••• Buyer •••
WHAT IS TITLE INSURANCE?
Title insurance protects the insured from a financial loss related to the ownership of a property. There are two policies in the mix at a home loan closing: the lender’s policy, which is required, and an optional owner’s policy. Both are a one-time, upfront cost — not a monthly premium that will be added to your mortgage payment.
WHAT IS COVERED?
Generally, a person thinks of insurance in terms of the payment of future loss due to the occurrence of some future event. For instance, a party obtains automobile insurance in order to pay for future loss occasioned by a future "fender bender" or for the future theft of the car. Title insurance is a unique form of insurance. It provides coverage for future claims or future losses due to title defects which are created by some past event (i.e., event prior to the acquisition of the property.) These risks are far less obvious than those protected against by automobile insurance, but can be just as devastating. The following information will answer some commonly asked questions about title insurance.
OUR SEARCH
In order to determine the status of title, Prestige Title Miami conducts a diligent search of the public records for those documents associated with the property. Prestige Title examines those recorded documents in order to determine if there are any rights or claims that may have an impact upon the title to the property. The title search may reveal the existence of recorded defects, liens or encumbrances upon the title such as unpaid taxes, unsatisfied mortgages, judgments and tax liens against the current or past owners, easements, restrictions and court actions. Matters that are discovered in the search can be excepted, resolved or extinguished prior to the closing of the transaction. In addition, you are protected against any loss or damage resulting from recorded defects, liens or encumbrances that are within the scope of coverage of the particular policy issued in the transaction.
••• Seller •••
WHAT WILL THE TITLE COMPANY NEED FROM ME?
We as a Title company will do everything to insure that your property is free of any defects or liens by conducting an extensive title and lien search. As a Seller you will be given the option to choose to have an attorney represent you during your transaction, however it is not required. We will request your information to order any mortgage payoffs and clear up any title defects. We may also request to see your Previous Owner's Policy, this may help clear any title defects.
WHAT FEE(S) AM I RESPONSIBLE FOR?
The Seller must pay off any open mortgage(s) they have on the property, as well as any judgments or liens that attach to the property. You will also be responsible for commissions paid to the realtors, unless otherwise noted in the contract. A state required seller expenses included is the Deed Transfer Stamp Tax. This can be calculated by multiplying the Sales Price x .0070. Except in Miami-Dade county which is 60 cents for every $100. For More information on this stamp click here.
It is important to note that every contract is unique. In some cases, you may be responsible for the title search and municipal lien search, this option is very common in Miami-Dade and Broward County. This can be discussed with your realtor and is typically found in Section 9 of the "as is contract."
WHAT WILL I SIGN AT CLOSING?
On the day of the closing you will be signing a Warranty Deed, Bill of Sale, and any Required Affidavits. You will also need to provide instruction on how you would like your proceeds to be funded, most often this would be wire instructions to your bank.
