Question 1

Can a Title Company conduct escrow?

Accepted Answer

A title company can generally acts as an escrow agent. They can explain all the costs involved for both parties, secure the lender, and prepare a closing statement. The title company will then collect money from both buyer and seller, signed documents, and approval given by lender. The lender wires money to the title company to pay all the expenses, any mortgages, and the seller their proceeds.

Question 2

What is a Title Company?

Accepted Answer

Title companies conduct "title searches" looking at real estate records trying to find information about the property you are trying to purchase.

Such information includes:
Identifying the legal owner of the property
Liens
Judgments
Unpaid taxes

After the search is complete, the title company will complete a "Commitment of Title Insurance" on behalf of either the lender or the buyer. This step ensures the buyer is receiving a clear title on the property and any outstanding issues are resolved. Once these steps are done, the title company will use their underwriter to issue a policy of title insurance covering the lender and the buyer.

Question 3

What is a Title?

Accepted Answer

A title is a right to ownership of specific real estate property. Included is the right of possession, right of exclusion, right of control, the right of enjoyment, and right of disposition. Titles can change hands through a will, court decree, law, or by selling the property. Any time a title is transferred it is recorded in a deed and filed with county clerks.

Question 4

What is Title Insurance?

Accepted Answer

Having title insurance protects the lender and the buyer from financial loss due to title defects.

Question 5

Do I need Title Insurance?

Accepted Answer

Unless you are paying for your home out of pocket, your lender will more than likely require you to purchase title insurance. It's advisable to purchase a policy to protect yourself as well. By doing so, you are protecting yourself from title defects that may give someone else claim to your property.

Question 6

What does title insurance protect you against?

Accepted Answer

The insurance policy will pay for any legal defense costs and reimburse you for any mortgage payments you are unable to make due to losing the house to someone else's claim on it.

Question 7

What is a title report?

Accepted Answer

The title report is prepared by the title company and discloses any information about easements, restrictions, ownership, and liens on the home.

Question 8

Will my real estate agent know anything about the title to the home?

Accepted Answer

Many real estate agents will have a thorough understanding of what a title is. The nuances of title insurance, and recommend a trusted title company. However, no one will know precisely what information is related to the title until a title search is completed.

Question 9

How much can I expect to pay for the title insurance?

Accepted Answer

Florida’s title insurance premium is based on a promulgated rate calculation, which is determined by the state of Florida.

Florida’s title insurance premium is also determined based on the purchase price as follows:

Purchase Prices up to $100,000: $5.75 per thousand.
Purchase Prices Over $100,000: $5.00 per thousand

This does not include other fees associated with a real estate closing such as doc stamps, closing or settlement fees, endorsement fees, title search fees, etc.

Question 10

Can the buyer pick the title company?

Accepted Answer

The default payer of the title insurance premium varies by county. It can also be negotiated under the terms of your contract. In most Florida counties, the seller generally pays for the title insurance and chooses the title agency/closing company. In Miami-Dade, Broward, Sarasota, and Collier counties, the buyer generally pays for title insurance and chooses the title agency/closing company.

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