North Palm Title

Penner

Law

Group

Phone: 561-720-2935

         Facsimile: 561-720-2947

​​North Palm Title Services

​Questions About Title Insurance

Q: What is title insurance and why is it so important?

A: Title insurance protects you against losses due to defects in the title of the property caused by past events, previous owners actions, or improper recordings.  These potential defects may or may not be obvious from a search of the public records.   While some defects such as mistakes in legal descriptions, missing or incorrect documentation, and other errors and omissions may be obvious to a knowledgeable title agent, there are many matters which cannot be detected by even the most careful search of the public records.   These potential hidden title defects include fraud, forgery, missing heirs, omissions, and there can be many others.  A title insurance policy will protect you and any of your heirs' interest in the property.   If a claim is made against your title, your ownership will be promptly defended, in court if necessary, at no cost to you whether the claim is valid or not.  If a valid claim is made against your title as covered by your policy, the title insurer protects you by bearing the cost of settling the claim in order to protect your title and keep you in possession of your property.

Q: What is the cost of title insurance?

A:  The rates for title insurance in Florida are promulgated by the State of Florida.  The cost of title insurance varies based on the purchase price of the property. Unlike other insurance premiums, which must be paid annually, a title insurance premium is paid one time only at settlement. The premium is figured based on the purchase price as follows; up to $100,000 = $5.75 per thousand, over $100,000 = $5.00 per thousand (ex: $100,000 = 575.00; $200,000 = $1,075.00).  In addition, a fair rate is also charged for related services such as title search and closing fees, which are quoted on our fee section of this website. 

Q: Who pays for title insurance?

A:  There are normal trade practices dependent upon which county in Florida the real estate transaction is taking place.  In some counties, the seller pays.  In other counties, the buyer pays.  No matter which county though, It is negotiable as to which party is responsible for paying title insurance at the time the buyer and seller enter into the contract for sale and purchase.  This is an important item that buyers and sellers need to discuss with their real estate professional prior to entering into a legally binding contract. 

Q: What is a closing?

A:  A closing, which is also known as “settlement” or “escrow” is the event where the title to a property is transferred from seller to buyer. Closing is typically held in the title company’s office and involves the completion of all the necessary paperwork to finalize the agreement between buyer and seller. In addition, all financial issues are settled at closing —closing costs — and the necessary documents are signed and filed with local authorities, which successfully transfers the title.

Q: What is a title search?

A: A title search organizes a history of a property by searching the public records of the county in which the property is located.  An examination follows this search and encompasses a knowledgeable review of those documents to determine if the property is able to be transferred, sold, conveyed, or mortgaged free of claims, defects, or other title problems.  The title agent uses this information to prepare a title commitment which shows the status of title and the documentation required to convey free and clear title.  The title search could show defects such as unpaid taxes, judgments, unsatisfied mortgages, probate issues, and incorrect or incomplete recorded documents.  The title agent will work to clear these issues up before a closing can take place.  The title search and commitment will also provide information about any restrictions exceptions affecting the land.

Q: Can a married person purchase property individually?

A: Yes, in Florida a married person can acquire (purchase) and convey (sell) property individually. However, in the case of homestead property, the spouse must join in the conveyance (sign the deed).

Q: If I am the only one borrowing money from the bank, why does my spouse have to sign the mortgage?

A:  If the property is going to be the primary residence of the married couple, then it is necessary for the non-borrowing spouse to sign the mortgage in acknowledgment that he/she knows the property is being encumbered and that there is a note that needs to be paid against same.  In addition, in the State of Florida all property purchased by a married person is considered to be owned tenants by the entirety.  This means it is a marital asset unless the non-buying spouse acknowledges that it is non-marital.