Title insurance will pay for defending against any lawsuit attacking your title as insured, and will either clear up title problems or pay the insured’s losses, up to the purchase price of the home. For a one-time premium, an owner’s title insurance policy remains in effect as long as you, or your heirs, retain an interest in the property.
What are some examples of “hidden risks”?
- False impersonation of the true owner of the property by the seller or other persons previously in title
- Fraud or forgery on deeds, wills, releases and other documents
- Deeds by minors or persons of unsound mind
- Invalid documents completed by an expired power of attorney
- Invalid deeds delivered after the death of the grantor
- Deeds by supposedly single persons but actually married
- Unpaid property taxes
- Judgments and liens against the seller for unpaid property, estate, inheritance, income or gift taxes
- Claims for unpaid estate inheritance and gift taxes against prior owners of your home
- Unrecorded easements – giving one party the right to enter another party’s property
- Undisclosed descendants or missing heirs of former owners of your home or the land on which it is situated
An attorney performed a title search for me so I don’t need title insurance, right?
An attorney or title company can provide an “abstract of title” by searching the public records; however, this will reveal only obvious defects in title. A title insurance policy protects from “hidden risks” which are title problems that may exist, but cannot be disclosed in a search of the public records.
Which settlement fees are customarily paid by the seller at closing?
- Title search and closing fee*
- Owner’s title insurance policy*
- Real estate sales commission
- Payoff of existing mortgage
- Home warranty (if applicable)
- Taxes prorated to date of closing
- Doc stamps on deed $.70 per $100 based on sales price (Miami-Dade counties $.60 per $100)
- Courier and wire fees, if applicable
Which settlement fees are customarily paid by the buyer at closing?
- Simultaneous issue of lender title policy
- Endorsement charges to lender’s title policy
- Survey
- Termite inspection
- Home inspection
- Taxes prorated to date of closing
- Homeowners association dues and transfer fee (when applicable)
- Condominium approval fees and due (when applicable)
- 1st year homeowners’ insurance and flood insurance (when applicable)
- Recording fees for deed $10.00 first page; $8.50 each additional page and total recording of mortgage at approximately $180
- Doc stamps on mortgage $.35 per $100 based on mortgage amount
- Intangible tax on mortgage $.002 x mortgage amount
- Customary Lender Costs and fees: **(below)
- Prepaid interest – day of closing through the end of the month
- Loan origination and points
- Credit report
- Appraisal
- Tax service
- Underwriting
- Document preparation
- Private Mortgage Insurance (PMI)
- Assignment of mortgage
- Flood certification