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Frequently Asked Questions |
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- What is title?
Having "Title" to a property means that you are legally recognized as the owner. You are authorized to use the property within the legal restrictions imposed by authorities.
- What is title Insurance?
The purchase of a home is, in most cases, the largest financial commitment in one's lifetime.
Title Insurance is a contract to indemnify against losses arising through defects in the title to real estate. If the title is insurable, the company guarantees against loss due to any defects in title not specifically set forth in the policy. It also pays all expenses in defense of any lawsuit attacking the title as insured.
Title Insurance protects you against losses due to defects in the title of the property or expenses in legal defense.
Your ownership is authenticated and will be promptly defended against any claims, in court if necessary at no cost to you, whether a claim is valid or not.
A title insurance policy will protect you and your heirs as long as you have an interest in the property.
If a valid claim is made against your title as covered by your policy, the title insurer protects you by bearing the cost of settling the claim should it prove valid, in order to protect your title and keep you in possession of your property.
- What does title insurance cover?
Title Insurance protects the policy holder by covering the costs of defending lawsuits challenging the insured title. The title company will resolve the problems or pay the losses incurred by the policy holder up to the amount of the policy.
- What are the different kinds of title Insurance policies?
The Owners Policy: This is the policy that protects the home purchaser against the many possibilities of loss due to title defects.
The Mortgagee's Policy: A lender, bank , or other financial institution, will most likely require a title policy for its own protections. This policy protects only the lender and is referred to as a Lenders policy.
A Leasehold Policy: This is a policy primarily for long term leases by industrial and commercial organizations.
- What is the cost for title Insurance?
The premium is a one-time payment. The amounts are set by the Insurance commission where the property is located. Premiums vary from state to state. The value of an owner's policy is usually the sale price. It does not cover increases in property values unless an "increased value endorsement" is purchased.
- What is title search?
Before issuing a policy, the title company will check for defects in the title to the property by examining a detailed description of the public records. The search will confirm the owner's right to transfer ownership and discover any legal encumbrances or burdens on the property. The title search is conducted by a professional licensed title examiner. A title insurance commitment is issued outlining the items to be satisfied prior to closing.
- How long does title insurance last?
An owner's policy is a one time investment and remains effective as long as the owner or their heirs own the property, or remain liable for any warranties to the title when it is sold. If a title is transferred, you should keep the title policy. An owner's policy cannot be transferred to a new owner when the property is sold. A new owner must buy a new owner's policy. Title insurance premiums are based on the contract price of your home. The rates are set by the Insurance Department of the State of Florida and are the lowest allowable rates by law. Check out our rates page for more information.
- If the note is only in my name, why does my spouse have to sign the mortgage?
This is a Florida requirement. If the property is the homestead residence of the married couple, then it is necessary for your spouse to sign the mortgage acknowledging the property is being encumbered by a mortgage note. The spouse is not signing in the capacity of a co-borrower, but as an interested party in the property.
- What do I need to do before closing?
Contact your lender and start the loan process
Order inspections as per the contract
Purchase hazard/homeowner's and flood, if applicable, insurance policy/ies and pre-pay one year's premium
Survey of the property (not applicable to condominiums)
Obtain Condominium or Homeowners Association approval, if applicable
All inspections and repairs to be completed, in most cases.
- What do I need to bring to closing?
A valid driver's license, passport or Government issued identification Social Security Card,
Condominium Approval, if applicable
Local Cashier's check for the cash to close payable to Live Oak Title, LLC or wire transfer 24 hours prior to closing for mailaway closings If the property is the homestead residence, then all parties on title must be present at closing.
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