Title Insurance FAQ
What is a title?
What is title insurance?
Are there different types of insurance policies?
What is the difference between an owner's policy and a lender's policy?
The lender’s policy protects the financial institution providing the mortgage in the event that an issue occurs with the title of the property.
Each types of policies protect against the same issues, but for different parties involved. It is advisable that both an owner’s policy and lender’s policy are obtained during the purchasing process.
What is a title search?
What kinds of problems can a title search reveal?
Are there any problems that a title search cannot reveal?
Why is transferring the title to real estate different from transferring the title to other items, such as a car?
What are the responsibilities of the Closing Agent?
What are the pre-closing procedures?
After this first step is complete, the Closing Agent will prepare the document called a Title Commitment. This document discloses all information about the title, including any defects, current owner, and anything that must be excluded from coverage. This document confirms that all requirements have been met to obtain a title insurance policy, which is typically issued within 45-60 days of closing.
Depending on location of the property, the Closing Agent will likely order a Boundary Survey and Elevation Certificate, if applicable. A Survey is required on all transaction where a Lender is involved. Experts recommend obtaining a survey for all transactions whether or not they are required. A Survey is a sketch of the boundary lines of the property, which also shows any structures on the property such as power lines, sheds, fences, etc. The Elevation Certificate reflects the flood zone and elevation of the property. An Elevation Certificate is required for the homeowner to obtain flood insurance.
What happens at the Closing Table?
The Closing Agent will conduct the closing, explain all documents to the buyer and seller, and notarize the documents. During this roughly 30 minute process, the seller’s documents are also signed. Once all paperwork has been completed, the Closing agent will typically send any required documents to the Lender for authorization. This is called a Lender Review to ensure that all documents meet the requirements of the Lender. This happens while the buyer is still at the closing table, typically taking around 15 minutes to complete.
Lastly, the Closing Agent will oversee the transfer of keys and disbursement of funds to all parties. As a buyer, keep in mind that it is your real estate agent’s ultimate responsibility to ensure that keys are available at the closing table.
What happens after the closing?
1. The original and notarized loan package will be returned to the Lender.
2. Any funds or checks that were not disbursed at the closing table will be expended.
3. Documents are recorded in official records of the corresponding county (i.e. Warranty Deed, Mortgage, etc.).
4. Title insurance policies are issued.
Contact our Title Insurance Professionals
Do you have additional questions about title insurance? Contact our Florida office today where our team of professionals are available to assist during your transaction. Contact South Florida Title Insurers at (561) 804-7677.