Florida Title Insurance
Understanding Florida Real Estate Title Insurance and Rates
What is the definition of title insurance? Florida title insurance is a mysterious fee to most buyers in a real estate purchase, but is an important part of any Florida real estate purchase or refinance. Real estate title insurance, unlike most types of insurance, insures the property title for the time period extending backward from a point in time rather than forward. This means that when a buyer purchases a piece of Florida real estate, a Florida title insurance policy insures or otherwise guarantees that the buyer is protected if a defect in the property title is discovered. Property defect examples may include, but are not limited to, any the following situations:
- 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 actually 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
These examples are only a few of the issues which can appear and affect the title of property. There are many more potential problems, including issues involving real estate developers, condominium conversions, permit liens, utility liens, survey errors or omissions, water rights and access, docks, condominium association mortgages, foreclosure liens and filings, and mortgage fraud. Lenders typically require a mortgagee title insurance policy to provide a guarantee of the quality of their collateral. Always choose your own real estate title insurance agent to guarantee against any conflict of interest. Problems can arise when a title insurance company is owned by the mortgage broker or lender.
Florida title insurance rates are set by the Florida department of insurance. A Florida title insurance owner’s policy and a Florida title insurance mortgagee policy are generally issued simultaneously, with the policy of lesser value having only a nominal premium rate. The scale of Florida title insurance rate premiums is as follows based on the insurance amount:
- Up to $100,000.00 a rate of $5.57 per $1,000.00 of insurance;
- Over $100,000.00 up to $1 Million a rate of $5.00 per $1,000.00 of insurance;
- Over $1 Million up to $5 Million, a rate of $2.50 per $1,000.00 of insurance;
- Over $5 Million up to $10 Million, a rate of $2.25 per $1,000.00 of insurance;
- Over $10 Million, a rate of 2.00 per $1,000.00 of insurance.
Most Lenders also require additional Florida title insurance endorsements, which increase the protection for the lender, and have additional Florida title insurance rates.
Miami Beach Title Insurance Company is owned by a Florida real estate attorney. The attorney and staff at Miami Beach Florida Title Insurance Company, live in Florida and own Florida residential and commercial real estate ourselves. Our goal as a law firm and title insurance company is to protect you, our client, during your real estate transactions. We offer great rates and a comfortable atmosphere where out-of-state or local clients are welcome to call or drop by the office.
If you would like to discuss a real estate question please call 786-276-9900 or contact our office today for a consultation.