frequently asked questions
Let’s divide our questions in a step-by-step process
1) The Real Estate Contract
2) Real Property Title and Title Search
3) Title Insurance
4) Title Transfer
4) The Closing
6) The underwriter
the Real estate contract
The real question is - What happens after you sell or buy a Florida Real Estate property?
If you are looking to buy or sell a property once you find what you are looking for you will have to sign a contract.
The parties involved on this part of the negotiation are the Buyer, his/her Real Estate Agent, the Seller, and his Real Estate Agent. The Buyer Real Estate Agent assists him in looking for a property, negotiate the price and facilitate the transaction, and the Seller Real Estate Agent assists him/her to advertise and show the property, identify a potential buyer, negotiate the price and terms of the sale.
When the transaction is by-owner, the Title Agent can assist one of the parties with guidance for the preparation, terms, and details for the Real Estate Contract to be signed.
The next step after the contract is signed, when in Florida, is the buyer that chooses the Title Agent that will be used in each specific transaction and this Title Agent will take over the transaction after the contract is signed.
The real question is – what does a Title Agent do?
Responsible for Clearing the Title, Doing the closing on time, and having a 99.99% accuracy responsibility, the Title Agent should be providing both parties, buyer and seller, an overall satisfactory closing experience every time.
The main responsibilities of a Title Agent include, but are not limited to:
- Manages the Escrow Account (when applicable)
- Performs the Title Research and Examination on the title for the property
- Predicts any potential issues with the title exchange
- Checks the seller’s Payoffs, Estoppel Letters, Municipal Lien Searches, Surveys, etc., and fulfill them
- Prepares all necessary documents for each party in the transaction
- Clears all parties in the transaction
- Transfers the property title (ownership) between the parties
- Coordinates the closing with all parties involved in the transaction
- Facilitates the signing and notary of all required documents for all parties
- Records all documents after signing
- Issues the title insurance policies
- Issues payment from the Escrow Accounts to all involved parties
The Title Agent plays a significant role in Real Estate transactions in Florida. It is important to choose the right Title Agent, that carries a good track record and a long time in the market. The Title Agent jurisdiction is Statewide. Choosing carefully is a very wise decision that is often neglected by the buyer.
The real question is - Who chooses the Title Agent in Florida?
The final decision is the buyer, however often Real Estate Agents and/or lending companies may persuade the buyer to use a specific Title Insurance Agent in the state of Florida as miss informed buyers often do not know they are the ones that make the final decision. The reasons may vary, maybe they like working with the Title Agent for a personal reason, maybe their company has an interest in the Title Agent, or maybe they receive perks for referring to the business. Whatever the reason, it’s the buyer and seller best interest to do their due diligence and choose the right Title Agent for the deal.
A good way to decide which Title Agent to use would be making an appointment for an interview, read the reviews online on google and social media pages, check their credentials with the Florida Department of Financial Services, call the Title Agent and check their response time, and request a title insurance quote online.
It is smart to shop for your Florida Title Agent the same way you would shop for your new mechanic, go visit the location, meet them, ask questions, read the reviews, not just the good ones, also some of the bad ones as well, mostly research just like any other service you are going to purchase. Not every Title Insurance Agent is the same. The Title Agent you choose will play a significant role in a very large investment for your family and this experience needs to be successful and stress-free. By being an informed buyer and choose the Title Agent that best fits your needs — even if it’s not Title Link.
Please take the time to read our About us page and drop by to meet our staff and get a cup of coffee. We live by our Vision and Mission Statements; we have a stellar team of processers and see for yourself how our company values are implemented on everything that we do.
REAL PROPERTY TITLE AND TITLE RESEARCH
The real question is – what is the Title Agent responsible for?
Title Company, Title Agent, Title Insurance Agent and/or Title Insurance Agent are terms loosely used when talking about the transfer of a property title in Florida, but in reality, they all mean the same thing, A state appointed and certified agent that may or may not have a staff working on each title transaction in a corporation.
When a property is sold in Florida, weather this is a commercial or residential, the buyer is really purchasing a piece of paper that documents who owns that property, and by consequence gives the buyer the right to occupy and use the space, and the seller a due date to free up the location.
