title insurance in florida Title Insurance in Florida

The Role Of Title Companies In Real Estate Transactions

Apr 16 2024

Imagine that you have finally chosen your ideal house in Florida. You’ve been looking for this perfect property for months and are prepared to submit an offer. Before making a purchase, however, you must successfully negotiate the complex world of real estate transactions.

For sellers, it is just as important to have a real estate expert to help navigate the complexities of selling real estate in Florida. An experienced attorney-owned and operated title company can assist you with the process, whether you are the buyer or the seller of Florida real property.

Below, we discuss the importance of title companies in Florida real estate transactions. We also go over the services that title companies offer, their role in a closing transaction, and how they may support you as you purchase or sell a property in the dynamic Florida real estate market.

Decoding the Role of a Title Company in Your Property Purchase

In any real estate deal, the title company plays an important role. The title company investigates the ownership history of a residence and its title. They also help to resolve any lien or title matters that come up, and they work to ensure that any required debts are paid off at closing.

A title company often serves as an escrow agent as well, to hold the escrow deposit that is given by the buyer.  They also act as the closing agent, handling the preparation and signing of closing documents, the recording the deed and mortgage, and the disbursement of the closing proceeds to the various parties involved in the transaction.

When Does the Title Company Come into A Real Estate Transaction?

Once an offer is made and accepted, the title company will get involved to hold the escrow, and to start the process of conducting the lien and title searches on the property.

For a real estate transaction to move forward and the sale to be completed, there needs to be “clear and marketable” title. The buyer is typically advised to get title insurance to protect against possible liabilities. Title insurance protects a buyer from a range of title matters, including fraudulent conveyances, clerical errors, undisclosed judgments, etc.

What Services Does a Title Company Provide?

Here are the specific duties of a title company when it comes to real estate transactions in Florida:

Title Search and Analysis

Title companies have advanced real estate title search and review departments. To keep all interested parties informed about the status and conditions of title to the subject property, these departments examine the real estate-related public documents. This data is often compiled and given by the title company in the form of a title commitment or a preliminary title report.

Closing Agent in Real Estate Transactions

In real estate transactions, title companies frequently serve as the closing agent. This means that the title company acts as an agent for all parties involved in the transaction to handle the closing itself. In addition to receiving and distributing payments associated with the conveyance transaction, the title company prepares the closing documents and coordinates for their signing. Following the parties’ signatures on each document, the title company will record necessary documents (including mortgages and deeds) with the county land recorder’s office and issue the title insurance policy to the buyer.

Serving as the Escrow Agent

In connection with real estate transactions, title companies frequently serve as the escrow agent as well. At the request of the buyer and seller, an escrow agent holds money or documents during a closing transaction.

For instance, when buying real estate, the buyer will provide the title company with the payments required to cover escrow deposit and the purchase price, and the seller will provide the title company with a signed deed to the real estate. In its capacity as an escrow agent, the title company only releases the money and the deed upon the closing taking place.

Title Insurance Provider

Title companies issue title insurance policies on behalf of the title insurance companies (such as Old Republic, Fidelity, etc.). The title insurance company is usually not the same as the title company that issues the policy. Rather, the title company just gets paid a part of the insurance premium for issuing the title policy on behalf of the title insurance company and functions as an agent of the insurance company. The title company also helps with the process required to clear title, facilitate the closing, and to then issue the insurance policy. The insurance company receives the other part of the premium and assumes the liability for any losses incurred by the policy.

Partner with Marina Title: Ensuring Smooth and Secure Property Transactions in Florida

If you have questions about selling your property or buying a house in Florida, the team of Marina Title is here to help. Florida’s leading title company, Marina Title, is owned and run by seasoned real estate and legal professionals. For additional information, contact us today or call (800) 604-1871. Marina Title provides a full range of title, escrow, and closing services for properties located anywhere in Florida.

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