Questions And Answers
A title search looks for mortgage, judgments and liens that are appearing on public records against a specific real estate property.
When you are buying any real estate, including a house, land or commercial property in Florida, you buy everything that comes with it, including the building structure or house, improvements such as a fence, additions, landscaping, and even the well and sewer system. When you buy a condominium, you buy into the interest in the building and you have a share in the common areas along with owning your own particular unit. When a seller is transferring ownership of property to another person the seller needs to ensure that the buyer is getting the property free of encumbrances and liens and expects to receive clear title to the property he or she is purchasing. A title search will reveal problems that the buyer will need to be made aware of including but not limited to:
Fraud & forgery
Incorrectly executed deeds by minors, corporations, heirs or non-entities
The seller has fraudulently sold the property to another recent buyer
A prior seller has fraudulently sold the property to more than one buyer
The seller purchased the property while committing mortgage fraud
The boundaries may be incorrect, and part of the property may be owned by an adjacent neighboring property owner
There may be an easement burdening the property which limits the uses and thereby decreases the value of the property
Structures on the property may encroach onto valid easements or an adjacent property
There may be an older unrecorded deed transferring the property which is now recorded
The seller or prior seller may have outstanding personal judgments which could attach to the property
Foreclosure sale issues
You would need to contact Property Management company and inquire about their procedures. The fee associated with this service is usually $150-$450 per “estoppel letter” but fee and turnaround time varies by association.
An escrow agent holds funds “in trust” for a transaction. The funds can be held for a buyer, a seller or a lender. Escrow agents are required to be bonded and insured in most states. Verify your escrow agent’s licensing credentials in your state before giving them any funds.
Buyers and sellers each have separate closing costs related to their transaction. The contract language customarily determines who pays for what costs such as title insurance, lien search, title search and deed taxes on the sale. Buyers customarily pay for their loan related expenses except for some VA or FHA loans. Different counties within the state usually have established “customs” for cost allocations, but buyers and sellers should not assume anything and carefully read the contract.
Settlement charges are all the closing costs you will have for your closing and will be itemized on the Closing Disclosure early in the loan process and then again three days before closing as per law.
A Truth-in-Lending Disclosure Statement provides information about the costs of your credit. Effective October 3, 2015, for most kinds of mortgage loans a new form called the Loan Estimate replaces the initial Truth-in-Lending disclosure, and a Closing Disclosure replaces the final Truth-in-Lending disclosure.
When you purchase your home, how can you be sure that there are no problems with the home’s title and that the seller really owns the property? Problems with the title can limit your use and enjoyment of the property, as well as bring financial loss. A title search and the one-time expense of title insurance prevents these issues.
Not normally. Any licensed title agency is permitted to close and issue Florida Title insurance in the State of Florida
The title due diligence takes about an average of 7-10 business days. However, closings can be expedited if all parties cooperate. The average closing takes about 30-45 calendar days due to loan approval timelines. Your contract will specify your closing deadlines.
A Closing Disclosure (also known as a “CD”) is a standard, government-regulated form that was implemented on 10/1/15 and is used to explain to buyers, borrowers, and sellers all the financial details of their transaction. A CD itemizes every single financial item in a transaction such as sales price, loan amount, seller credits, prorated property taxes, realtor commission, loan fees, points, closing costs, title insurance fees, HOA dues paid, etc. The CD is strictly regulated by the Federal Consumer Financial Protection Bureau (CFPB).
A survey establishes the property boundaries (shape and size) of the property you intend to purchase, it reveals encroachments and easements on the property (if any exist) and it also provides information on the access to your property (i.e. driveway). A survey is certified to the buyer, the title company, and the lender (when applicable). If you waive your right to a survey (option for cash buyers only), you have no recourse against the title insurance for survey matters.
The borrower/owner does not actually need title insurance, but the lender who is giving the new loan, does want their loan secured through what is known as “lender’s title insurance.” A borrower who already paid for an Owner’s Title Insurance Policy when they purchased the property is entitled by law to what is commonly referred to as a “reissue rate” or “reissue credit.” We at J&E Title Services offer this, if the borrower has their previous policy.
About 30-60 days after closing depending on how long the county’s recording clerk takes to register the documents. FIRPTA stands for the Foreign Investment in Real Property Tax Act. Foreign national sellers have specific requirements that apply to them when selling US real property. If a seller is not a USA citizen or resident, FIRPTA requires a prepayment to the Internal Revenue Service of a withholding tax on the real property. The amount required to be collected at closing is calculated as a percentage. Generally, 15% of the gross sales price must be withheld and remitted to the Internal Revenue Service (IRS) within 21 days of closing unless certain conditions apply.