Property Titles may be contested based upon past rights and claims asserted by past owners, or other parties. Any claim in a property can cause the buyer to lose money, time or even the property itself.
The title company is responsible to take many steps in the due diligence of researching the property’s history to see if there is any outstanding claim, lean or other issue that may be contested in closing or even past the closing date.
The real question is – What is a Title Search?
Let’s start by establishing what is a title search, a title search is a detailed investigation of the historical records of the appointed property. These records may include, but are not limited to, deeds, court records, property indexes, name indexes, as well as an assortment of documents.
The title search has the purpose of verifying that the seller has the right to transfer ownership (sell the property), to discover any claims against the property, to find defects on any past documentation that may impede that sale, to find parties that may have rights over the property, or even burdens on the property as well as its original owners (the sellers) that may impede the sale of the property in any way, shape or form.
The real question is – Can a property have problems that impede it to be sold?
An effective title search can show more than a few defects, unknown liens, illegal deeds, missing heirs, forgeries, undiscovered encumbrances, boundaries or Survey Disputes, undiscovered will, other impediments, and restrictions on a property.
Some examples may include unpaid taxes, unsatisfied mortgages, judgments against the seller, and restrictions limiting the use of the land as well as many others that may be particular to the location, person selling, or even the complex that the property is located in.
The real question is – What are some Hidden Hazards in a title transaction?
Unfortunately, yes, “hidden hazards” may be found even after the most diligent title search is performed. For example, the previous owner could have incorrectly stated his or her marital status, resulting in a possible claim by a legal “hidden” spouse.
Other examples of “hidden hazards” may include confusion due to similar or identical names, fraud and forgery, defective deeds, mental incompetence, clerical errors in the records and many others. Regrettably, these defects may arise even after the title has been transferred and jeopardize the right to ownership, that is why it is so fundamentally important to have title insurance that will protect that right.
Florida leads the nation in fraud and ID theft is an article that was posted on the Sun Sentinel in 2015 that explains in detail the type of fraud and protection that the title insurance can protect a buyer from.
The real question is – How much can a Title research and insurance cost?
The typical cost of title search in Florida is ranges anywhere from $150 to $1500 and it depends on the type of property is in question, however it is the seller’s responsibility to cover this fee. This should be listed as a separate line item contained on the Settlement Statement. The Settlement Statement outlines all the associated costs and identifies who pays what fee in every transaction.
However, this does not need to be a surprise found at closing, you can request quotes and also get a pre-closing statement that will help you assess all expenses and verify that what has been agreed between the buyer and the seller is correctly laid out on the document.
title insurance
This is the real question right!
Title insurance is an insurance policy provided by the Title Agent that protects the buyer against loss in the case that any “hidden hazard” — results in a claim against the buyer’s ownership.
The party who pays for the policy is normally determined in a county by county rolling, and it is a separate item on your closing statement.
The real question is - How much does title insurance cost in Florida?
This cost really varies by county, and the purchase price of the property. Different from other insurance policies, which renew annually, the title insurance premium is only paid one time at closing. Title insurance premium is Florida is based on a promulgated rate calculation, which is determined by the state.
A part of the fee is determined based on the purchase price:
· Up to $100,000: $5.75 per every thousand
· Over $100,000: $5.00 per every thousand
The math –
When a property worth $ 100,000.00
would have a title insurance fee of $ 575.00
For an exact cost of the correct property Title insurance amount reach out for a specific quote!
The real question is - Who pays for title insurance at closing in Florida?
In the State of Florida, the party responsible to cover the costs for the title insurance policy varies per county, and these costs can be negotiated in a specific contract.
In most counties in the state of Florida the seller is generally the party responsible to pay for the title insurance but not necessarily chooses the Title Agent.
Here are some counties where the buyer generally chooses the Title Agent and pays for title insurance:
- Broward County
- Collier County
- Miami-Dade County
- Sarasota County
All costs are negotiable and can be specific to the contract signed by the buyer and the seller, however title and closing costs are typically paid by the seller. The best thing to do is to request a non-obligation quote, this will help determine which fee each party is responsible for paying.
