• What risks call for Title Insurance?
• Doesn't the seller's deed take care of giving me clear title?
• My lender has a mortgage title policy on my property. Why isn't that enough?
• Is Title Insurance expensive?
• Is the record of ownership complete from the first owner to the present?
• Are there any lawsuits or claims recorded against the property itself?
• Are there suits or judgments filed against the owner of the property?
• Are all taxes and special assessments paid?
• Does anyone have special rights to the property that would limit ownership?
• If the seller is a corporation, is it in a position to sell the property?
• What is an abstract? Doesn't it tell about the property?
• Can an examination of the abstract reveal all the defects in the title?
• What are some of the hidden risks?
• Is there any way to protect against hidden risks?

• What if I am unable to attend the closing?
• I am married. Will my spouse have to attend the closing?
• Why do I need homeowners insurance?
• Do I need flood insurance?
• What is a survey and why do I need one?
• How are title insurance costs calculated?
• What is a prior policy and what is its purpose?
• What do I need to bring to closing?
• Can I wire my funds for closing to Alpha Title?
• If my lender gets title insurance for its mortgage, why do I need a separate policy for myself?
• What are endorsements?
• How will I understand the documents I am signing at closing?
• What types of claims, or risks, are generally covered by title insurance?
• What is a homestead exemption?
• How do I file for homestead exemption?

• What if I am unable to attend the closing?
• I am married. Will my spouse have to attend the closing?
• How will I receive my proceeds?
• What do I need to bring to closing?
• When and how do I get the escrow money back from my lender?
• Why is my payoff so much higher than the balance shown on my last statement?
• How are title insurance costs calculated?
• What is a prior policy and what is its purpose?
• What is the for sale by owner process?

Real estate has such great value and is so basic a form of wealth that many special laws have been enacted for its protection. As a result, the owner of land has exceedingly strong rights... and so do the family and heirs of the owner.

However, others may have "rights" in the property as well. There are mortgage and leaseholder rights, liens due to unpaid taxes...lien claims to those whom the owner owes money...mining, oil or air rights...and many others. Anyone who has such a claim is, in a limited way, a part-owner. He or she cannot ordinarily be deprived of their interest except by having the claim settled or released. As a new owner you may know nothing about these risks, but you are still vulnerable to such claims on your property. That's why you need an insurance policy from Alpha Title.

Not at all. A "deed" is merely an instrument whereby a seller transfers his or her right of ownership, whatever it may be, to you. It is not proof that the person described as the seller is actually the owner. It does not do away with claims or rights others may have in the property. From the deed, you cannot determine what rights, liens or claims may be outstanding against your title.

Any person or financial institution that lends money on real estate wants that investment protected. Alpha Title provides mortgage title insurance policies to assure the lender that the mortgage is a valid first lien protected against hidden as well as known defects in the title as insured. Such a policy affords the only way a lender can be certain about the title which may be acquired in the event of a foreclosure.

A mortgage title insurance policy protects only the lender's interest in the property, not the current owner's. That's why Alpha Title provides owner's title insurance policies: to protect the owner's interest in a piece of property should a claim arise. Purchasing your owner's title insurance policy at the same time that the lender orders the mortgage title insurance policy can result in savings to you.

The cost of title insurance on any piece of property is very small when compared with the benefit and security it gives. And, there are no annual payments to keep the policy in force. The original premium is your only cost as long as you or your heirs own the property!

Most properties purchased have had a number of different owners over the years. The continuous record of all those transactions is called the "Chain of Title," and like any other chain, it is no stronger than its weakest link. Anything wrong with the title of the previous owner may very well affect your title, too.

If the former owner had a new sink installed and failed to pay the bill, the plumber may file a Mechanic's Lien claim. This stands as a claim on the property, as the new owner, may have to pay in order to clear your title. Similarly, there may be suits pending affecting the property, foreclosures or bankruptcy actions, or any number of claims or legal involvements which may cloud the title until they are properly settled or removed.

If a person is sued and a judgment is rendered against that person, any real estate he or she owns may become security for the debt. This means that he or she cannot sell that real estate and deliver a clear title until the judgment is paid, released or otherwise satisfactorily disposed of. Further, other suits filed against the owner or real estate, even though not yet decided, may prevent the sale of the property.

Unpaid real estate taxes are a first lien on any real property. If there has been a tax sale or forfeiture or any other objection or protest, it means that there are complications standing in the way of a clear title.

Many such things are possible. The right-of-way for a road or power line, an easement for a driveway, air rights, and sub-surface rights are examples of rights which may have been sold or granted to someone else by a former owner. If so, there may be restrictions on your use of the land.

You may buy a piece of property in good faith from a corporation, only to have the validity of the sale challenged by a stockholder who claims it was not properly authorized by the Board of Directors, or that the company was not empowered under its charter or bylaws to sell the land at all. There are further complications possible if the company is in receivership, or if the firm is being dissolved.

An abstract, which is used in some parts of the country, is a history of the title to property as revealed by the public records. Deeds, mortgages, other instruments and legal proceedings which have affected property through the years are all included in the abstract.

