Title insurance is often a confusing concept to many first-time home buyers. You may wonder what title insurance is, why it is required and who pays for it. It’s vital to have all your questions answered prior to closing, and finding a reliable title insurance lawyer in Florida can help you make the right decisions during the process.

Is title insurance required in Florida?

A title is essentially a foundation for property ownership; whenever you purchase a property, you obtain a title to the land. It gives you the right to possess the property, as well as use it within the restrictions imposed by established limitations. You may already sense the importance of owning title insurance, but let’s see what exactly title insurance is.

Title insurance protects the buyers from different ownership problems of the property’s past. In a way, it is different than most other types of insurance because it doesn’t protect you from future losses but instead protects you from past occurrences, such as:

• -Fraud
• -Omitted heirs
• -Errors in the public record
• -Undiscovered liens

Suppose you’ve recently bought a property and discovered unpaid property taxes left by the previous owner. In case you had previously opted out of title insurance, the financial burden from such taxes under Florida law would be left in your hands.

To prevent such a scenario, it’s advised to get title insurance services in Florida and ensure there are no title defects present. While this is not a mandatory step before your closing, it is a highly beneficial one; after hiring a reliable title insurance company to conduct an extensive title search of your future property, you can rest assured knowing the risks of any foreseeable title issues are minimized.

It’s not uncommon for buyers and lenders to have separate title insurance policies, each protecting their individual interests for the property in question. However, once the loan is fully paid, a lender’s title insurance policy is no longer needed. On the other hand, a buyer policy is active under Florida law for as long as they have an interest in the policy.

Title Insurance and Settlement Services in Florida

If you are new to the real estate world, you may want to minimize all your risks and trust an experienced Florida title insurance company with your case. With that in mind, our real estate law company in Miami highlights the services you can expect a professional title insurance company to provide:

• Title search and examination

• The first step in the title process includes the company conducting thorough research to learn more about the property’s history. The title search shows the property’s past ownership details and uncovers any potential threats that could halt the sale. The title search for a house purchase transaction will also reveal all owners who have a stake in the property’s transfer and who must sign vesting forms at the closing.
  Additionally, the title company will search and review the property for liens or judgments related to bankruptcy proceedings, divorce decrees, unpaid mortgages, past-due property taxes, and other issues. Before the transfer of ownership may take place, these unpaid balances must be settled.

• Resolving title issues and fixing errors

  In case the company finds some issues, they’ll start working on resolving them as soon as possible to keep your closing on schedule. During this step, the Florida title insurance company may need to contact the seller to learn more about ownership disputes or ask for some missing paperwork.

• Issuing title insurance

  Once the company is confident there are no title defects to the property, they can move on to the next step and issue title insurance policies. That includes both the lender’s title insurance as well as the owner’s title insurance policy, protecting both parties against claims that had happened in the past.

• Settlement and signing

• After creating a clear title and insurance policy, the real estate company can schedule a closing date, also referred to as the settlement date. The closing documents will be prepared in collaboration between your title company and your lender. You should be ready to sign your closing package documents, which include paperwork for a purchase or refinancing mortgage, on settlement day. It will also include the agreement transferring ownership of the property in the case of a house purchase.

• Mortgage recording and funding

  If everything goes as planned on your closing day, the title firm will submit your mortgage for recording at the county records office. The information will then be recorded for public records by local officials.

How much does title insurance policy cost?

As mentioned earlier, there are many title-related risks a title insurance policy could save you from. Imagine purchasing a home only to find out a long-lost relative of the previous owner with property rights claims they had never approved of the sale in the first place. If you’re not covered by title insurance in such cases, you may lose everything you paid for. Your title insurance could cover the professional work needed to find and fix any title issues before significant financial losses arise.

Now, you may wonder who pays for the policy and how much is title insurance in Florida.

To begin with, the cost of title insurance varies across the states, and it mainly depends on the value of the property, but also a few additional factors, including:

•    .The title search and examination
•    -The expected expense of any title defects
•    -The geographic location of the property
•    -Purchase price
•    -Negotiations with the seller
•    -State regulations
•    -Bundle discounts

If you’re looking for Florida title insurance, you should be aware that the State Department of Financial Services sets its cost in collaboration with financial institutions. The price of title insurance Florida typically varies from $500-$1,500. Besides this owner’s coverage, the insurance may have additional costs covering the closing processes of the property acquisition. These extra costs may include the following:

•    -Title search costs
•    -Reissue rate
•    -Simultaneous issue costs

Who pays for title insurance policy in Florida?

Determining who pays for the title insurance varies across different counties in Florida. While in some cases, the seller customarily pays for the policy, in other counties, it falls under the buyer’s costs.

It’s essential to remember that, in a lender’s title insurance policy, the more you borrow, the more expensive the police will be. Similarly, in the case of an owner’s title insurance policy, the less expensive the property is, the less expensive your policy will be (and vice versa). To accurately calculate title insurance Florida costs, we suggest you find a reliable attorney team to guide you through the process and ensure you can be confident in this big purchase decision.

How to Choose a Professional Title Attorney Team

The first step towards a successful closing and no risks around your title is finding a reliable title insurance company. Having a professional and experienced title attorney team by your side will ensure you get the best possible deal and leave no room for potential title-related risks. When choosing a trustworthy American title insurance company, these are a few essential things to look for:

• The company’s reputation

• Considering all the responsibilities mentioned above of a title company, you want to find a trustworthy and reputable one. After all, their team will coordinate one of your life’s most significant purchases. Besides checking their website to see whether all the essential information is present, you should also look for online reviews.

• Their professional experience

• Using up-to-date technology can help the company avoid mistakes and keep your sensitive information safe. Their experience can either make or break your closing.

• Office location

• Since you’ll be signing the closing paperwork in person, it would be best to find a nearby real estate company that meets all the other listed criteria.

• Fees

• A reliable company should transparently disclose its fees on each service and note if any of the prices can change. Some companies also provide a Florida title insurance calculator to help you predict your costs.

• Customer service

• When contacting any American title insurance company, pay attention to their customer service. Are they responsive in providing accurate information and answering all your questions? Since you may collaborate with them in the future, finding a company with excellent customer service is essential.

Get in touch with the most reliable title insurance lawyers in Florida

While you may be impatient to engage in more exciting activities, such as picking new hardwood floors for your future house, it’s essential to take some time to inform yourself about the importance of title insurance. It’s now evident how a well-executed policy can protect you from different title defects and potentially save your money and the property in the long run. If you’re interested in buying title insurance to ensure peace of mind, don’t hesitate to contact us today.

At Law Mandel, we’re here to help you with your title services needs. We are proud to offer outstanding, ethical representation and counsel. We’re committed to looking out for your best interests.