When is the title insurance premium paid?

Title insurance premiums are paid one time at the closing.  There are no continuing premium payments like other types of insurance.

Who should purchase title insurance?

Property owners and lenders both need title insurance.  Title companies usually issue two types of title insurance policies: an owner’s policy, which is usually based on the properties purchase price, and insures the buyer’s interest in the property, and a lender’s policy, which insures the lender’s interest in the property, and insures that the lender’s security interest has priority over claims others may have to the property.

Who pays the premiums for title insurance policies?

It depends on which county that the property is located in.  In Lee County, it is the seller that pays for title insurance, whereas in Collier County it is the buyer that pays for it.

In a purchase, sale or refinance who chooses which title company to use?

The person paying for the title insurance always has the legal right to choose the company of their choice.  Realtors, mortgage brokers and builders may try and tell you otherwise, but remember, you are the person paying for the title insurance therefore its your choice not theirs.

Why is transferring real estate title different from a car title?

Because real estate is permanent and can have many owners over the years, various rights in land may have been acquired by others (such as mineral, air, or utility rights) by the time you take possession of the property, even if the land has never been built on before.  In order to transfer a clear title to a piece of real estate, it is first necessary to determine whether any rights are outstanding.

What items should I bring to the closing?

The buyer needs to bring the following: a cashier’s check made payable to Global Title Company (if the buyer is paying for any part of the property themselves), proof of a homeowners insurance policy, photo identification (driver’s license, passport or state ID card).

The seller needs to bring the following: photo identification (driver’s license, passport or state ID card), all keys, garage door and gate openers.

What services are provided by the title company?

We obtain the title search and examination, surveys, home document processing and preparation, issue title policies, get mortgage and lien payoffs, pay property taxes, record documents with the clerk of the court, receive and disburse escrow funds, and do a quality review of all documents.  We also, coordinate all of these items to ensure a trouble free closing.

If I am purchasing a new home, do I need title insurance?

Yes.  Because even undeveloped land can have many things happen to it over the years that could negatively affect the property, such as liens, judgments, and easements, to name a few.

If the previous owner already has title insurance, why do I need it?

Because the previous owner’s title insurance only covers them and not you the buyer.  Also, many things could have happened during the time that the seller owned the property that could negatively affect the property.

3920 Via Del Rey

Suite 1

Bonita Springs, FL 34134

 

Phone: (239) 596-1330

Toll Free: 800-699-3079

Fax: (239) 596-1332

L.Dargai@globaltitlecompany.com

Yes, there are hidden hazards that even the most detailed title search may never reveal.  Such as, the previous owner could have incorrectly stated his marital status, resulting in a possible claim by his legal spouse.  Other hidden hazards could include forgery or fraud, clerical errors in the records and confusion due to similar or identical names.  These defects in title could arise after the purchase of the property.  By having title insurance, you have insured yourself with protection against these types of issues.

A title search is a detailed examination of all recorded documents affecting a specific piece of property to determine the present condition of the title.  These records include deeds, liens, judgments, court records and many other documents. The purpose of the search is to verify the seller’s right to transfer ownership and to discover any issues that may create defects in the title.

Title Insurance affords protection from past events which may or may not be a part of the public records, but that can adversely affect a new owner’s interest in the property being sold to them.  Unlike most insurance, for a one time fee, title insurance protects the interest of the property owner against claims up to the dollar amount of the owner’s policy for as long as they own the property.

Frequently Asked Questions

A title is the foundation of property ownership.  It is the owner’s right to possess and use the property.

What is title?

What is title insurance and why do I need it?

What is a title search?

Are there any problems that a title search cannot reveal?

Title insurance premiums are based on the dollar amount of the transaction and the type of coverage provided.

How are title premiums determined?