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Title Insurance

 What is it? Do I need to pay for it?

Wikipedia’s definition is:  Title insurance is a form of indemnity insurance,  which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans”.

So, why do you need this title insurance, which is a onetime cost at the time of closing and based on the value of the property?  Closing, refers to the event where the property is being transferred from seller to buyer, which is also called “escrow” or “settlement” in some States.

The answer is: YES! And it is best described why you need it, sharing my own experience:

My investor client closed on a property in Maryland on a Tuesday after having walk through at the property.   The property needed work and my client went back to the property on Thursday with his construction company to start working.  When they arrived, what a surprise:  the house was wrapped like an Easter Egg with crime scene yellow tape and a sign: ”do not enter by court order – do not trespass”   My client called me and we found out that the court had attached the house to a law suit for punitive damages.  Apparently the dog of the former owner had bitten a person, who sued him in court for damages. The judge attached the house to the law suit for punitive damages on Wednesday! 

The importance of having a title insurance was imminent.  My client hired an attorney who notified the court of the closing, which luckily happened prior of the judge’s order.  The damages for my client were small, mainly attorney fees – but paid by his title insurance. 

 

Other examples for claims could be:

·        A person in bankruptcy signs the deed to convey the property without authority to do so

·        A family member is forging the signature and conveys the property to a third party

·        A deed is incorrectly recorded with wrong legal description

·        A mechanic lien was placed against the property, which was not found at time of title search

These things do happen!

 

If you finance the purchase of the property with a mortgage from a lender or refinance your loan, you have to obtain a title insurance to protect the lender.  You do not have a choice.  In some areas (like Palm Beach County) it is customary that the seller pays for the lender’s title insurance premium. 

 

But to insure yourself - the buyer, this insurance is optional.  Owner’s title insurance is complex and you should read the policy to understand any exclusions. Ask the title agent to explain the coverage to you.

 

How much is the title insurance? In the State of Florida the insurance and indorsement rates are promulgated by the Florida Insurance Commissioner.  To give you an example: For a sale of property valued with $200,000 the insurance premium is: $1,075 (indorsement fees may be added).

 

Since you are required to pay for the lenders policy, you can ask for a simultaneous issue rate, which will make your owner’s policy relatively inexpensive.  In the above example the additional fee would be $25.  Also if the owner has a policy which was issued less than three years prior, you can request a re-issue rate – which is a reduced premium for up to 40%.  If you are paying cash the owner’s policy would be the full amount of $1,075.  The insurance covers you as long as you (or your heirs) own the property.

 

Having a Title Insurance gives you the peace in mind as we live in a litigious society.

Posted in:General and tagged: Do y need title insurance?
Posted by Christel Silver on May 12th, 2017 10:38 AM

RENT VS. BUY

For some people, buying their home makes the most sense, and for others, renting is best. The decision to own versus rent is very much a lifestyle decision as it is an economic decision and is among the biggest financial decisions that many adults make.  Determining how much money you can dedicate to the purchase is an important aspect of buying your new home.

Here some questions you need to ask yourself:

  • How much money do you have to invest?
  • Can you qualify to buy?
  • How long are thinking of staying in the house?
  • What is the economic outlook for appreciation?
  • What is my credit score?
  • Are you looking in an area where the rents are high?

To determine whether to buy you first h to find out whether you can afford to buy! You also need to consider other factors, including the time you'll stay in your new home, the home's prospects for appreciation and the taxes, insurance and condo/HOA fees. 

Buying a home is costing money (closing cost).  If you believe you're going to be in a house less than three years, most experts suggest it's safer to stick with renting, unless you could afford to keep the house as an investment, as it takes about 2- 3 years to recover the cost of buying home.

Reasons to rent:

  • You want to become certain about a specific neighborhood, renting allows you time to find it.
  • This is a job transfer and you are not sure about this job, renting gives you more flexibility.
  • If you need to improve your credit score for a favorable interest rate, timely rent payments will help you. Today’s interest rates on a mortgage is based on your credit score!
  • Financially tight? You would have no money left after buying? If major repairs are necessary, you don't need to spend money: you just call the landlord!
  • The original investment is much lower!

 

 

Reasons to buy

  • If you are paying rent, you are paying your landlord's mortgage or adding equity to his or her bank account. When you own, you increase your degree of ownership in your home with every mortgage payment.
  • You can deduct mortgage interest as well as your property taxes from your income tax.
  • You also have a benefit when you sell the house with a gain – under certain circumstances: you do not owe any capital gains taxes (at this time) – so you get tax free money!
  • You can make improvements to your house – without asking the anybody.
  • If you pay – you stay: nobody can ask you to move!
  • Your mortgage is paid off: now it is your house.

