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 What is a HUD?
The settlement statement is also referred to as a HUD (U.S. Department of Housing and Urban Development.). It lists all charges in connection with the real estate transaction; including real estate commission, lender, mortgage broker, and title charges. The HUD also lists miscellaneous charges such as homeowner’s association assessment and transfer fees, home inspection, home warranty, survey fees, etc. The HUD will show the pro-ration of taxes and homeowners association dues and any payoffs required on behalf of the seller to clear the title.
What is Title Insurance?
There are two types of title insurance policies - one that protects the lender (Loan Policy), and one that protects the homeowner (Owners Policy). A loan policy is issued for the amount of the mortgage loan, and assures the lender of the enforceability of its lien. This policy expires when the loan is paid off. It does not cover the homebuyer. An Owner's Policy is typically issued in the amount of the real estate sale price, and remains in effect for as long as the owner, or his(her) heirs, retain an interest in the property.
Who Pays for the Owner's Title Insurance Policy?
Who pays for the Owner's policy is a matter of local custom. In Florida the seller usually purchases the Owner's Policy for the buyer, in effect telling them that they do indeed own the property, and that the title is clear.
Why should I buy title insurance if claims are rare?
Claims are rare precisely because of the search, examination, and curative work performed by title professionals before the property changes hands. This curative work represents approximately 80% of the premium. One out of every three title searches reveals a problem that must be corrected by the title company before the sale can close. Only about 20% of the premium goes to the actual title insurance policy, a significant portion of which is put into reserves for claims that could occur 10 or 20 years in the future.
What happens if the title to my property is challenged?
Just notify your title company, and they will defend your title. If it goes to court, all expenses will be borne by the title policy company.
Should I shop around for the best deal on title insurance?
The one time policy premium is directly related to the value of the property. The rates are strictly regulated by the State of Florida. Tha actual cost of a title policy would be the same from all title companies. The differences in cost would come into play for other factors, such as closing costs, search fees, Overnight mail,etc.
What should I bring with me to closing?
All parties involved in the transaction should bring:
- A valid drivers license or state issued photo ID. A valid passport would be acceptable for international clients.
- A cashiers check for the amount needed to close.
- Proof of any liens, judgments, etc that were paid prior to closing.
- A copy of the purchase contract.
If I can't come to the closing will Florida Title & Abstract be able to close my deal?
Yes. This is never a problem. We'll come to you! With two satellite offices, and several mobile closers, we can accommodate you almost anywhere in the State of Florida. |
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