Title Insurance - Rest Assure Title Services, LLC offers an inclusive title insurance policy for all Real Estate Purchase, Refinance, Construction Loan and Home Equity Line transactions in a professional and courteous manner.
What does "Title" mean? "Title" equates to a combination of all the elements that constitute a legal right to own, possess, use, control, enjoy and dispose of real estate or a right or interest therein. It legitimates your right to "peaceful enjoyment" of the property you own, within restrictions or limitations of use imposed by government authorities. These are the rights of ownership which is recognized and protected by the law. A "Clear Title" means ownership is without blemish or impairment. A "Cloud on Title" indicates that some inconsistency exists which may blemish ownership if not corrected such as an irregularity, possible claim, or encumbrance which, if valid, would adversely affect or impair the title. A "Defect in Title" is indicative of an encumbrance or a more severe problem needing remedy such as a negotiable instrument obtained by fraud. Finally, a "Failure of Title" demonstrates failure to convey ownership from one owner to the next due to the lacking of some elements necessary to transfer "good" title. Back to top
How does Title Pass from one Owner to Another? In most cases, title it is conveyed through a written instrument called the DEED. The person conveying ownership is called a "Grantor" while the person to whom ownership is conveyed is called the "Grantee." Legal title can also pass through a Will, Inheritance, Grant, Operation of Law, Court Decree, etc. Back to top
What is a "Chain of Title"? The “chain of title” is the sequence of historical transfers of title to a property. The "chain" runs from the present owner back to the original owner of the property which is created by repeated buying and selling of the same property. Each time a property is sold and purchased, the new ownership is recorded in county courts public records. Over time, a chain of ownership results from such repeated change of hands. Back to top
What is Title Insurance? Title insurance is an insurance policy issued by an Insurance Underwriter, guaranteeing a buyer's condition of title or ownership of real property. For a one-time-only premium, the named insured and their heirs are protected against title defects, liens and encumbrances existing as of the date of the policy and not specifically excluded from it. In the event of a claim, the title company provides legal defense from the policyholder and pays any covered losses incurred as a result of such claim. Such insurance protects against losses arising from events occurring prior to the date of the policy. Unlike Real Property or Casualty Insurance, where coverage starts on the day a policy is issued, title insurance being Indemnity Insurance causes coverage to stop on the day the policy is issued. Its coverage extends backward in time and guarantees that events prior to your ownership do not result in losses to you. Back to top
How long is a Title Insurance Policy good for? An Owner’s Title Insurance Policy provides protection indefinitely, as long as the current owner or their heirs retain an interest in the property. After the property has passed to your heirs, if any defect prior to the policy should arise, the title insurance company would defend the title for your heirs as it would for you if you were alive. When the current owners sell, however, the same cycle starts all over again, and the new owner's policy ends on the date of issue, covering them from losses arising during previous ownership. Back to top
What types of Title Insurance Policies are available? In general, there are two different types of Title Insurance policies available. The Owner's Title Insurance Policy which offers protection only to the owner and provides assurance that your title company will stand behind you — monetarily and with legal defense if needed — if a covered title problem arises after you buy your home. The Lender's Title Insurance Policy is usually based on the dollar amount of your loan and it only protects the lender's interests in the property should a problem with the title arise. It does not protect the buyer. The policy amount decreases each year and eventually disappears as the loan is paid off. A new owner's policy is not necessary when refinancing an existing property; however the lender will require the purchase of a new lender policy. Back to top
Why do I need a Title Company? Legal statutes provide that the buying and selling of real estate must involve an independent third party to facilitate the performance of escrow, closing and settlement, and the issuance of title policies. The primary role and function of title and escrow services is to make sure that your real estate closing goes smoothly while performing a multitude of services which include : the search on the property, review the title and clear any title defects, identify any inconsistencies, liens, judgments, etc., issue the Commitment To Insure, calculate any prorations for your taxes and/or Homeowner Association, manage the funding through escrow accounting, coordinate all activities between the buyer, seller, realtors, mortgage brokers, lenders etc., conduct the closing, disburse funds, get all required documents recorded to establish your ownership, and finally issue the Title Insurance Policy to both the buyer and lender. Back to top
What are the costs involved in Title Insurance? Title Insurance costs may be broken down to two basic types: Fixed Cost and Variable Cost. Fixed Costs (the largest component) Typically represents the Title Insurance Premium (including any applicable Endorsements), which is based on the purchase/sale price of the property. Additionally, other factors that would be included in this category would be Document Recording Fees, Tax Stamp Fees, Intangible Taxes, City Assessments, etc. These costs are formulated and regulated by the government and remain consistent throughout the state within title insurance companies.
