What does a title company do? Well, a title company issues title insurance. In incident to or as a result of issuing title insurance they must prepare all the necessary documents to convey title. Title insurance is where the title has been examined by looking at the records, and then once they’ve examined it they determine if there’s any liens or any encumbrances such as easements, or restrictions, or judgments. Most people are very concerned about getting a clear title. Clear title means, to most people, that there are no judgment liens against the property or other kinds of liens.
The title company, through their underwriter, has the title examined. Once they have the title examined they issue what they call a title commitment. It says that we will insure the title to so and so, which is usually someone who is buying the property under a contract. If Mr. and Mrs. Jones are buying a piece of property or have a contract to purchase it for say $100,000, the title commitment would read, “To John Jones and Mary Jones.” It would show that it would be issued for $100,000. It would commit to issue a title insurance policy free of any particular liens against the property. The first page would indicate the amount and then they would show the legal description. The second page is called Schedule B1 on the commitment. It would outline what would be necessary in order to have the title insurance issued. First off it would say that you got to pay the money. Secondly it’s going to say that you need a deed from the present owner to whoever is purchasing it, to Mr. and Mrs. Jones.
Then the other requirements may require that the existing mortgage be paid off out of the, from the closing before they could issue a title policy. It would also say that we may need to give them an [Estopple 00:02:26], or a statement from a Homeowner’s Association or Associations to see if there’s any unpaid Association dues. If there’s any judgments outstanding they would say that these judgments need to be paid for us to issue a title policy. If the property is in the name of a descendant, the title commitment under Schedule B1 would call for a probate proceeding. Schedule B1 are all the requirements that must be fulfilled in order to issue a title policy.
Then you turn to Schedule B2. That’s a schedule of encumbrances that you will receive the policy, such as various restrictive covenants, particularly if you’re buying a condominium and will have the entire condominium. If you’re buying through a Homeowner’s Association it’ll say what the restrictive covenants are and reference them as where they’re recorded in the public records. Usually a closing, as far as a residential closing, where someone’s buying a house, they’ll delete what they call Tute Standard Exceptions. One is rights of claims of parties in possession because the buyers will be getting the keys at closing. The other one that is deleted often is if you delete the unrecorded liens. In Florida, anybody provides material or services to a particular property has 90 days in which to file their claim of lien. It will insure against unrecorded liens that have occurred in the last 90 days.
Once all the requirements have been satisfied and everything’s been signed, the title company then takes the money from the closing that they get from the buyer, then they pay off the mortgages, they pay whatever they need to to satisfy all the requirements under schedule B1 of the title insurance. Then they will issue the title policy. The title policy then insures the buyer, Mr. and Mrs. Jones who purchased the property, that they have what they call “marketable title” to the property, meaning that there are no outstanding liens against the property or there’s no encumbrances, or easements, or restrictions unless they were shown in the schedule which was referred to in the commitment as Schedule B2.
What does a title company do? A title company issues title insurance. They usually also, are usually the closing agent, meaning that they’re the ones that handle the money and prepare all the documents necessary in order to have the title insured. They’re authorized to do that. I’m a title agent. I’m an attorney title agent, so I issue title insurance. If you come to my closing in my office, and I try to be at the closings, I try and explain any of the exceptions, or try and talk to you about your title insurance policy and show exactly what the exceptions are such as restrictive covenants. If you’re selling your real estate, and I compete with other title companies as far as price is concerned, and believe that we provide good quality service, timely service, and you also get the benefit of me throwing [kabitzing 00:06:10] as far as what the law is, or explaining certain things at the closing table.
If you sell your property and you need a title agent, or you want me to close a transaction, you merely need to tell your realtor that you would like to see how much it would cost for the Law Office of Waller and Mitchell to be your title insurance agent, and close your transaction. You don’t necessarily need to pay me an attorney fee, but I’ll just close the transaction as a title agent and closing agent for the title insurance premium. When you sell your house, well give me a call at 727-847-2288 and I’ll be glad to write the title insurance for you, and also answer any questions. Thank you for calling.