FREQUENTLY ASKED QUESTIONS:

WHAT IS TITLE INSURANCE?

If you’ve ever bought a home, you’re familiar with paying thousands of dollars for those ambiguous expenses known collectively as “closing costs.” Nestled among those escrow fees, recording fees, taxes, commissions and points is something called “title insurance.” If you ask your broker or agent why you’re shelling out hundreds (if not thousands) of dollars for this, the reply will be something like, “This covers you in case the person selling the home (and/or land) doesn’t really own it.”

Huh?

A house (and/or land) isn’t like a stereo, which can be easily stolen and sold at the local pawnshop. How could a ne’er-do-well sell someone else’s house (and/or land)? That is crazy!

Actually, it’s not so crazy, though, the problems are rarely about illegitimate owners (but it does happen). Title insurance kicks in when a family member (e.g., an ex-spouse) or previous owner has a legal claim to the property. Also, the insurance may cover situations where someone has placed a lien on the house, perhaps a contractor who was never paid by the previous owner. If any title problem is found at the time of the title search an experienced title insurance agent can get it cleared prior to closing with little effort.

Though the amount of title insurance charged in the State of Florida is regulated by law and can’t be “discounted”, most home buyers don’t look for the best deal on closing fees charged by the title insurer for handling the complete closing, including disbursing escrow funds after closing. Those fees can vary by hundreds of dollars. BE A SMART SHOPPER! No matter what the price quoted, you are paying for the same service.

WHO PAYS FOR TITLE INSURANCE?

The Seller is the most common party to pay for the owner’s title insurance. However, the parties can agree to split the cost between them or the Buyer can pay for his own owner’s policy. A Loan policy is always paid for by the buyer/borrower. THOSE WHO PAY FOR THE TITLE INSURANCE ARE THE ONES TO DECIDE WHO PERFORMS THE CLOSING AND WRITES THE POLICY(IES). BE A SMART SHOPPER!

HOW LONG DOES IT TAKE TO CLOSE AN AVERAGE CASH TRANSACTION?

Generally 3 – 10 business days (+/-), depending on the circumstances involved.

WHY ARE THERE TWO TYPES OF TITLE INSURANCE POLCIES?

One is an Owner’s Policy which means it affords coverage to the owner of the property (and/or building) in the amount of the purchase price that would cover the owner in case any outstanding debt or lien (i.e. unpaid mortgage not in their name) is claimed to be due and owing after the title to the property is transferred to them. An Owner’s Policy affords no coverage to a Lender/Mortgage Company.

The other is a Loan Policy which means it affords coverage to the mortgage company of record in the amount of the mortgage that would cover any outstanding debt or lien which may be claimed due and owing after the mortgage is placed of record on borrower’s behalf. A Loan Policy affords no coverage to the owner.

HOW LONG DOES IT TAKE TO CLOSE A REFINANCE TRANSACTION?

Generally a minimum of 7 business days (+/-), depending on the circumstances involved.

HOW LONG DOES IT TAKE TO CLOSE A PURCHASE WITH CONVENTIONAL FINANCING?

Generally a minimum of 10-15 business days (+/-), depending on the circumstances involved.

WHEN DO I HAVE TO ORDER A TERMITE INSPECTION?

A termite inspection is only required at the request of a lender, insurance company or buyer to protect their interest in said property.

WHEN DO I HAVE TO GET A SURVEY?

Buyers, at their own expense, generally obtain surveys to disclose any encroachments on the real property or locate improvements which encroach on setback lines, easements, lands of others or violate any restrictions. In addition, a survey will outline the real property subject to the closing.

WHO PAYS FOR RECORDING THE DEED?

Seller shall furnish the deed and Buyer shall pay the cost of recording of same (unless otherwise agreed between the parties).

WHO PAYS FOR DOCUMENTARY STAMPS ON THE DEED?

Buyer is responsible for paying the documentary stamps on the Deed (unless otherwise agreed between the parties).

WHO PAYS FOR RECORDING THE MORTGAGE?

Buyer is responsible for paying the recording fees of the mortgage, if one is obtained for the property.

WHO PAYS FOR THE INTAGIBLE TAX ON THE MORTGAGE?

Buyer is also responsible for paying the intangible tax on the mortgage.

WHY IS IT NECESSARY FOR ME TO BRING MY DRIVER’S LICENSE OR IDENFICIATION TO CLOSING?

When a Florida Notary Public (which we are) notarizes a signature it is required by law that they check a driver’s license or a state I.D. to verify the person is, in fact, who they say they are. Also it confirms the proper spelling of their name.

WHAT HAPPENS WHEN THE COUNTY TAX BILL COMES TO THE BUYER IN NOVEMBER? WHO PAYS FOR THE ENTIRE BILL?

At the time of closing the taxes are pro-rated (unless otherwise agreed between the parties) so the seller is charged for the January 1, through day of closing amount of the bill and the buyer then pays the full bill when it comes in November of the same year.

* PLEASE NOTE: ANY TERMS OF ANY CONTRACT FOR SALE AND PURCHASE CAN BE CHANGED, AS AGREED TO, BY THE SELLER(S) AND BUYER(S) WITH REGARD TO ANY CHARGES ASSUMED BY ANY PARTY.

The information provided herein is given simply as general information and should not be used for legal purposes.