This is a list of
Frequently Asked
Questions - to go directly to an answer, click on the
question below.
How does Title Insurance
differ from other types of insurance?
Why do I need Title Insurance?
How long does my coverage last?
How do I obtain Title Insurance?
What is an Owner’s Policy and why do I need one?
What are some hidden risks protected under a
Title Insurance Policy?
What is an Endorsement and why do I have to pay
for it?
What should I know about property taxes?
How is title
held or going to be held?
What is Power of Attorney?
Can I
write a personal check at closing?
Why should I select FAST Co. ?
How does Title Insurance
differ from other types of insurance?
Title insurance is different from other
types of insurance in that it protects you, the insured, from a loss that may
occur from matters or faults from the past. Other types of insurance such as
auto, life or health cover you against losses that may occur in the future.
Title insurance does not protect against any future faults.
Another difference with title insurance is that the insured pays a one-time premium instead of ongoing premiums as with other types of insurance.
Why do I need Title
Insurance?
Owning real estate is one of the most precious values of freedom. When you buy a home, you want to be sure the property is properly conveyed and free from unexpected adverse interests. Once title insurance is purchased, it remains in effect for as long as you own your home. Title insurance adds security and peace of mind to home ownership.
How long does my coverage
last?
Once purchased, title insurance remains in effect for as long as you own your property.
How do I obtain Title
Insurance?
Let the title company, attorney or agent handling the closing of your property know that you want to purchase an Owner's Title Insurance Policy. When choosing a title insurer, you should look for a company with experience, as well as the financial strength to protect you.
The Insurance Commissioner approves the premiums for title
insurance policies. It is customary in Charlotte County, Florida for the seller to pay
for the buyer/purchaser standard coverage policy. However, this varies from
county to county. The premium is only paid
once. The cost depends upon the purchase price of the property, and your
policy amount must be equal to the purchase price.
What is an
Owner’s Policy and why do I need one?
An Owner’s Policy protects you, the purchaser, against a loss that may occur from a fault in your ownership or interest you have in the property. You should protect the equity in your new home with a title policy. It offers:
 | Protection from financial loss due to covered claims that may be asserted against the title to your home up to the face amount of the title policy. |
| Payment of legal costs if the title insurer has to defend your title against a covered claim. |
| Payment of successful claims against the title to your home covered by the policy up to the face amount of the policy. |
What are some hidden risks
protected under a Title Insurance Policy?
The following matters are examples of why you need a
Title Insurance policy. Remember that the best title examination or search
cannot protect your equity and home from matters not appearing in the public
records. However, a Title Insurance policy* can protect you from:
| Documents executed under false, revoked or expired powers of attorney |
| False impersonation of the true landowner |
| Undisclosed heirs |
| Improperly recorded legal documents |
| Prescriptive rights in another – not appearing of record and not disclosed by survey |
| Failure to include necessary parties to certain judicial proceedings |
| Defective acknowledgements due to improper or expired notarization |
| Corporate franchise taxes as liens on corporate real estate assets |
| Gaps in the chain of title |
| Mistakes and omissions resulting in improper abstracting |
| Forged deeds, mortgages, wills, releases of mortgages and other instruments |
| Deeds by minors |
| Deeds which appear absolute, but, but which are held to be equitable mortgages |
| Conveyances by an heir, devisee or survivor of a joint estate who attempts to attain title be ill-gotten means |
| Inadequate legal descriptions |
| Conveyances by undisclosed divorced spouses |
| Duress in execution of wills, deeds and instruments conveying or establishing title |
| Issues involving delivery of conveyance instruments |
| Deeds and wills by persons lacking legal capacity |
| State inheritance and gift tax liens |
| Errors in tax records |
| Demolition and substandard building liens |
| Administration of estates and probate of wills of missing persons who are presumed deceased |
| Issues of rightful possession of land |
| Issues concerning the rightful conveyances by corporate entities |
| Deeds and mortgages by foreigners who may lack legal capacity to hold title |
| Legal capacity of foreign personal representatives and trustees |
| Issues involving improper marital status |
| Improper modification of documents |
| Rights of divorced parties |
| Conveyances in violation of public policy |
| Misinterpretation of wills and ancillary instruments |
| Deeds by persons falsely representing their marital status |
| Claims by creditors of decedent against property improperly conveyed by heirs and devisees |
| Issues concerning unlawful takings by eminent domain or condemnation |
| Special tax assessments |
| Real estate homestead exceptions |
| Forfeitures of real property due to criminal acts |
| Issues concerning adoption of children |
| Conveyances and proceedings affecting rights of military personnel protected by the Soldiers’ and Sailors’ Civil Relief Act |
| Issues concerning interests noted in financial statements filed under Uniform Commercial Code |
| Interests arising by deeds of fictitious parties |
| Adverse possession |
| Lack of jurisdiction or competency of persons in judicial proceedings |
| Community property issues |
| Utility easements |
| False affidavits of death or heirship |
| Interstate estates |
| Probate matters |
| Federal estate and gift tax liens |
* Subject
to certain limitations set forth in the policy
What
is an Endorsement and why do I have to pay for it?
