Title Insurance
Frequently Asked Questions

Whenever ownership of a property is transferred from one person to another, a record of the transaction is made and kept on file in public archives. This is known as the transfer of title. Similarly, records are also made of any events that could affect the ownership of a property, such as liens or levies.

When you go to buy a new home, a title company will search these records to make sure that the chain of ownership for the property is clear and that it can be sold without issue. If there are any problems, such as those liens or levies, the title company will work to resolve them before the deal can be brought to closing.

Yet, even the most experienced title professionals can miss things or make mistakes. If that's the case with your transaction, a title insurance policy can help protect your claim to ownership of the home and can shield you financially from having to bear the burden of any discrepancies that may arise.

A title company ensures that the title to a piece of real estate is legitimate and then issues title insurance for that property. Title Insurance protects the lender and/or owner against lawsuits or claims against the property that result from disputes over the title.

Acts as the escrow agent, holding deposits and other payments until the transaction is completed. Issues title insurance for the buyer and lender, protecting them against any claims or issues with the property. Acts as closing agent, sends the packet back to the mortgage company, files the mortgage and deed, and uploads the documents for the buyers and sellers to access online. The final closing for a home is typically held at the office of the title company.

Standard title insurance policies protect against forgery or impersonation, a mistake on the part of the person doing the title search, an undisclosed mortgage or lien, an undisclosed easement or use restriction, an inadequate survey description, and deeds not previously recorded and any hidden problems.  An extended policy might also cover issues such as off-record claims of adverse possession, off-record liens, an incorrect survey, or pre-existing violations of subdivision laws or zoning ordinances.

For most Americans, our home is the single largest financial investment we ever make.  More importantly, it's where we raise our families, share time with friends and live out our lives. While ownership of our home may seem very straightforward, our rights to enjoy our property aren't always as clear.  There are literally dozens of ways in which your title to - and your ownership of- the property can be jeopardized.  The title insurance industry and the policies it provides exist to ensure that title issues don't affect your home ownership rights.

If the property that is being sold is improved property and the seller has owned this property three years or less and has a copy of their owner's policy, then the seller will be given re-issue credit up to the amount of his/her policy.  If the property that is being sold is unimproved property, or if the property is being refinanced this is no time limit, this credit will be given based on the value of the current owner's policy.

The Re-Issue Rates for owners or mortgage policies are as follows:

• $3.30 per $1,000.00 of value for the first $100,000
• $3.00 per $1,000.00 of value thereafter for purchase prices up to $1,000,000.00

Florida’s Save Our Homes (SOH) provision allows you to transfer all or a significant portion of your tax benefit, up to $500,000, from a Florida home with a homestead exemption to a new home within the state of Florida that qualifies for a homestead exemption. This is referred to as “portability.”

See https://www.ocpafl.org/Content/Dynamic/File.dynamic/FID/149813/ for more information