TITLE INSURANCE & CLOSINGS

If your making Miami Dade County or South Florida your home or your investment then you are affected by real estate law. As a potential owner, seller, broker, lender, borrower, investor or other arrangement you need oversight in your transaction.  The body of law dealing with real estate is varied and vast and often misinterpreted. An attorney experienced in real estate law should be consulted when dealing with real estate matters, especially if the matter involves:

  • PURCHASE AND SALE CONTRACTS
  • FOR SALE BY OWNER
  • COMMERCIAL CLOSINGS
  • RESIDENTIAL CLOSINGS
  • ESCROW & TITLE INSTRUCTIONS
  • TITLE PROBLEMS
  • INHERITANCE ISSUES
  • PRIVATE & HARD MONEY LOAN DOCUMENTS

Real estate law is Contract Law

Contract Law: Legal matters involving real estate often deal with agreements (contracts) between two or more persons (parties). Purchase and Sale Agreements, Escrow Instructions, Promissory Notes and Trust Deeds, Real Estate Listing Agreements, and Home Improvement Agreements, are all governed by contract law.

It Is Crucial That You Understand The Contract You Are Signing.  

Remember that your failure to read and/or understand the contract is not a defense if disputes arise. If you sign a contract, the law presumes that you both read and understood the terms of the agreement.

SALE BY OWNER – a way to reduce the costs of selling property? Perhaps, but it can also provide an open door for problems. It is imperative that you fully understand the effect that the legal process and related laws can have on the transaction and your ownership status, and you must know the various documents that are needed or required by law. Seek professional legal assistance to help avoid the many problems that arise under these circumstances.

TITLE (“ownership status”): Title problems frequently arise in real estate matters. In order to properly resolve title issues you need a full understanding of title law in Miami, Florida and you need to understand the role a title insurance company plays regarding title or ownership status.

ESCROW agents are generally part and parcel of every real estate transaction in the eastern U.S. It is important to understand the function of such agents’ their duties and responsibilities to each party.

Secured LOANS are the loans given in exchange for a promise to repay the loan. The promise to repay is most often backed or secured by filing a deed of trust “against” your real property. A deed of trust gives power to the lender to foreclose or take possession of your property should you fail to repay the loan as agreed. It is vital that you fully understand the terms of your loan agreement and the effect the trust deed may have on your continued ownership of the property.

What is Title Insurance? Do I need it?

Title Insurance protects either a homeowner or a lender against a claim being made against the title to the property. An Owner’s Title Insurance Policy protects the purchaser against the cost of a title claim and the cost of having to defend such a claim. A Lender’s Title Insurance Policy similarly protects the lender against a claim and the expenses or loss that it could incur if a claim is made against the property upon which the lender has issued a loan. The premium for the Title Insurance Policy is paid once, and the Policy remains in effect for the entire time that the owner owns the property, or in the case of a lender, for the entire term of its mortgage.

What else does Title Insurance do?

The Title Insurance Policy also provides marketability coverage, which means that it also insures that an owner can sell his property free from any claims that would be covered by the Owner’s Title Insurance Policy.

What can Attorney Lopez do for me?

Attorney Mery Lopez will order title evidence from its title underwriter, who will deliver the relevant documents relating to the property. Attorney Mery Lopez will examine those documents to determine if title is clean and marketable, or if there are any title defects that must be cured before closing. Nuñez Law then issues a title commitment, and when it is clear that the requirements for delivery of clean and marketable title can be accomplished at or before closing, the closing is scheduled. When the closing has been concluded, our Title Company as agent will issue a Title Insurance Policy, which is delivered a couple of months after closing along with the original recorded Warranty Deed.

Is the Title examination enough?

No, a title examination is only as good as the records that the title underwriter provides. There are a variety of title problems that could arise, and without a Title Insurance Policy, there is no insurance coverage to protect the homeowner or the lender in the event that a title problem occurs. By purchasing a Title Insurance Policy, the risk of any of these potential title problems is passed to the title underwriter, and away from the homeowner or the lender. The kinds of title problems that could occur are numerous, and the following is a list of a few of them:

  • Forged documents of ownership
  • Deeds signed by mistake or under duress, which are subsequently challenged after closing
  • Undisclosed prior mortgages or tax liens that were not satisfied by a previous owner
  • A disgruntled partner or spouse challenging a transfer by his or her partner or spouse after the closing
  • A misfiled or misposted document by the clerk’s office which effects the title to the property, but which did not show up in the title records because of the misfiling
  • A document being recorded during the “gap” period between the most recent update of title (which may be up to several weeks before closing) and the date of recording of the homeowner’s deed.

Under all of these circumstances, a Title Insurance Policy would insure the homeowner or lender against the claim being made against the title to the property. Without a Title Insurance Policy, the homeowner or lender would have to defend the claim on its own.

Is it a requirement to buy Title Insurance?

Almost every lender requires that a Lender’s Title Insurance Policy be issued, and the cost of that policy is generally borne by the homeowner. A homeowner is not required to purchase its own Owner’s Title Insurance Policy. However, it would be prudent for a homeowner to purchase its own coverage since the Lender’s Title Insurance Policy does not protect the homeowner, and when a mortgage is issued as part of a purchase transaction, the additional cost of issuing the Owner’s Title Insurance Policy is relatively nominal. In a transaction where no lender is involved, it is even more important that a homeowner purchase title insurance, since it is the homeowner’s total investment (as compared to only the down payment when a loan is involved) that is at risk in the event of a title claim. The one time premium for an Owner’s Title Insurance Policy is a very worthwhile investment in the security of your home.

