In a Florida real estate transaction, the title company generally acts as the combined agent of the insurance company, the buyer, the seller, the mortgage lender, and any other parties involved in the transaction. Essentially, they oversee the incredible number of details involved in buying and selling real estate and are responsible for the closing process from start to finish.
With that said, let’s look a little closer at the specific duties of a title company when it comes to real estate transactions in Florida.
Research the Property’s Title History
When buying a home in Florida, it is crucial to make sure its title is clear – meaning it has no defects that could potentially affect your ownership rights in the future. The only way to do so is to conduct a thorough title search to reveal any hidden title issues.
The title company does this by reviewing public records to inform all interested parties on the status and condition of the property’s title, as well as information related to any type of legal action involving the property, such as a foreclosure. Typically, they’re looking for “clouds,” or defects to the deed such as property liens or unpaid taxes. Information is presented in the form of a preliminary title report, which serves as a commitment for title insurance.
Issue Title Insurance
Protecting the title of your home is critical. Without a strong Florida title insurance policy issued by a reliable title company, if someone files an ownership claim even years after closing, you could end up losing your home. Oftentimes, the title company will issue title insurance policies as an independent agent on behalf of a title insurance company. The title company simply facilitates the paperwork for issuing the policy, while the actual insurance premium goes to an underwriting company, which bears the risk of any loss under the policy.
Facilitate the Closing Process
Title agents do many things in order to ensure closings go smoothly. In essence, the job of a Florida title agent is to find the most efficient route towards the signing of the final closing documents. At the closing, the title company will gather signatures on all closing documents and also receive and distribute any payments related to the transaction.
Act as Escrow Officer
Additionally, the title agency commonly acts as an escrow officer in connection with a real estate deal. In this role, the title agency holds any money or documents as part of the transaction. Any money or documents held, such as a signed deed to the property, are only released according to the written instructions of the buyer and seller.
File and Record Paperwork
Following the closing, after the parties have signed all necessary documents, the title company will record the deed and mortgage as well as any additional documents that need to be recorded in the county land records office.Our innovative approach, cutting edge technology, relaxed culture, and outstanding customer service set us apart. Contact us today for your title needs.