SELLERS: FREQUENTLY ASKED TITLE COMPANY QUESTIONS

What Do I Do Before Closing?

1. Locate your prior title policy and survey, if possible.
2. Gather current loan information for each mortgage or line of credit so title company can order payoff:

a. Lender name & phone number
b. Loan number

3. Cancel homeowner’s insurance only after the closing.
4. Order final reading for all utilities effective the day of closing.
5. Bring your driver’s license or government issued photo ID (Military ID, Passport) and your social security number to closing.
6. If married, and the property you are selling is your residence, your spouse must also sign documents.
7. If you are bringing funds to closing in excess of $500, bring a cashier’s check made payable to Sunbelt Title Agency. (If you need wiring instructions, or want us to wire your proceeds to you after closing, please contact our office.)
8. Bring keys, garage door openers, and any special instructions for new owner to closing.

When and how do I get the escrow money back from my lender?

The lender is required to reimburse the money that is held in escrow within thirty days after it receives the payoff from the title insurance company. Escrow is almost never deducted from the payoff at the time of closing. If there are special circumstances that require this to be done or if you must receive your escrow sooner than normal, you should contact your lender well in advance of the closing to inquire about this possibility.

Why is my payoff so much higher than the balance shown on my last statement?

The primary reason is that the payoff statement includes interest due from the last payment you made up to the date of payoff. Mortgages are paid in arrears, i.e. January’s payment paid for the interest accrued in December. In some cases, if the payment for the month of closing isn’t made before closing, this could mean up to two months of interest will be included in the payoff. If the Per Diem Interest is $25, that could mean an additional $1,500 above the principal balance that is due. In addition, some lenders charge fees to obtain payoff statements.

Why am I paying for the buyer’s title policy and documentary stamps?

The Title Policy guarantees that clear title can be given on the property. It varies in different counties as to who pays for this, but in this region it is typically paid by the seller. Most contracts executed in the State of Florida require the seller to pay for the documentary stamps on the deed while the buyer pays intangible tax and doc stamps on the new mortgage.

How are title insurance costs calculated?

Title insurance rates are regulated by the State of Florida and therefore cannot vary greatly from company to company. Title insurance companies must also charge for what are known as related services. These services include the Title Search fee and the Closing fee.

The cost varies because it is based on the purchase price. It is a one-time fee and is paid at closing. Although you pay only once, the protection lasts as long as you or your heirs retain an interest in the property.

What is a prior policy and what is its importance now that I am selling or refinancing my property?

The purpose of a prior owner’s policy is to allow the seller to have re-issue credit. This grants the holder of the policy a greatly discounted title insurance rate if the following requirements are met:

· In the case of a sale, the Owner’s Policy must not be more than 3 years
old. Note: For refinancing the property and for vacant land, there is no
restriction regarding the age of the prior policy.
· The credit amount is based on the amount of the prior policy, not the
current sales price. The credit cannot be higher than the sales
price. If the prior sales price is higher than the current sales
price, the credit is based on the current, or lesser, amount.
· The insured names on the prior policy must be the same as those involved in the current transaction.
· The prior policy must be delivered to the title company before the closing.
· The prior policy does not need to be issued by the same title company that is issuing the new title policy.
· Florida law states that only a prior Owner’s Policy may be used in order to receive re-issue credit. A commitment or a Lender’s Policy does not qualify. When you refinance, you only purchase a Lender’s Policy which covers the new lender; your original owner’s policy is still in effect.

BUYERS: FREQUESTLY ASKED QUESTIONS

What Does a Title Company Do?

Orchestrates everything leading to the closing, issues title insurance to the
new owner and the lender, conducts the closing and handles post-closing
requirements.

• Works with Seller’s lender to pay off mortgage(s)
• Works with Buyer’s lender to set up new mortgage
• Conducts the closing
• Disperses funds, records deed and mortgage, sends signed loan documents to lender
• Issues the title insurance policy

What Should I do Before Closing?

• Apply for your loan and provide all necessary documents to lender.
• Make arrangements for Homeowner’s Insurance as soon as possible.
• Have the Utilities placed in your name effective the day of closing.
• If you are using a Power of Attorney, have the title company review the document ahead of time. The Lender and Sunbelt Title must approve it before closing. Bring the Original Power of Attorney document to closing.

What Should I Bring to Closing?

• Your spouse if this will be your primary residence.
• A Cashier’s check made payable to Sunbelt Title Agency if you are required to bring funds to closing. State law will not allow personal checks over $500.00 to be accepted. - or -
Wiring instructions can be obtained from Sunbelt Title.
• Government issued photo ID such as Driver’s License, Passport or Military ID and your Social Security Number or Green Card.
• Original Power of Attorney document, if applicable.

What Happens at Closing?

The Closing is the final step toward owning your new home:

• Buyer signs closing and mortgage papers, brings funds and receives keys to property.
• Seller signs closing papers, gives keys to buyer & collects funds from sale of house.
• Title company disperses funds, pays off seller’s mortgage, records new deed and mortgage.
• In about an hour everyone leaves happy.

What is Title Insurance?

• Unlike other insurance which protects what might happen in the future, title insurance protects you from what has happened in the past by searching public records.
• Provides coverage for losses due to defects in the title that occurred prior to your ownership.
• Protects against things such as unpaid taxes & liens, judgments, fraud & forgery or other issues that might go undetected until after closing. These could affect your ownership and investment.

What does Title Insurance Cost?

• Title Insurance is a one-time fee regulated by the State and is paid at Closing.
• The cost varies because it is based on the purchase price of the property.
• In this region, the seller customarily pays for the owner’s policy which protects new owner. The buyer pays for the policy that covers the lender.
• Example: $100,000 purchase price = $575 for the owner’s policy. The lender’s policy is just $25.
• The protection lasts as long as you or your heirs retain an interest in the property.

What Expenses Should I Expect?

• Closing Fee
• Lender’s Policy
• Endorsements to Lender’s Policy, if applicable
• Recording Fee for the Warranty Deed and Mortgage
• Documentary Stamps on the Mortgage
• Intangible Tax on the Mortgage
• Survey, Termite Inspection, Condo Approval Fee, HOA Dues and Transfer Fee, if applicable
• Home Inspection Fee, usually paid at time of inspection
• First Year Homeowner’s Insurance (and Flood Insurance, if applicable)
• Lender Fees. Appraisal and credit report are usually paid at time of application.
• Recording Fee for the Assignment of Mortgage, if applicable