Title Insurance

What is Title?

Title is the foundation of ownership to real property and the basis of your right to possess and use that property. Title to real property is most commonly acquired by deed.

Why do I need title insurance?

For peace of mind and because institutional lenders require it for all loans. Title insurance is a homeowner’s only defense to claims against rightful ownership or encumbrances on title. The owner’s insurance policy protects the investment or equity in the property up to the face amount of the property. If a dispute ever arises against the title to a particular parcel of property, Global America Title Services will indemnify the owner for lawful claims it has insured against.

How does title insurance work?

Unlike most state regulated insurance premiums, risk is never a factor. In fact a title insurance policy will not be issued unless Global America Title Services has eliminated every possible risk it has knowledge of. Title insurance premiums are promulgated by the State of Florida based upon either purchase price or loan amount depending on the type of policy required. Once Global America Title Services has conducted a title examination it will promptly issue a title insurance commitment exhibiting all encumbrances on title which must be cured before or at the time of closing and any exceptions to title that will be transferred with the property. Once a commitment has been issued Global America Title Services will work with its clients to clear title so marketable title can be transferred and the transaction can be closed. A title insurance policy will then be issued at closing or once all the requisite documents are back from being recorded in the public records.

What kind of a policy do I need?

There are two different types of policies – a loan or mortgagee policy protects the lender’s interest in the property as security for the balance of the mortgage. An owner’s policy protects the buyer’s equity in the real property up to the face amount of the policy. Global America Title Services’s simultaneous issue program allows for our company to issue both policies at the same time.

How much does title insurance cost?

Title insurance offers large benefits for small costs. Premiums in Florida are promulgated by the state, but generally cost less than one percent of the purchase price of the property. Unlike other state regulated insurance premiums, title insurance is paid one time only and included in your settlement closing costs.

Who chooses the title company?

Depending on county custom or how the contract reads, either the buyer or seller may have the right to pick their title company and the responsibility to pay for title costs. All real estate purchase/sale contracts are completely negotiable. However, local custom usually dictates who will choose and ultimately pay for title services. In Miami-Dade and Broward County, the buyer has the right to choose what title company will handle the closing of the transaction. In Palm Beach County, the seller pays for title services.

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