Questions I Get Frequently Asked
The average policy is pretty standard. Owner’s policies typically protect against a number of contingencies, like forgery, fraud, spousal claims, and undisclosed heirs. Lenders policies will protect them against lien position and against loss should a title problem arise. A lender’s policy ONLY protects the lender, NOT the owner.
2) Who usually pays?
The party responsible for paying for the two policies varies from state to state and sometimes from county to county. In some areas, the buyer may pay for one; the seller, the other. That doesn’t mean if the buyer pays, he can’t haggle for all or part of his costs, everything is negotiable. In Lee County, the seller usually picks and pays for title insurance for the new owner, while the buyer will pay for any lender’s policy in connection with a loan.
3) How is a lien on the property handled?
All liens against a property are settled when escrow closes and will be added to your closing costs. The amount of the lien will come from the sellers proceeds. Your asking and selling prices are based on market conditions and do not account for the presence of a lien. The lien on your property is your problem and yours alone, so hopefully there is enough equity to cover the price of the lien. It does need to be paid in order for the new buyers to take clear title.
4) How is a Title Company chosen?
If you are paying for the title insurance, you have the right to select which ever title company you prefer. Though if you’re not paying, but want to be able to choose the company, be prepared to share some of the costs. Your realtor, if represented by one, will also help with this decision if need be.
5) How is a closing date chosen?
A closing date is chosen by the buyer on the real estate contract once presented to the seller. If all accept, then the “close date” on the contract will rule. However, in certain circumstances, this can be amended.
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Posted on May 18, 2012, in Title and tagged Clear Title, Closing, Closing Costs, Closing Date, Coverage, Forgery, Fraud, Jennifer Ferri, Lee County, Lender's Policy, Lien, Owner's Policy, Proceeds, Real Estate Contract, Seller, Spousal Claims, SWFL Real Estate, Title Insurance, Title Junction, Title Work, Undisclosed Heirs. Bookmark the permalink. Leave a comment.