Variable Costs (the smaller component) Typically these fees are represented as service charges which include Search & Settlement Fees, Remote Notary Charges, etc. This is the area where title agencies differentiate themselves. Additionally, they may also include factors such as: applicable Survey Charges, Inspection and Appraisal Charges, Insurance Charges, Loan Cost, etc. Most, if not all of these services, are usually performed and charged by independent service providers. On some occasions, one party will bear responsibility of the total costs; but generally, in most cases the costs are spread between the buyer and seller, although negotiated agreements among them dictate who pays for what.
How do I select the right Title Insurance Company for my transaction? Cost differentiation is one of the many components consumers use in such determination. The least expensive service, however, is not always the best. There are several intangible attributes more difficult to measure such as: the expertise and experience of the facilitators, the professionalism
and courtesy with which a service is provided, the accuracy of the work performed, the office environment, commitment to management by process control, and the word of mouth that ultimately define quality. These are realized through personal experience.
At Rest Assure Title Services, we believe that quality is defined by customer requirements. The satisfaction of those requirements is the customer's right and it’s our pleasure to provide that satisfaction. Despite the heavy regulation within our industry, we have a stellar record with our accuracy and enjoy enormous repeat business! We go out of our way to provide a professional office environment and a staff second to none. The final word of course will be yours.
Who decides on the selection of a Title Agent? We recognize that whether you are a buyer or seller, you have the right to choose your title company. In most real estate transactions the buyers and sellers once let their agents select the title insurance company for them; today's customers are highly educated and experienced in measuring the power of their investment. Some would have you believe that generally the right to choose a title company rests with the party paying for such service, or the lender, mortgage broker or real estate agents. In reality however, that right was, is, and will always remain a negotiated one. Back to top
What is Homestead? The Florida Constitution provides that any Real property, Condominium, Mobile Home etc. which serves as a permanent residence of a Florida Citizen is entitled to homestead benefits and exemptions. Homestead is a legal regime designed to protect the value of the homes of residents from property taxes, creditors, and circumstances arising from the death of the homeowner spouse. Back to top
What is a 1031-Exchange? A 1031 Exchange, also known as a Like-Kind Exchange, is a way of structuring a sale of certain kinds of property so that the seller’s profit or gain is not currently taxed. Instead, the property that is sold is replaced with another “like kind” property. If the transaction is properly structured, the seller’s profit or gain is deferred to a future date. Internal Revenue Tax Code Section 1031 allows taxpayers to defer income tax on capital gain from the sale of investment property ("relinquished property") which is held by the taxpayer for investment or productive use in a trade or business by reinvesting the proceeds in another property of like kind ("replacement property"). A 1031 exchange is possible only when you sell real estate held for investment purposes. It cannot be used for the sale of your personal residence. Consult IRS rules for the definition of like-kind and what types of properties qualify as like-kind. In order to preserve the exchange element and prevent taxpayers from merely selling relinquished property and buying replacement property, a taxpayer's access to the sales proceeds is restricted during the exchange period by requiring a third party (qualified intermediary, trustee or escrow agent) to hold the proceeds and disperse the same for the replacement property. At closing, proceeds are transferred to the third party acting as a facilitator to hold the funds until they are used to acquire the new property. The seller is allowed up to 45 days from such sale to identify the like-kind property where sales proceeds are to be applied. Back to top
What is FIRPTA? FIRPTA stands for Foreign Investors in Real Property Taxation Act of 1980, which is part of the Internal Revenue Tax Code and is a U.S. Law that applies to the sale of interests held by nonresident aliens and foreign corporations in real property located within the United States. The Act was enacted with the intent of recovering at least a portion of the taxes (based on the Sale Price and not the proceeds to the seller) due on the sale of real property by a foreign seller. A foreign seller may be a Non-Resident Alien individual, corporation, partnership, trust or estate. FIRPTA requires that on all transactions over $ 300,00.00, the buyer withholds 10% of the purchase price from the seller at closing, and remit the withheld amount to the IRS along with Forms 8288, 8288A & 8288B completed and signed by the buyer, within 20 days of the closing. All parties to the transaction must have a TIN (Taxpayer Identification Number), which may be a Social Security Number or an ITIN (Individual Taxpayer Identification Number) assigned by the IRS via a W-7 application form. Buyers and sellers are advised to check and confirm necessary actions for complying with this code and also for exceptions applicable under certain conditions.
NOTHING STATED HEREIN IS EITHER INTENDED OR SHOULD BE CONSTRUED AS LEGAL OR FINANCIAL ADVICE. THESE GENERALITIES ARE MERELY INFORMATIVE AND MAY WARRANT VISITORS TO CONDUCT THEIR OWN DUE DILIGENCE IN ACCORDANCE WITH THEIR LEGAL AND/OR FINANCIAL GUIDANCE.
