Questions & Answers

What is a closing?
Is where the title (ownership) to the property is transferred from seller to buyer. The closing is usually held at the title company, however, sometimes it can also be held at one of the realtor’s office.

What is Title Insurance?
Title insurance protects your interests and the interests of the lender, should a claim be made against your property.

How does title insurance protect me if a problem should arise?
Title insurance will, (in accordance with the terms of your policy) pay all court costs and related fees to clear the title problem or you might be reimbursed for your actual loss up to the face amount of the policy.

How long will my title policy protect me?
The title policy will protect you as long as you own the property.

Who pays for the title insurance?
Depending on the terms of the real estate contract Buyer or Seller might pay for the title policy. In most Florida counties, the seller generally pays for the title insurance and chooses the title/closing company.

What is the difference between the Owner’s Policy and the Lender’s Policy?
An Owner’s Policy insures the Buyer against title problems and a Lender’s Policy insures the Lender (Bank) that they are the first lien on the property.

What is the job of a title company?
The title company coordinates the closing with the buyers, sellers, lenders, and realtors. Since the Title company is insuring the title, they make sure that all liens, mortgages and possible issues are resolved or paid at closing. Prior to closing, the primary objective of the title company is to clear title and make sure all judgments, liens, encumbrances are satisfied at closing. The title company also prepares all closing documents including the HUD (closing statement). Finally, buyers and sellers usually gather at the title company’s office to sign and notarize all their documents.

These are some of the tasks a title company usually handles:

  • Order title search
  • Examine title.
  • Order mortgage payoffs
  • Order HOA/Condo Association payoffs.
  • Prorate and pay property taxes.
  • Check for municipal liens and code violation.
  • Prepare HUD (closing statement).
  • After closing, payoff all mortgages, liens. Judgments, HOA dues.
  • Record the deed and mortgage with the Clerk of the Court.
  • Send the loan documents to the lender (bank).
  • Issue owners title insurance policy.
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