Who chooses the Title Agent in Florida?
In general Buyers and Sellers are not concerned about who will their Title Insurance Agent be, many Real Estate Agents or Lenders have an existing relationship with a specific Title Agent they may prefer to work with. What many home buyers do not understand is that, the Title Insurance Agent Buyers and Sellers work with can have a massive impact on the closing experience!
What does choosing the right Title Insurance Agent can lead to?
- Stress-free closing experience
- On-time Closing
- No post-closing title transfer issues
- Affordable title insurance and closing costs
- Peace of mind – the investment will be secure for years to come
Make sure you know the facts about the importance of comparing your options and choosing the right Title Agent for your needs!
The new Owner’s Title Insurance Agency is normally chosen by the party who pays for the new Title Insurance Policy. However, both parties can have an opinion and the non-paying party can make a counteroffer that includes a new proposed Title Agent, making sure that this will not delay the closing process and/or save a considerable amount of money.
The seller usually pays for the new owner’s Title Insurance Policy in many counties in Florida, and that should give them the right to select the Title Agent. The only requirement would be that, in this case, a buyer would be forced to use the Title Agent the seller chooses, and that specific Title Agent may or may not provide a good client or closing experience in the deal. In Broward, Collier Miami-Dade, and Sarasota counties, where the buyer typically chooses the Title Insurance Agent this may not be an issue, it is important to do your research.
The optimum goal in any transaction is to close correctly and on time. Buyers and sellers can usually agree on a Title Agent best positioned to do just that in order to close the transaction without any issues. Many buyers and sellers in Florida rely on suggestions from their Real Estate Agents referrals to provide a smooth, stress-free closing as they have had experiences with them before.
title transfers
Unfortunately, title insurance is not transferable when the ownership of a property changes, and it correspondingly cannot be assumed by a new owner. In fact, a title insurance policy itself terminates when the legal title on a property change from seller to new owner (aka buyer).
The process of transferring a title in Florida is fairly simple — Let’s assume the title is unrestrained, meaning there are no conflicting claims or liens on the property a simple Quitclaim Deed could be used to transfer the title of the property to the new owner in simple cases like this.
Due to Florida having so many probates, unauthorized title transfers and title fraud a Quitclaim Deed can be a quick solution, but the recommended process to be used is always a Warranty Deed and Title Insurance for maximum security.
the closing
This procedure also carries the names of closing, settlement, or escrow. This procedure is when all necessary documents are signed by the buyer and the seller, the title of the property at hand is transferred from seller to buyer and sometimes the keys are exchanged.
In old days the closings were typically held at the Title Agent’s office, however since covid-19, and also used in some special circumstances, it can be done by Doc (Secure Mail), digital, or on a Video Conference with the use of a Certified Notary appointed by the underwriters (this involved party will be explained later in the Q&A). Another form of closing procedures today is the use of named mobile closings there is a network of mobile closers across the entire United States to accommodate any closing needs.
In a nutshell this process involves the completion, signature, and execution of all documents that signify the finalization of the transaction between the Buyer and Seller.
All financial issues are settled at closing and are normally line items contained in the Closing Statement and referred to as closing costs. Earnings are sent to the Seller and the necessary documents are filed in the public records, which effectively transfers the title.
The closing costs are all the fees for services required to close a Real Estate transaction. They may include:
- Attorney’s fees
- Closing fees
- Down payment balances
- Loan origination fees
- Loan points
- Private mortgage insurance (PMI)
- Property taxes
- Recording feesv
- Surveying fees
- Title insurance
It is imperative to review your final Settlement Statement (pre-closing statement) to ensure all the calculations are correct, including credits for past deposits and any other agreed upon Buyer and Seller credits. All lender’s title and escrow fees need to be rechecked to make sure they’re accurate.
The right Title Agent can facilitate the closing procedures and issue the title insurance policy, - issuing a title insurance policy is one of the most important jobs of a Title Insurance Agent – as it is the process that assures the property is clear to close, and it creates a “clean title”. If the Title Insurance Agent fails to do this part of the process properly, the Buyer or the Seller may have to make a claim on the title policy after closing, when this happens the Title Agent incurs a penalty and/or even the risk of facing the loss its license. And the buyer may lose its newly acquired property.