If you would like to see what is good for you: Realtor.com, Zillow.com, besides other websites offer calculators where you can find out for yourself, based on your personal information.

 

Posted in:General
Posted by Christel Silver on October 14th, 2016 5:51 PM

Eligible first time homebuyers could be awarded up to $15,0000 for a down payment from the Hardest Hit Fund if a new strategy is approved by the U.S. Department of Treasury. 

As the deadline approaches to spend hundreds of millions of dollars the Florida Housing Finance Corp, which oversees the state’s Hardest Hit program, is looking to adapt its strategy to offer down payment assistance to first time homebuyers.

If approved it would award eligible homebuyers up to $15,000 for a down payment and Florida would be the first state to use the federal funds to help people buy homes. 

With rent prices on the rise in South Florida this could be a great opportunity for someone who is ready to buy a home but may not have enough cash for a down payment.  Also with the FHA program now making PMI for the life of the loan this could, depending on their price of the home, help a first time homebuyer avoid that hefty payment.

Terms of proposed down payment plan

  • $15,000 would be in the form of a no-interest loan forgivable over five years
  • Would help an estimated 3,333 homebuyers
  • Home must be buyers primary residence
  • Buyers must meet minimum credit scores for buying a home

For more information click here.

Posted by Christel Silver on April 6th, 2015 6:31 PM

Coral Trace gracious lifestyle is superbly located just and minutes from the heart of Delray Beach, one of Florida’s most vibrant popular downtown areas.

Discover the hidden value in every Coral Trace Villa:Concrete block, Spanish style concrete roof tiles, Hurricane shutter, spacious one car garages, double driveway, private and gated community, professionally landscaped, convenient location close to I-95 with easy access to Florida’s Turnpike, or catch the free Trolly on Congress Ave and West Atlantic Ave for a free drive downtown!
                                    

282 Villas are sharing the beautiful lakeside clubhouse, with game room, well equipped exercise room, card room, and enormous social room, ideal for meetings and parties.

     

As a resident you can enjoy playing tennis on two lighted private tennis court, swim in the sparkling pool and enjoy the sundeck and outdoor spa.
                                                                        

The community offers three different models:

            The Coquina:  2 Bedrooms and 2 Bath with 1401 sq ft living,

            The Periwinkle: 3 Bedroom and 2 Bath with 1559 sq ft living, and

            The Angel Wing: 3 Bedroom, 2 Bath and ½ Bath with 1615 sq ft living.

For more information go to www.coraltracehoa.com

 

 

 

 

 

 

 

 

 

 

                                 

Posted in:General
Posted by Christel Silver on August 24th, 2013 8:26 PM
Header
Header_2
Listings Photo
$1,750.00
231 E Coral Trace Cir

Delray Beach, FL 33445



Beds: 3 Rooms: 5
Full Baths: 2 Sq. Ft.: 1559
Garage: 0 Built: 2001
 

First time rental!
This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google? Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

Christel Silver
Silver International Realty, Inc.
5612748153
www.silverhouses.com



 
  Visit this listing here
Posted in:General
Posted by Christel Silver on August 24th, 2013 8:16 PM
Header
Header_2
Listings Photo
$1,100.00
13791 Oneida Dr

Delray Beach, FL 33446



Beds: 2 Rooms: 4
Full Baths: 2 Sq. Ft.: 1026
Garage: 0 Built: 0
 

This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

Christel Silver
Christel Silver, P.A.
5612748153
www.silverhouses.com



 
  Visit this listing here
Posted in:General
Posted by Christel Silver on February 17th, 2010 11:51 AM
Header
Header_2
Listings Photo
$1,450.00
1722 Bridgewood Dr

Boca Raton, FL 33434



Beds: 0 Rooms: 4
Full Baths: 0 Sq. Ft.: 0
Garage: 0 Built: 0
 

This is a new listing that
I thought you might be
interested in. Visit this
listing online to see more
photos of the property,
Google Earth satellite
images, and much more.
 

If you have any questions
about this property or
require more information,
please feel free to call.

Christel Silver
Christel Silver, P.A.
5612748153
www.silverhouses.com



 
  Visit this listing here
Posted in:General
Posted by Christel Silver on February 17th, 2010 11:36 AM