Title Insurance:  Is a guarantee against any defects or encumbrances in title to real estate to which the title insurance company has not taken an exception.   

Owner’s Policy:  Protects the property owner, up to the policy amount, for any loss sustained by reason of defective title.  If the owner sells the property, the policy is not transferable to the future owners. 

Lender’s Policy:  Protects the lender only up to the amount owed on the mortgage loan for any loss sustained by reason of defective title.  If the mortgagee sells the mortgage to another party, the mortgagee’s policy is transferable to the new owner of the mortgage.   

Title Search/Exam:   It is a search of the public records to show who has legal ownership to the property.  It also shows any outstanding mortgages, liens, or unpaid taxes against the property and/or owners. 

Why must you have it:  Documents in the past may have been prepared and executed without the assistance of a professional, and once they are recorded in the public records, the document may affect the validity of the title to the property.  A licensed title agent is trained and experienced to look at each document to determine that the proper parties executed the document and that it was executed according to Florida Statutes.  Most Lenders/Banks require it as a condition to approve the mortgage loan.

Insurance Fees Determined:  The State of Florida regulates the minimum that can be charged.  Most companies offer “Card Rate” which is the minimum plus a nominal charge.  This is negotiable and depends on whether or not you have the existing Owner’s Policy to provide the title company.  This may help to reduce your expenses.