If something is revealed in the abstract which might stand in the way of a clear title, it is up to the owner and the owner's attorney to clear it. If they cannot do this, it must be accepted as a limitation on your right of ownership. Also, it is frequent for matters which seriously affect the title to be omitted in an abstract, because they are not shown in the public records.

It may not ... simply because the public records, from which an abstract is made, may not show everything which affects the title. For example: statements in the record may be incorrect or may fail to show important facts. There may be fraudulent or improperly executed documents on the record. Facts revealed in the abstract may be interpreted incorrectly. There may even be ordinary clerical mistakes which could seriously endanger the title.

Even after all these possible hazards are eliminated, there still remain some of the most serious sources of risk ... hazards which by their very nature simply cannot be uncovered.

Some of the most serious risks which are not revealed by the records or by an examination of the abstract but are covered by a Title policy are:

• Marital status of owner incorrectly given
• Undisclosed heirs
• Mentally incompetent or minor grantors
• Fraud and forgery
• Defective deeds
• Confusion due to similar or identical names
• Errors in records or clerical work

Yes, with a Title insurance policy. Under the terms of a Title policy, you are protected against risks and insured against loss. If your title as insured is ever attacked, Alpha Title stands ready to defend it in two ways:

1. If it is necessary to enter a legal defense of your rights under the policy in any suit or proceeding adversely affecting the title as insured, Alpha Title's underwriter employs legal counsel to take such action for you ... completely at the company's expense.
2. If a loss is sustained, you are protected up to the full amount of your policy, which is equal to the full purchase price you paid for the property.

Closing documents can be pre-signed, mailed, faxed or e-mailed to you prior to closing.

I AM MARRIED. WILL SPOUSE HAVE TO ATTEND THE CLOSING?

Florida is a Homestead state. This means that unless you are purchasing investment property your spouse will need to attend the closing, provide proper identification and be prepared to execute documents. If you are obtaining a mortgage and your spouse is not on the loan they will still need to attend the closing, provide proper identification and be prepared to execute documents.

WHY DO I NEED HOMEOWNERS INSURANCE?

If you are getting a mortgage on the property it is a requirement of the lender that you have insurance on the property. Insurance will need to be obtained as soon as possible. Paid receipts are to be faxed to our office. If you are purchasing a condo, townhouse or villa please check with your Homeowners or Condo Association to see if insurance is included with the dues.

DO I NEED FLOOD INSURANCE?

Many properties are located in a flood zone. If you are getting a mortgage and your property is in a flood zone, you must have flood insurance. Through the survey company, we will provide your insurance agent an elevation certificate which is necessary to determine your flood insurance premium.

WHAT IS A SURVEY AND WHY DO I NEED ONE?

The measurement by a surveyor of real property which delineates the boundaries of a parcel of land. A survey additionally delineates the exact location of all improvements, encroachments, easements and other matters affecting the title to the property in question. Most lenders require a survey as a condition of the loan.

HOW ARE TITLE INSURANCE COSTS CALCULATED?

Title insurance rates are regulated by the State of Florida as follows: $5.75 per thousand dollars of the sales price up to $100,000, and $5.00 per thousand dollars of the sales price from $100,001 to $1,000,000.

WHAT IS A PRIOR POLICY AND WHAT IS ITS PURPOSE?

The purpose of a prior policy is to obtain a reissue credit. This grants the holder of the policy a discounted title insurance rate if the following requirements are met: (1) the Owner's policy of title insurance is NOT more than three (3) years old if the holder is selling the property. This time limit does not apply if the holder is refinancing the property. (2) The insured named on the prior policy must be the same as those involved in the current transaction (3) the prior policy must be delivered to the title company at the same time the order is placed (4) the prior policy does not need to be issued by the same company that is issuing the new policy (5) Only an Owner's Title Policy may be used for a prior policy. Commitments and Loan Policies do not qualify.

WHAT DO I NEED TO BRING TO CLOSING?

You will need to bring:

• Funds for closing in the form of a cashier check payable to Alpha Title.
• Photo identification: valid state issued driver’s license, passport or state issued identification card
• If you are married you will need to bring your spouse.
• If you are moving into a condo or planned unit development that requires an approval you will need to bring an original approval to the closing if one has not been provided to us prior to the closing date.

CAN I WIRE MY FUNDS FOR CLOSING TO ALPHA TITLE?

Funds for closing may be wired to our escrow account. Contact our office for wiring instructions.

IF MY LENDER GETS TITLE INSURANCE FOR ITS MORTGAGE, WHY DO I NEED A SEPARATE POLICY FOR MYSELF?

The lender's policy covers only the amount of its loan, which is usually not the full property value. In the event of an adverse claim, the lender would ordinarily not be concerned unless its loan became non-performing and the claim threatened the lender's ability to foreclose and recover its principal and interest. And, in the event of a claim, there is no provision for payment of legal expenses for an uninsured party. When a loan policy is being issued, the small additional expense of an owner's policy is a bargain.

WHAT ARE ENDORSEMENTS?

