Title Insurance Flashcards
(16 cards)
What is the purpose of title insurance?
protects the policyholder from losses arising from defects in the title
Title insurance is designed to safeguard against issues that may arise due to defects in the title, such as liens or claims by other parties.
Does Florida law require title insurance?
no
Florida law does not mandate the purchase of title insurance.
_____ searches provide added protection in the event there are unrecorded special assessment liens, unrecorded liens existing because of local ordinances, and unpaid country waste fees.
Municipal lien searches
Municipal lien searches help identify potential financial liabilities that may not be recorded in public records.
What are the two types of title insurance?
- owner’s policy
- lender’s policy
The owner policy is issued for the _______ (purchase price or loan amount).
purchase price
The owner policy amount is based on the purchase price of the property.
For an owner policy, the claim will pay up to the (purchase price or current loan balance).
purchase price
In the event of a claim, the owner policy will cover losses up to the purchase price of the property.
An owner policy benefits ___ and their ____.
owners and their heirs
The owner policy extends protection not only to the current owner but also to their heirs.
Is an owner policy transferable?
no
Owner policies do not transfer to new owners when the property is sold.
Who usually pays the closing expense of the owner policy? The seller or the buyer?
the seller
Typically, the seller is responsible for the closing costs associated with the owner’s title insurance policy.
Is the owner policy a one-time premium?
yes
The owner policy is paid as a single upfront premium at the time of closing.
The lender (mortgagee) policy is issued for the ____ (purchase price or loan amount).
loan amount
The lender policy is based on the amount of the loan taken out by the borrower.
For a lender policy, the claim will pay up to the (purchase price or current loan balance).
current loan balance
In case of a claim, the lender policy will cover losses up to the current balance of the loan.
A lender policy benefits the ___ ___.
mortgage lender
The lender policy is designed to protect the lender’s financial interest in the property.
Is a lender policy transferable (assignable)?
yes
Lender policies can be assigned to new lenders if the mortgage is transferred.
Who usually pays the closing expense of the lender policy? The seller or the buyer?
the buyer
The buyer typically pays the closing costs for the lender’s title insurance policy.
Is the lender policy a one-time premium?
yes
Similar to the owner’s policy, the lender policy is also a one-time premium paid at closing.