Other issues that may arise from choosing the wrong Title Agent are issues of communication and fraud.
Title Link uses a 24/7 proprietary and secure digital communication platform, that is considered state-of-the-art e-services, as well as other services, processes, and procedures to keep your non-public information (NPI) secure.
Title Link employs the Best Practices in the market today set forth by ALTA (American Land Title Association) and adhere to ALL rules set forth by the CFPB (Consumer Financial Protection Bureau) to ensure the safety of all our Buyers and Sellers.
Other considerations are the company’s core values, at Title Link you will see on our about us page details on our core values, named below:
- Accuracy and Positive Attitude
- Confidentiality
- Integrity
- Innovation
- Orderliness and Timeliness
- Respect
- Teamwork
As well as our Vision and our Mission that clearly places the Buyers and Sellers we represent as the number one priority in our company.
In today’s world it is crucial to select your Florida Title Insurance Agent carefully — this selection is not just about the cost of the service, but the reason one company is distanced from the rest, the quality of services.
When searching for a reliable Title Insurance Agent, do your homework. Be skeptical — don’t take anyone’s word for it! Search the internet, read the reviews, call a few title companies, check credentials, and request quotes not be faced by surprises.
We at Title Link wish you much Luck on your choices of property and service providers in the process. We hope you choose Title Link for a memorable, professional, and engaging closing experience!
THE UNDERWRITERS
An underwriter is a certified company that authorizes its agents to write title insurance policies. The underwriters are the ones who, in the end, assume the financial risk and guarantees the property against insurable documentation deficiencies. If any undiscovered legal issues ever arise, a title insurance underwriter will defend the power of the title policy.
The underwriter is more like a copywriter, they look for errors on the public records that can and most probably will affect the accuracy of a deed or survey of the property in question.
The Title Insurance Underwriter will pay close attention to try to catch any errors a Title Agent may commit, constantly auditing and rating each Title Agent’s performance.
One of the major differences between an underwriter and a title agent is that the title underwriter is an entity that authorizes and issues authority for its agents (aka title companies or title agencies), to write title insurance policies. The underwriter assumes the financial risk as they are the financial institution that stands behind the policy and insures the property against insurance defects. They also agree to defend the new owner (buyer) of the title policy in court should ever the need arise surrounding legal issues with the title.
A title underwriter possesses skillset that allows them to do their job accurately and effectively. They uphold knowledge and expertise about the Real Estate law and how it applies to all specific situations, they also possess the ability to analyze and understand the related risks involved in a transaction. Underwriters also present the experience and judgment to perceive the significance and probability of the risks, as well as a strong awareness of the many complexities of a title insurance policy.
A Title Agency works as the agent for the underwriter, which has been carefully evaluated to meet strict standards of the underwriter. The Title Agent is authorized to issue title commitments and title policies on behalf of the underwriter, as well as produce documents for named transactions. The title underwriter trusts that their named title agents will accurately and meticulously inspect property records so as to determine adequate ownership, as well as make exploratory research for any possible liens, violations, or easements associated. Title Agents should not represent any title holder in court, nor give legal advice pertaining to that if such a situation arose.
Both entities are regulated by the Bureau of Insurance, which regulates the insurance industry through examining and licensing procedures of insurance companies, reviewing rates and coverage forms, and conducting audits.
Discover why our Title Insurance and Closing Agency serves Florida for over 20 years and has been rated 5 out of 5 stars by people just like you, over and over again on Google and other social media platforms.
Do not hesitate to call us for more information
The information provided on this site is free and generic, however it should be able to assist you in understanding the entire process related to Title Insurance in Florida from the moment you find your new property and sign the contract all the way to the day of closing.
*LEGAL DISCLAIMER
Articles published by Title Link a DBA of Title & Escrow Network Inc are purely for educational purposes and provides generalized informationof the topics covered. These articles should not be considered as legal advice, all properties have particularities, and they need to be analyzed in a case-by-case basis.
Please contact Title Link regarding your property details.
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