An endorsement is an addition to or modification of a title insurance policy that expands or changes the coverage of the policy, fulfilling specific requirements of the insured. Most lenders require endorsements as a condition of the loan to further protect their interest.

HOW WILL I UNDERSTAND THE DOCUMENTS I AM SIGNING AT CLOSING?

Your closing agent will provide a brief explanation of each of the closing documents you are required to sign at closing. If you would prefer to personally read through all of the documents before signing, please contact us at least one week prior to closing and we will be happy to prepare a copy of your documents for review ahead of time.

WHAT TYPES OF CLAIMS, OR RISKS, ARE GENERALLY COVERED BY TITLE INSURANCE?

• Forgery and impersonation;
• Lack of competency, capacity or legal authority of a party;
• Deed not joined in by a necessary party (co-owner, heir, spouse, corporate officer, or business partner);
• Undisclosed (but recorded) prior mortgage or lien;
• Undisclosed (but recorded) easement or use restriction;
• Erroneous or inadequate legal descriptions;
• Lack of a right of access; and
• Deed not properly recorded.

WHAT IS A HOMESTEAD EXEMPTION?

Every person who has legal or equitable title to real property in the State of Florida and who resides on the property on January 1 and in good faith makes it his or her permanent home is eligible for a homestead exemption. A homestead exemption allows up to $25,000 to be deducted from the assessed value of a primary residence when calculating real estate property tax.

HOW DO I FILE FOR HOMESTEAD EXEMPTION?

Initial application for homestead exemption must be made between January 1 and March 1 of the year for which the exemption is sought. Initial application should be made in person at the property appraiser's office. If filing for the first time, be prepared to answer these questions:

1. In whose name or names was the title to the dwelling recorded as of January 1?
2. What is the street address of the property?
3. How long have you been a legal resident of the State of Florida? (A Declaration of Domicile or Voter's Registration will be proof of date before January 1.)
4. Do you have a Florida license plate on your car and a Florida driver's license?
5. Were you living in the dwelling on January 1?

For additional information on homestead exemption and a list of the property appraisers in the state of Florida please visit http://sun6.dms.state.fl.us/dor/property/exemptions.html

Closing documents can be pre-signed, mailed, faxed or e-mailed to you prior to closing.

I AM MARRIED. WILL MY SPOUSE HAVE TO ATTEND THE CLOSING?

Florida is a Homestead state. This means that unless you are selling investment property that you have not claimed as your homestead your spouse will need to attend the closing, provide proper identification and be prepared to execute documents.

HOW WILL I RECEIVE MY PROCEEDS?

Seller proceeds will be in the form of an escrow check payable to all parties named in title. If you need to have your proceeds check split or payable to a different party we will need written authorization prior to closing. If you would like your proceeds wired into your account please provide us with written wiring instructions. These instructions must include your bank name, ABA/routing number, name on the account and the account number. A nominal wire fee may apply.

WHAT DO I NEED TO BRING TO CLOSING?

You will need to bring:

• The keys to the property and any other entry devices (garage door openers, pool keys, mail box keys, entry cards, gate openers, etc)
• Photo identification: valid state issued driver’s license, passport or state issued identification card
• If you are married you will need to bring your spouse
• If you need to have your seller proceeds wired please bring written wiring instructions
• If you are required to bring funds to closing they will need to be in the form of a cashier check payable to Alpha Title. If the amount is under $500.00 you may use a personal check.

WHEN AND HOW DO I GET THE ESCROW MONEY BACK FROM MY LENDER?

The lender is required to refund to the borrower the money that is held in escrow within thirty days after it receives the payoff. For more information about escrow refunds please contact your mortgage lender directly.

WHY IS MY PAYOFF SO MUCH HIGHER THAN THE BALANCE SHOWN ON MY LAST STATEMENT?

The primary reason is that the payoff statement includes per deim or daily interest due from the last payment you made up to the date of payoff. In some cases, if the payment for the month of closing has not been made prior to the closing, this could mean up to two months of interest will be included in the payoff. As an example, if the per diem interest on your mortgage is $25.00, that could mean an additional $1,500.00 above the principal balance that is due. Additionally, lenders usually charge statement and fax fees that could add up to an additional $60.00.

HOW ARE TITLE INSURANCE COSTS CALCULATED?

Title insurance rates are regulated by the State of Florida as follows: $5.75 per thousand dollars of the sales price up to $100,000, and $5.00 per thousand dollars of the sales price from $100,001 to $1,000,000.

WHAT IS A PRIOR POLICY AND WHAT IS ITS PURPOSE?

The purpose of a prior policy is to obtain a reissue credit. This grants the holder of the policy a discounted title insurance rate if the following requirements are met: (1) the Owner’s policy of title insurance is NOT more than three (3) years old if the holder is selling the property. This time limit does not apply if the holder is refinancing the property. (2) the insured named on the prior policy must be the same as those involved in the current transaction (3) the prior policy must be delivered to the title company at the same time the order is placed (4) the prior policy does not need to be issued by the same company that is issuing the new policy (5) Only an Owner’s Title Policy may be used for a prior policy. Commitments and Loan Policies do not qualify.