The following FAQ has been compiled from real questions asked by real clients. If you have any questions,
whether answered here or not, please feel free to contact us.
What is title insurance?
What if I am unable to attend the closing?
I am married. Will my spouse have to attend the closing?
Why do I need homeowners and/or flood insurance?
What is a survey, and why do I need one?
How are title insurance costs calculated?
What is a prior policy, and what is its purpose?
What do I need to bring to the closing?
If my lender gets title insurance, why do I need it too?
What are endorsements?
What is generally covered by title insurance?
What is a homestead exemption?
How do I file for homestead exemption?
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Answers
What is Title Insurance?
Title insurance is a contract to indemnify against losses arising thorugh defects. The
title insurance company guarantees against loss due to any defect set forth in the policy,
and pays all expenses in defense of any lawsuits that arise from such defect.
What if I cannot attent the closing?
We can have you pre-sign the documents and either email, fax or mail them to you.
I am married. Does my spouse have to attend the closing?
Since florida is a homestead state, your spouse will have to attend the closing, unless
the property is an investment property. Even if you spouse is not on the loan, they will need
to come to the closing, provide identification and execute documents.
Why do I need homeowners and/or flood insurance?
It is a reuqirement of mortgage lenders that you obtain homeowners insurance. If your property
is in a flood zone, then your mortgage company will require you to purchase flood insurance. Your
property survey will include an elevation, which will be used by your insurance company to determine
your flood insurance premium.
What is a survey?
A survey is the real property measurement which delineates the boundaries of a parcel of land. The
survey further delineates the exact location of improvements, easements, encroachments and other matters
affecting the title in question. A survey is normally reuqired by all lenders. Surveys are not required
for condominiums.
How are title insurance costs calculated?
The State Of Florida regulates title insurance rates. The regulated rates are $5.75 per thousand dollars
of the sale price up to $100,000. and $5.00 per thousand dollars of the sales price from $100,000. to
$1,000,000.
What is the purpose of a prior policy?
This policy is the owners policy that is given to the homeowner after purchasing the home. The policy is in
effect for as long as they own the property, regardless of refinancing or loans paid in full. These
policies must be presented to the title company for all refinancing and purchases. If a prior policy
cannot be located, the properties chain of title must be searched for the previous 30 years.
What do I need to bring to closing?
To make it easy for you, we have prepared a checklist, just click here.
If my lender gets insurance, why do I need it too?
Their insurance usually covers the amount of its loan, which is normally less then the property value.
In the event of an adverse claim, the lender would normally not be concerned, unless its loan became
non-performing and it threatened their ability to foreclose and recover its principle and interest. In
the event of such a claim, there is no provision for payment of legal expenses for an uninsured party.
What are endorsements?
Endorsements are an addition to or modification of a title insurance policy that expands the coverage
of the policy. Many lenders require endorsements to further protect their interest.
What is generally covered by title insurance?
The following types of claims or risks are generally covered:
* Forgery and impersonation
* Deed not joined in by necessary party
* Undisclosed (but recorded) prior mortgage/lien
* Lack of competency, capacity or authority of a party
* Undisclosed (but recorded) easement or use restriction
* Erroneous or inadequate legal description
* Deed not properly recored
* Lack of right of access
What is a homestead exemption?
Any person who has legal or equitable title to real property in the State Of Florida and who resides
on the property on January 1 and in good faith makes it his or her permenant home is eligable for this
type of exemption. The exemption allows up to $25,000. to be deducted from the assessed value of the
property when calculating real estate tax.
How do I file for a homestead exemption?
We have a link directly to the State of Florida site. Click here