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Frequently
Asked Questions...
Why
Do You Need It?
Buying a new home is one of life's
most gratifying experiences. As you approach the big day of closing,
however, all the details can be a little overwhelming. You might
easily overlook one of the single most important steps in the entire
process the purchase of Title Insurance on your wonderful new
home.
What
is a Title?
A title is the evidence, of right, that a person has to the ownership and
possession of land. It is possible that someone other than the owner
has a legal right to the property. If that right can be established,
this person can claim the property outright or make demands on the
owner as to its use.
Do
I need Title Insurance?
Most definitely! Title insurance is a means of protecting yourself from
financial loss in the event that problems develop regarding the
rights to ownership of your property. There may be hidden title
defects that even the most careful title search will not reveal. In
addition to protection from financial loss, title insurance pays the
cost of defending against any covered claim.
What
can make a Title Defective?
Any number of problems that remain undisclosed after even the most
meticulous search of public records can make a title defective.
These hidden "defects" are dangerous because you may not
learn of them for many months or years, Yet they could force you to
spend substantial sums on a legal defense, and still result in the
loss of your property.
Who
Selects the Title Company?
The party
who pays for Title Insurance. In Broward and Miami-Dade counties, it
is usually the Buyer. In
Palm Beach County, it is usually the Seller.
But
the lender already requires Title Insurance, won't that protect me?
Not necessarily. There are two types of Title Insurance. Your lender
likely will require that you purchase a Lender's Policy.
This policy only insures that the financial
institution has a valid, enforceable lien on the property up to the
amount of their loan. Most lenders require this type of insurance,
and typically require the borrower to pay for it.
An Owner's Policy, on the other hand, is
designed to protect you from title defects that existed prior to the
issue date of your policy. Title troubles, such as improper estate
proceedings or pending legal action, could put your equity at
serious risk. If a valid claim is filed, in addition to financial
loss up to the face amount of the policy, your owner's title policy
covers the full cost of any legal defense of your title.
The policy insures you up to
your full purchase price and the purchase of owners coverage, with
the simultaneous issue of lenders coverage, is very inexpensive.
How
much does Title Insurance cost?
The premium is directly related to the value of your home. In Florida, a title
insurance premium is based on the purchase price of the property and is a one-time only expense, paid when you purchase
your home. Coverage is provided for as long as you or your heirs own
the property.
When
should I look into purchasing Title Insurance?
Call Partners Title, Inc. as soon as the purchase contract is signed.
With a brief summary of the details, our team of title experts will
begin a search of the public records and issue a title commitment.
Because there are a number of steps we must take to make certain we
know all we can about the title, it is wise to get the ball rolling
without delay.
Should
I shop around for the best Title Insurance deal?
Florida sets what are called “promulgated rates” for title insurance.
Therefore the premium and coverage will be the similar among all
title insurors. Customer service and consistency is what set
Partners Title, Inc. apart from the others.
Can
my title company handle the closing?
Yes, Partners Title, Inc. and its agents act as a central clearinghouse
for the parties involved -- collecting necessary documents, insuring
adherence to the lender's title instructions, making arrangements
for proper payment and distribution of funds. We are fully prepared
to work with you from the beginning of your transaction all the way
through to closing.
What
items are needed at closing?
You will want to have these items complete or in hand when you come to
the closing:
Buyer
- Cashier's check(s) or wire transfer of funds for closing payable to
Partners Title, Inc.
- Photo identification (passport, driver's license, or state-issued
identification card)
Seller
-
Invoices for any paid taxes, utilities, or assessments.
-
Receipts for last payment on mortgages.
-
Any unrecorded instruments that affect the title.
- Proof of satisfaction of any mechanics' liens, chattel mortgages,
judgments, or mortgages that were paid prior to the closing.
Photo identification (passport, driver's license, or state-issued
identification card)
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