It’s not uncommon for residential landlord and tenants to have disagreements, even conflicts, around issues involving rent, landlord entry to rental premises, noise, repair problems, or security deposit deductions. Your options will vary depending on the specifics of the dispute, including whether or not the tenant is still on the leased premises, whether the tenant has given you proper notice to end the tenancy (or simply broken the lease), and other factors. A licensed Attorney has the expertise to give you the peace of mind and confidence that your Eviction case will be professionally handled from start to finish, and at the same time we always strive to provide our clients with the most competitive rate plan for their uncontested Residential and Commercial Evictions.

In some situations, such as a conflict over noise, your best option may be to give the tenant a warning notice and try to negotiate an agreement, rather than immediately head to court. In others—for example, a tenant who has not paid the rent or otherwise violates your lease or the law—you’ll want the tenant out.

To head off disputes with tenants, it’s crucial that you understand and comply with the landlord-tenant laws in Florida, and any local rules in Miami Dade County, such as rent control, which may apply to your rental property. State and local laws will often spell out exactly what landlords can and can’t do in a particular dispute with tenants. For example, nearly all states set specific rules and procedures for evicting a tenant for nonpayment of rent and prohibit landlord self-help remedies to get a tenant out. Because landlord-tenant laws vary from state to state, and even city to city, and because they are often complicated, it’s not uncommon for landlords to get help from an experienced landlord-tenant lawyer.

Our law firm regularly handles residential landlord/tenant cases for landlords and sophisticated tenants in Broward and Miami-Dade County. Our twofold experience in residential/landlord tenant cases working for both property owners and tenants puts us in a unique position to understand the legal strengths to pursue and weaknesses to avoid in landlord/tenant lawsuits.

Sellers

Call an Attorney to Stay Protected

Selling home is one of the most frightening experiences you will have in your lifetime.  You need someone on your side looking after your interests.  The real estate agent does not focus on contract details.  They want the deal to be done quickly.  Their interests are partially aligned with you.  They want the deal to close so they will get paid.  You
want to make the best deal possible – even if that means taking things slowly. Shouldn’t you have an objective party on your side during this process?

Some Thoughts on the Contract

Buying a home involves signing at least one contract and often a lot of paperwork written in a language only a lawyer can decipher. The contract may be several hundred pages or even a handwritten document. It can be called a “Letter of Agreement” or a “Letter of Understanding”. Whatever form or name it will be legally binding.

Having your attorney draw up the contract can help prevent you from making a big mistake. You don’t want to discover that you have signed away important rights, failed to include important protections, or failed to get what you deserve.

Most people negotiate better for others than they do for themselves.  An attorney will let you know when you are making a bad deal and help you make the best deal.
When it comes to legal advice, an ounce of prevention is worth a pound of cure. An attorney’s perspective is much more helpful and very likely much less expensive than a law suit after the fact.

When Should You Hire an Attorney? 

Get your attorney as early in the selling process as possible.  This gives you time to develop a relationship with the person who will be “watching your back”.
At the latest, bring your attorney into the process when you are ready to evaluate an offer and certainly before you sign a contract.

How Do You Choose an Attorney?

Hiring an attorney is an important decision and it should not be taken lightly.  You should ask for information on the
attorney’s background, qualifications and education before making a final decision.

The process of selecting an attorney is similar to that of choosing a doctor. Talk with your friends, family, and coworkers. Get their experience and advice, and find out who they like to work with.

Buyers

Before You Sign, Call an Attorney

Buying a home is one of the most important decisions you will make in your lifetime.  It makes sense to have someone on your side looking after your interests.  The real estate agent works for the seller.  They get paid based upon the sale price of the home.  They want the deal to be done quickly.  The bank wants to loan you money.  They don’t get paid unless the sale closes.  Their interests are not necessarily aligned with you.  The real estate firms and the banks and their in-house attorneys, will be looking out for their client’s interests, not yours.

Shouldn’t you have someone with you who knows the law? That’s looking out for your interest alone?”

Some Thoughts on the Contract

Buying a home involves signing at least one contract and often a lot of paperwork written in a language only a lawyer can decipher. The contract may be several hundred pages or even a handwritten document. It can be called a “Letter of Agreement” or a “Letter of Understanding”. Whatever form or name it will be legally binding.

Having an attorney review the contract can help prevent you from making a big mistake. You don’t want to discover that you have signed away important rights, failed to include important protections, or failed to get what you agreed to accept.

Most people negotiate better for others than they do for themselves.  An attorney will let you know when you are making a bad deal.
When it comes to legal advice, an ounce of prevention is worth a pound of cure. An attorney’s perspective is much more helpful and very likely much less expensive before all of the papers are signed than after.

When Should You Hire an Attorney? 

It doesn’t usually cost more to consult with a lawyer at the beginning of your home-buying process than later, engage an attorney once you have begun your real estate search.  This gives you time to develop a relationship with the person who will be “watching your back”.
At the latest, bring your attorney into the process when you are ready to make an offer and certainly before you sign an offer to purchase.