Frequently
Asked
Questions

You finally found a perfect home for you and your family or you found the right buyer for your property… Now what?
This Q&A will give you all the information you need to understand the whole process, from the moment you sign
the contract until the day of your closing and beyond.

You will leave our closing with a package of all the documents you signed. You must bring to closing a valid photo I.D. such as a license, military I.D., or passport.
Palm Title Services, Inc. is known in the industry for making your closing process go smoothly and professionally.

  1. What happens when the Florida real estate contract is signed by seller and buyer?
    Once the contract is signed by both the buyer and seller, the title company takes it from that point forward. The title insurance company is responsible for providing the title insurance, closing on time in a professional and competent manner making your overall closing experience, a pleasurable one.
  2. What is a title?
    A title is the legal documentation that includes the specifics about the property you are purchasing and who owns it, often in the form of a deed. When you buy a home, you are buying the title to the property which gives you the right to use the space. That title may be disputed based upon past rights and claims asserted by others. These claims can arise after you’ve purchased your home and jeopardize your right to ownership, unless you have title insurance to protect that right.
  3. What is a title search?
    It is a comprehensive examination of the historical records concerning the property. These records include deeds, liens, court records, property and name indexes and many other documents. The purpose of the search is to verify the seller’s right to transfer ownership and discover any claims, defects and other rights or problems on the property.
  4. What is Earnest Money and Escrow Account?
    Earnest money is a deposit made to a seller showing the buyer's good faith in a transaction. The earnest money deposit is typically turned over to the title company after the contract is ratified. The money is placed in an escrow account until closing. If the deal goes as planned, the earnest money is usually applied towards your down payment.
  5. What are the title company’s responsibilities?
    The Title Company responsibilities are: Performing the title search and the inspection of the title, preparing documents to clear and transfer the title to the buyer, ordering any required payoffs, estoppel letters, municipal lien search, code and permit violation search, survey, holding the earnest money in an escrow account (if applicable), scheduling the day and time of the closing with all parties involved in the contract, facilitating the signing and notary of all required documents, and recording the necessary documents after signing. If there is a mortgage, the CD is prepared, the payoff of all mortgages, liens, judgment, HOA dues, etc. are done. The deed and mortgage and all other necessary documents are recorded with the Clerk of the Court, and a homeowner’s title insurance policy is issued approximately 4 weeks after closing.
  6. What is the role of the title company?
    Your title insurance company plays one of the most important roles in the property transaction. It is vital to choose the right title company that has a good reputation and has been in business for many years, this will ensure your transaction proceed with no issues. Our company is owned and operated by an attorney, so you get the benefit of legal oversight of your file. Click in "About Us" to know more about our company.
  7. Who chooses where the earnest money is held?
    While real estate agents and lenders may refer you to a Title Insurance company, you have the right to choose the right title company for you. Check their credentials with the Florida Department of Financial Services, call title companies to determine their response time, you may request a quote or ask us a question (click below). Shopping for Florida title insurance is just like shopping for any other product or service. Be aware that some companies will quote you a flat fee that includes all processing fees; other will have additional fees that are disclosed later in the process. The title company you choose will play a critical role in a successful and stress-free real estate closing, therefore the company with the best reputation is your best option. If you’d like to learn more about Palm Title Services Inc., visit the "About Us" section to learn more about our staff.
  8. What can you find in a title search?
    A title search can display several title defects and liens, as well as other encumbrances and restrictions; this can include unpaid taxes, judgments against the seller, unsatisfied mortgages, restrictions limiting the use of the land and many others. This process requires a thorough knowledge of many areas of law and taking into effect many factors such as knowing if the foreclosure was done properly, whether there are any federal or state liens present, or seeing if the divorce was valid.
  9. How much does a Florida title search cost?
    A title search in Florida is typically the seller’s responsibility and ranges anywhere from $80.00 to $1000.00, depending if it’s a residential or complex commercial title search and examination. The fee will be included on your personalized quote. Click below for your quote.
  10. What is title insurance?
    Title insurance is a one-time expense protecting your title to the house for as long as you own the house. If a claim is made against your property, title insurance, through its underwriters, and in accordance with the terms of your policy, assures you of a legal defense and pays all court costs and related fees. Also, if the claim proves valid, you’ll be reimbursed for your actual loss up to the face amount of the policy.
  11. How much does title insurance cost in Florida?
    The cost of title insurance varies based on the purchase price of the property; a title insurance premium is one-time fee only at settlement. Florida’s title insurance premium is based on a rate calculation, which is determined by the state of Florida and it is proportional to the purchase price. Palm Title goes strictly by the book so you will not be charged more than the amount specified by law. For example, a property worth $100,000 would have a title insurance fee of $575.00, while a $300,000.00 property would have a $ 1,575.00 title insurance cost. Palm Title Services can help calculate the exact costs of your Florida title insurance. Click below for a quote.
  12. Who pays for title insurance in Florida?
    In Florida, the person responsible for paying title varies per county and can be negotiated in the contract. In most counties, the buyer generally pays for the title insurance and chooses the title company. In Palm Beach County, the seller generally pays for the title insurance and chooses the title company. While title and closing costs are typically paid by certain parties, all costs are negotiable and can be specific to the contract you sign.
  13. Who chooses the title insurance company, the buyer or the seller?
    The party paying is typically the one who gets to choose the service provider. In most Florida counties, the payer is typically the buyer, although there are few exceptions. Palm Title Services, Inc. can and will deliver the best service for you.
  14. Is title insurance transferable?
    No. Title insurance is never transferable when the ownership of a property changes, and it similarly can’t be assumed by a new owner. In fact, a title insurance policy itself terminates when the legal title on a property changes.
  15. How do you transfer a title in Florida and what is the cost of it?
    We recommend a Warranty Deed and Title Insurance since Florida has too many unauthorized transfers and title frauds. However, for certain reasons, the parties may utilize a Quitclaim Deed. The fees related to title transfer in Florida are called documentary tax stamp rates, and they’re included in closing costs, which are typically paid by the seller, but could vary according to a specific agreement between the parties. The documentary tax stamp rate is proportional of the home’s purchase price. It is about $0.70 for every $100.00. Click below for a customized Quote.
  16. What is a closing?
    Closing is when all required forms and documents are signed, the title to a property is transferred from seller to buyer, the keys are exchanged, and all closing costs (financial issues) are settled, proceeds are sent to the seller, and the necessary documents are filed in the public records. Other names for “closing” are “settlement” or “escrow”.
  17. Where does closing takes place?
    The closing normally takes place in the title company’s office where all the documents are completed and executed to finalize the transaction between buyer and seller. At Palm Title Services we understand the different needs of clients, that’s why we offer closings at other locations specified by the client, and also we will mail documents to clients that cannot be present at the time of closing.
  18. What are closing costs?
    Closing costs are all the fees required to close the real estate transaction. The closing cost varies according to the purchase price. Some of the items you will see in your Settlement Statement can include (but not limited to it): • Bank/Lender fees. • Property taxes • Loan origination fees. • Mortgage insurance (PMI) • Title insurance • Attorney and/or Broker fees - Commissions • Closing fees • Mortgage recording fees • Mortgage Estoppel • Survey fees