FAQs

Here are some of the questions we hear most often. If your question is not answered here, please email us at [email protected] for a prompt reply, or call (407) 892-6800 and a member of our team will be happy to help you.

• What is a title?

  A title is the recognition of property ownership. A title is less of an object, and more of a status or concept. The title to a property is the owner’s right to possess and use the property, as well as transfer legal ownership of the property. If you hold the title to a property, you are entitled to possess, use, or transfer it.

• What is a clear title?

  A clear title is a status of ownership without any kind of lien or levy from creditors or claims against the home by other parties. A clear title means that there is no question as to the legal ownership of the property or home. This is also known as a “clean title”, “just title”, “good title”, or a “free and clear title”.

• What is a deed?

  A deed is simply a legal document that grants the bearer a right or privilege, such as ownership. When you purchase your home, you’ll receive a deed which shows that the seller transferred their legal ownership, or “title”, of the home to you.

• Why is transferring the title of real estate so much more complicated than transferring the title of other types of personal property?

  Real estate is much different than other types of personal property. Besides being one of the most meaningful investments a person can make in their lifetime, real estate is typically considered permanent and may have many owners over a few lifetimes. In order to transfer clear title to real property, it is first necessary to determine the rights and claims outstanding on the property.

• What is a title search, and why is it necessary when closing on a property?

  A title search is a detailed examination of the historical and public records concerning a property to determine the status of a property’s legal ownership. During a title search, a title company or attorney will research the vested owner and search through deeds, mortgages, liens, levies, claims, other court records and judgements, property and name indexes, and property tax records.

  The goal of a title search is to confirm that the vested owner has a clear and free title to the property (thereby having the right to sell or finance the property), so they can legally transfer that clear title to you. A title search may uncover defects in the title like liens, encumbrances, and other restrictions (e.g., unpaid taxes, easements, unsatisfied mortgages, judgements against the property owner, and restrictions of use or transfer). These defects need to be remedied before the closing takes place.

• What is title insurance, and how does it protect me from defects in the title that are discovered after I’ve already closed on a property?

  Title insurance is offered by the title company’s underwriters and is required by most lenders. The underwriters will perform a diligent title search, and then offer an insurance policy for a one-time fee at closing. These policies protect lenders and buyers against future damages if defects are found in the title. These policies are meant to minimize risk and protect the individual ownership or claim to a property.

  It is unfortunately not uncommon for a previous owner to have missed a few property tax payments or a contractor to file a suit claiming that they were never paid for work done on the property. Having a title insurance policy will protect against these damages, including legal costs and related fees, up to the face amount of the policy.

  Title insurance also helps mitigate the risks of forged documents such as deeds, releases, or wills; undisclosed or missing heirs; mistakes in recorded legal documents; liens or unpaid estate, inheritance, income, or gift taxes; or fraud.

• Are there different types of title insurance?

  Yes! Generally speaking, there is Lender’s Title Insurance policies, and Owner Title Insurance policies.

  Most lenders require that a Lender’s Title Insurance policy be paid for by you, the borrower, which protects the lender from title defects up to the amount of the mortgage. The policy lasts until the mortgage is paid off. This policy, however, does not offer any protection for your personal equity in your home.

  Owner’s Title Insurance policies, on the other hand, protect your, the owner’s, equity in the property up to the face amount of the policy for as long as you own your home. This insurance can be purchased with a one-time fee at closing. It is not uncommon, after negotiations, for the seller to pay the Owner’s Title Insurance policy fee.

• What is “pro-ration” of property taxes?

  Essentially, this is the process of splitting the property taxes for a home between the buyer and seller for the year in which the closing takes place. It’s a fair way to handle not having to pay more taxes than you should when buying or selling property.

• The premium listed on the paperwork I received from the title insurance company doesn’t seem to match up with the title insurance premium enumerated on the Loan Estimate and Closing Disclosure. Am I being changed more?

  Most of the time, no – you’re not being charged more if the itemized amounts seem different. Depending on the state where you’re buying your home, the title insurance company may be required by law to display the itemized costs in a specific way, which may differ from the format of the same fees on the Loan Estimate and Closing Disclosure. When reviewing the fees to make sure you’re not being charged more than you should be, it’s important to add up all the title-related costs you see in the title insurance paperwork and the Loan Estimate or Closing Disclosure. When comparing costs for title insurance, make sure to compare the bottom-line total.