Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. … There are two types of policies – owner and lender.
In Florida it varies per county and can be negotiated in the contract. Generally, the owner’s title insurance and the title/closing company in most Florida counties will be taken care of by the seller, while the loan policy is paid for by the borrower.
A valid owner’s policy will remain in effect for as long as you or your heirs own the property, whereas a valid loan policy is only in effect until full payment of the mortgage is made.
Title examination searches all public records in the county to provide a “clean” title upon conveyance.
- Historical deeds are examined to confirm a proper “chain of title”. This important step makes sure that each person before you had the legal right to sell the property. In this step the legal description of the property is verified on all previous transfers as well.
- The title examiner will review all recorded mortgages and other encumbrances. The title examiner will determine which documents have been satisfied and which ones are still outstanding. Before transferring title all encumbrances must be satisfied in a manner that is compliant with Florida’s Real Property Title laws.
- Some personal judgments can attach to property such as, delinquent child support, student loans and unpaid credit cards.
- Unrecorded liens are the most common. These liens include water bills, code violations, or any other lien that may not be recorded. The “Marketability” of title will be affected by these unrecorded liens.
A Closing Disclosure, or CD, is a form that provides details about the mortgage loan buyers have selected. Loan terms/mortgage costs, the purchase price for the home, how much one will pay in fees and other costs (closing costs), any prior deposits made, allocations between the buyer and seller for property taxes, condominium or homeowners association fees, credits from one party to another, and the costs for title services, title insurance and government recording and transfer charges will all be found on the Closing Disclosure. It is essentially the document that summarizes all the money connected to the home purchase between the buyer and seller.
Depending on the contract, time frames will vary. Closings involving cash can happen in as little as a few days, where as it can take 30-45 days for a closing involving a mortgage.
What are the different types of title insurance policies?
There are two main types of title insurance policies in Florida:
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Owner’s Title Insurance Policy – Protects the homebuyer’s investment in the property by covering hidden issues such as liens, unpaid taxes, or ownership disputes. This policy lasts as long as you own the home.
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Lender’s Title Insurance Policy – Required by most mortgage companies, this policy protects the lender’s financial interest in the property until the loan is paid off.
Together, these policies ensure both buyers and lenders are protected during and after the real estate closing process.
At Shelter Bay Closing Services, we partner with trusted national title insurance underwriters, including First American Title Insurance Company, Doma, and WFG National Title Insurance Company. These underwriters are recognized leaders in the title industry, providing financial strength, innovation, and peace of mind for every transaction. By working with these industry leaders, we ensure our clients receive reliable protection and the highest level of security for their real estate investments.
Title insurance protects against hidden problems with the property’s title, such as unpaid liens, recording errors, forged documents, or undisclosed heirs. It ensures you receive clear ownership rights at your real estate closing.
In Florida, title insurance rates are regulated by the state, so costs are consistent across companies. The premium is based on the property’s purchase price or loan amount and is typically paid once at closing.
The party responsible for paying title insurance premiums varies by county and can be negotiated in the purchase contract. In many Florida counties, the seller pays, but in others, it’s the buyer.