| Deeds
& Title Insurance |
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1. TITLE INSURANCE
A title insurance policy provides coverage in the event that the there is a financial loss due to flaws in the grantor's legal title.
- TYPES
- Lender's
Policy:
insures the mortgage lender's interest in the title to the property
(the collateral for their loan).. Most lender's require this type of
policy and charge the cost to the borrower at the loan closing.
- Owner's
Policy:
Insures the owner's interest in the property. The premium for this
policy is usually small if a lender's policy is also being purchased.
- Lender's
Policy:
insures the mortgage lender's interest in the title to the property
(the collateral for their loan).. Most lender's require this type of
policy and charge the cost to the borrower at the loan closing.
- TITLE
INSURANCE
AGENTS
- Most
big law firms
(such as the ones representing lenders) are agents for title insurance
companies and can arrange for coverage. There are also any number of
independent title insurance agents that are not affiliated with law
firms.
- Typically
the title
insurance agent will also act as the closing agent for the purchase of
the property
- Most
big law firms
(such as the ones representing lenders) are agents for title insurance
companies and can arrange for coverage. There are also any number of
independent title insurance agents that are not affiliated with law
firms.
- TITLE
INSURANCE
"COMMITMENT"
- The
commitment is
not the actual insurance policy. The policy is issued after the deed or
mortgage is recorded.
- The
commitment
states that a policy will be issued if certain conditions are met. The
commitment also lists the various types of title flaws that the policy
will not cover. In the standard title policy usually issued in Florida,
these conditions and ex ceptions are listed in Schedules B1 and B2 of
the commitment.
- "Schedule
B1":
Lists that standard exceptions (title flaws that are not being insured
against). Typically these include things such as taxes for the current
year, easements of record, restrictions shown on a plat map, etc.
Schedule B1 exceptions do no t have to be cleared up prior to closing.
- "Schedule
B2":
Lists conditions that must be satisfied prior to the issuance of the
policy. Typically will include things such as clearing up a prior
owner's judgement liens, mortgages, etc.
- "Schedule
B1":
Lists that standard exceptions (title flaws that are not being insured
against). Typically these include things such as taxes for the current
year, easements of record, restrictions shown on a plat map, etc.
Schedule B1 exceptions do no t have to be cleared up prior to closing.
- The
commitment is
not the actual insurance policy. The policy is issued after the deed or
mortgage is recorded.
2. DEEDS
The only way that "title" to real estate can be transferred (other than through the probate process) is by "deed". The requirements of for deeds are spelled out in Florida Statutes.
TYPES OF DEEDS:
- Quitclaim
Deeds:
conveys whatever title (if any) held by the grantor. The grantor makes
no warranties (i.e. promises) about his or her ownership in the
property.
- Warranty
Deeds:
The deed contains warranties (or promises) that the grantor has title.
Grantor can be sued by the grantee if the title turns out not to be
good.
FORMALITIES OF DEED EXECUTION
A deed or
mortgage must have
been executed with certain formalities in order for it to be recorded.
Florida requires the following formalities:
- signing
- "attesting"
(two
witnesses to the grantor's signing must sign the deed or mortgage in
order to assure authenticity)
- acknowledgment
(attestation by a notary public or other public officer)
- delivery
and acceptance
