Addressing Client Concerns
Three common concerns clients have before using our title insurance services are cost, escrow accounts, and remote closing capabilities. We address these concerns directly:
- Cost: We provide transparent and detailed pricing information.
- Escrow Accounts: We offer secure escrow services through multiple reputable banks, extending closing times beyond standard banking hours for greater flexibility.
- Remote Closings: We handle completely digital, long-distance closings.
Title Insurance Explained
The cost of title insurance is tied to the sale price of the property and calculated as a percentage. Using a closing calculator, the Florida Title Insurance Rate is typically $5.75 per thousand dollars for properties under one million dollars. For properties over one million, the rate is $5.00 per thousand. Additional endorsements or insurance may be required by lenders during financing. For more information on fees and risks in real estate transactions, see real estate transactions fees risks and title insurance.
The title insurance policy protects buyers from potential claims to the property from third parties. For instance, if a previous owner had undisclosed heirs who subsequently claim ownership, the title insurance policy would protect the current owner from such a claim.
Title Insurance Coverage
Title insurance isn’t just about protecting against unforeseen ownership claims. It also assures the buyer that the seller won’t back out of the deal. This ensures peace of mind throughout the transaction and protects your investment. The additional endorsements available on the policy can further customize the coverage to meet specific needs. For a comprehensive guide to title insurance, see understanding and obtaining title insurance a comprehensive guide.
Understanding Title Insurance: A Comprehensive Guide
Additional endorsements are crucial for mortgage insurance. These include endorsements for adjustable-rate mortgages, private loans, manufactured or prefabricated homes, and environmental liens. An environmental lien indicates the potential presence of hazardous materials, triggering additional insurance. A survey endorsement covers potential issues revealed during a property survey. These are additional policies, and creating them correctly requires expert guidance. A poorly created policy is useless. To sell title insurance effectively, you need expert advice from a licensed professional; you can’t simply buy it from anyone.
At First Aid Group, we are licensed to sell title insurance. Our licensing includes the Iro Agents license. When working with banks, it’s important to understand that the insurance is sold by the insurance company, not the bank. First Aid Group works with multiple insurers, not just one. We have partnerships with Fidelity National Title, UWM National Title, Title Resources, and Westcore.
Selecting the best insurer depends on several factors. Fidelity National Title is a major player in the eastern US, while Westcore dominates the west. WFG is a regional insurer operating in 8-9 states, and Title Resources is smaller. While the core offerings are similar, insurers have different requirements. Larger insurers generally offer greater stability. For expensive properties, we prioritize insurers capable of supporting clients should problems arise.
To create a title, we require several documents: the purchase contract, proof of down payment, buyer and seller IDs, and verification of correct tax records under the seller’s name. A title search is then conducted. This is a complex document, but our role isn’t creating it; we clean it up to meet the insurer’s requirements.
A title search, as you can see (referencing a visual example), begins with our company name and client reference. This multi-page document (this example has nine pages) identifies the insured party and the insurance amount (in this case, $1,740,000). Section B1 details the requirements for title cleanup – the documentation we must locate and verify.
A “clean title” means it’s free of liens and past debts from previous owners. Outstanding taxes prevent buying or selling. We either ensure the seller pays taxes or withhold funds to pay them at closing. We also address any past debts or additional liens (e.g., for repairs).
Other components of the title search include the survey, homeowner association approval, estoppel information, and the municipal search (confirming payments and compliance with municipal regulations). These ensure everything is properly organized and paid.
Disclaimer:
All the information provided in this article is for informational and reference purposes only. First Title Group is not responsible for any decisions readers may make. Each situation is unique, and we recommend seeking our advice before making important decisions regarding title insurance. Contact us via WhatsApp at +1(786) 624 9154 or send an email to info@firsttitlegroup.com.