What is title insurance?
Why do I need title insurance?
What types of claims or risks are covered by title insurance?
- An improperly recorded deed
- Forgery and impersonation
- Lack of capacity, legal authority or competence of a party
- Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner)
- An undisclosed (but recorded) prior mortgage or lien
- An undisclosed (but recorded) easement or use restriction
- No right of access
- Inadequate or erroneous legal descriptions
Extended coverage protects 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 covenants, conditions or restrictions.
What is a title search?
Why do I need a separate policy if my lender gets title insurance for its mortgage? The small additional expense of your separate owner’s policy is a bargain. In the event of an adverse claim, the lender would not be concerned unless the claim threatened the lender’s ability recover its principal and interest (through foreclosure). Also, the lender’s policy doesn’t cover the total value of the home, just the value of the mortgage. In the event of a claim, the lender’s policy has is no provision for legal expenses for an uninsured party.
How much can a title company charge in Florida?
The current scale of Florida title insurance rate premiums is as follows (based on the insurance amount):
- Up to $100,000 a rate of $5.57 per $1,000 of insurance;
- Over $100,000 up to $1 Million a rate of $5.00 per $1,000 of insurance;
- Over $1 Million up to $5 Million, a rate of $2.50 per $1,000 of insurance;
- Over $5 Million up to $10 Million, a rate of $2.25 per $1,000 of insurance;
- Over $10 Million, a rate of 2.00 per $1,000 of insurance
Note that you only pay once, and then so long as you have an interest in covered property, you are always covered; the coverage also continues for the benefit of your heirs. Your coverage also continues if you sell the property, so long as you give a warranty of title to your buyer. Further, if a buyer gives you a mortgage to finance a purchase of covered property from you, your coverage protects your secured interest in the property.
Who pays for title insurance?
What if I have a problem?
What is Escrow?
Escrow assures that the lender releases the home purchase funds at or about the same time that the deed is recorded to reflect new ownership.
What is an Escrow Deposit?
How long do funds stay in escrow?
How do the new TRID Regulations affect me?
- Combining several forms and additional statutory disclosure requirements into two forms. This will reduce paperwork and consumer confusion.
- Using clear language and design that will help consumers understand complicated mortgage loan and real estate transactions.
- Highlighting the information that has proven to be most important to consumers. On the new forms, the interest rate, monthly payments, and the total closing costs will be clearly presented on the first page. This will make it easier for consumers to compare mortgage loans and choose the one that is right for them.
- Providing more information about the costs of taxes and insurance and how the interest rate and payments may change in the future. This information will help consumers decide whether they can afford the mortgage loan and the home, now and in the future.
- Warning consumers about features they may want to avoid, like penalties for paying off the loan early or increases to the mortgage loan balance even if payments are made on time.
- Making the cost estimates consumers receive for services required to close a mortgage loan more reliable, for example, appraisal or pest inspection fees. The rule prohibits increases in charges from lenders, their affiliates, and for services for which the lender does not permit the consumer to shop unless a specific exception applies. Examples of the specific exceptions include when information provided by a consumer at application was inaccurate or becomes inaccurate, or when the consumer asks for a change in the services.
- Requiring that consumers receive the Closing Disclosure at least three business days before closing on the mortgage loan. Currently, consumers often receive this information at closing or shortly before closing. This additional time will allow consumers to compare the final terms and costs to the terms and costs they received in the estimate. That will better equip them to raise any questions before they go to the closing table.