All posts tagged: Q&A

Real Estate Ownership Questions and answers

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Q:  When should you have Title Insurance?

A:  You should have Title Insurance for every piece of real estate that you ACQUIRE.  Whether you take title of a property through purchase or inheritance, you take on the liability that goes with that ownership.

Under the new regulations, a Title Insurance Policy can transfer to the heirs of a property.  They can inherit the title along with the title insurance.  However, if you receive a home or land as a gift, title insurance does not come with it, and you do not buy the title insurance policy at the purchase price of a property.  You are responsible to defend your ownership should a challenge come up against it from previous owners, their heirs, or lien holders.

In these tough economic times, desperate people can do desperate things.  You’re a sitting duck without feathers if you don’t have title insurance because a challenge can cost you more to defend your ownership than you can afford, unless you have an owner’s title insurance policy to cover those litigation expenses.

Q: When does your liability of real estate ownership stop?

A: When you croak. You are responsible for the title on land you’ve sold.  When you sell a home or land, you transfer ownership to the buyer by warranty deed.*  Don’t throw those policies away!

Title insurance protects you even after you sell. Because the contracts and the new title insurance for the buyer require you to convey with warranties, you become liable for anything that has ever transacted on the property. Hold on to that owner’s title policy, even if you let the property go.

Answers! Answers! Answers! If you have more questions about Title Insurance, we have more answers.

*Warranty Deeds are required in most Real Estate Contracts for Purchase and Sale.

Stephen CollinsReal Estate Ownership Questions and answers
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Real Estate Ownership Liability

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Q: When does your liability of real estate ownership stop?

A: When you croak. You are responsible for the title on land you’ve sold. When you sell a home or land, you transfer ownership to the buyer by warranty deed.* Don’t throw those policies away!

Title insurance protects you even after you sell. Because the contracts and the new title insurance for the buyer require you to convey with warranties, you become liable for anything that has ever transacted on the property. Hold on to that owner’s title policy, even if you let the property go.

Answers! Answers! Answers! If you have more questions about Title Insurance, we have more answers. Send us your comments.

*Warranty Deeds are required in most Real Estate Contracts for Purchase and Sale.

Stephen CollinsReal Estate Ownership Liability
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Equity Q&A

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Q: My house is paid for and worth quite a bit—can I use the equity to purchase another house?

A: Yes. You can use the equity in your home by getting a line of credit, and then with that money, can do what you like. The bank you got the line of credit from does not need to take a look at the property you’re buying. Right now if you have equity in your house, real estate is a GREAT investment—take advantage of the great rates!

Holly Yelton was kind enough to help us with the answer. If you have a real estate-related question, please ask and we’ll be glad to address it.

Stephen CollinsEquity Q&A
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Title Insurance Questions and Answers

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Q: How much does Title Insurance cost?

A: Title Insurance fees are regulated by the State of Florida. The base rate is $5.75 per thousand up to $100,000, and $5.00 per thousand thereafter up to $1 million. Discounts are available for some transactions. Check with your title company for specifics.

Q: Do I have the right to select the Title Agent for Title Insurance?

A: If you pay, you choose. If you pay and someone tells you that you don’t have the right to choose your Title Agent, either that person doesn’t understand the rules, or they’re not being honest with you. Please remember, Title Insurance is a contractual item and sometimes you can pay and not choose if you agreed to it on the contract; otherwise, the basic rule applies: you pay, you choose.

Answers! Answers! Answers! If you have more questions about Title Insurance, we have more answers.

We also offer free seminars on Title Insurance at your convenience.

Stephen CollinsTitle Insurance Questions and Answers
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