An endorsement, which is usually required by the lender, is further coverage for special requirements in addition to our standard policy’s coverage.
|
Form 126.1 (Comprehensive Homeowner's Protective
Endorsement):Fee: No charge. Insure's against loss if the residential
structure encroaches onto the adjacent property or onto any subsurface
easements.
|
|
Form 100 (Comprehensive Lender's Endorsement):
Comprehensive coverage for the lender insuring against violation of
covenants, encroachments of the main dwelling and association liens
affecting priority of the loan.
|
|
Form 100.30 (Mineral): Coverage insuring against damage to
existing improvements resulting from the exercise of the right to remove
minerals from the surface.
|
|
Form 103.1 (Easement): Coverage insuring against loss or
damage as the result of use or maintenance of the easement.
|
|
Form (Condominium): Coverage insuring the creation of the
condominium estate is in accordance with the laws. That the covenants,
conditions and restrictions are not violated, that a homeowner's
assessment lien is subordinate to the lender's Deed of Trust, and also
protection against common area encroachment.
|
|
Form (P.U.D.): Coverage insuring against loss or damage due
to violation of restrictive covenants, forfeiture or reversion provisions
of restrictive covenants, assessments gaining priority over and insured
mortgage, compelled removal of improvements due to encroachments.
|
|
Form 8.1 (Environmental Protection): Coverage insuring
that no environmental lien has been filed either in the Clerk and
Recorder's records or filed in the U.S. District Court.
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Mechanical lien protection
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Survey protection
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What
should I know about property taxes?
Property taxes can be a confusing topic. Moreover, property taxes are regulated at the county level and, therefore, different in each county. More information regarding property taxes is available through the Florida Department of Revenue website:
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How
is title held or going to be held?
Remember, if you are selling your property and you hold the real estate in an entity name, there may be additional requirements that must be complied with before closing. Similarly, if you are acquiring real estate and wish to hold title in an entity name, there also may be additional requirements that must be complied with before closing. Please contact FAST Co. with any questions at 941-743-7041.
What
is Power of Attorney?
A “power of attorney” is a written instrument by which a
person (the “principal”) appoints another agent (the “attorney in fact”) and
confers upon the agent the power to perform certain specified acts on behalf
of the principal.
A Power of Attorney:
| Creates an agency relationship, with the giver of the power of attorney remaining the legal owner of any property involved |
| Must be approved by Title Guaranty Company |
Can I write a personal check at closing?
All funds at closing must be in the form of a
cashier's check, certified check or wire transfer. Florida is a
"good fund" state, therefore as an escrow agent, FAST Co. can only
accept "good funds" when closing a transaction. "Good funds" means the check
is drawn on the bank's account, not on an individual's account.
Why should I select FAST Co.?
For over 17 years the dedication of the team at Florida Abstract & Security Title Corp. have strengthened the combined knowledge and experience in real estate, title insurance, mortgage documentation, closing techniques, and services, developing a clear understanding of the industry and the individuals that will benefit from services provided by our company.
FAST Co. has over 160 years combined experience in Real Estate transactions throughout the state of Florida. Our expertise and attention to detail has earned us an exceptional reputation and dedicated following.
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