your spouse will need to attend the closing, provide proper identification and be prepared to execute documents. If you are obtaining a mortgage and your spouse is not on the loan, they will still need to attend the closing, provide proper identification and be prepared to execute documents.