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The real difference between Coinsurance and Reinsurance

With most situations involving title insurance, the underwriter issues a policy in the full amount of the transaction and is therefore liable for that full amount.  For example, XYZ Title Insurance Company issues a $10,000,000 Owner’s Policy – in the event of a total title loss/claim, XYZ would be liable for the full $10,000,000. But […]

When Unrecorded Documents Affect Your Title

Occasionally a title examiner will come across an instrument which references or cites an unrecorded easement, restriction or agreement.  Therefore, the question arises:  Does an unrecorded matter affect the underlying title to real property?  Of course the answer is – it depends. Florida is a race-notice state. The priority of a lien or encumbrance is […]

Quick Overview: When To File A UCC With The State Or County

In accordance with 679.5011, F.S., a UCC Financing Statement may be filed with the State and/or the County, depending on the collateral’s classification. So from a title insurance perspective, where do you file your UCC? Let’s start with a short background on the UCC Financing Statement. A properly filed Uniform Commercial Code (UCC) Financing Statement […]

Update: How to Correctly Remove the Standard Title Exceptions

Most liens, encumbrances or defects of title will be revealed by a title search. But what about matters that aren’t disclosed by a title search? To protect themselves against possible unrecorded or owner specific matters, a typical title commitment will contain five standard title exceptions. These exceptions fill in the gaps created by legislation, personal […]

Corrective Deed or Affidavit – Do You Know When To Use?

Let’s first start by differentiating between a mistake and a defect. A mistake is listing an incorrect grantee or legal description on the deed.  A defect is an error with the execution of the deed, such as the lack of witnesses, proper execution or notary acknowledgement.  We’re going to touch on some of the curative […]

7 Specific Things You’re Doing Wrong As A Title Agent

While this specific list is for Florida Title Agents, the concepts exist regardless of the state you practice in.  Here are 7 things you may be doing wrong as a title agent: Not giving reissue rate when applicable.  Few title agents realize that they’re required to give the discounted “reissue rate premium” if applicable.  This […]

The Secrets Behind How an Underwriter Reviews A Mortgage Modification

A mortgage is a lien upon real property which acts to secure the obligation under a promissory note. More simply, a borrower’s promise to pay back the loan is supported up by a “foreclosable” lien on their real property. If the borrower quits paying and therefore fails to meet their obligation under the promissory note, […]

The New Mortgage Priority Guarantee Policy: Coverage, Requirements and Answers

2012 gave rise to a slue of mortgage modifications accounting for nominal changes to insured mortgages.  These changes commonly included decreases in interest rates and extensions of maturity dates.  These “loan workouts” are expected to continue well through 2013.  As a result, these non-novation, non-substitution rate premium triggering, modifications have created the need to provide […]

Special Requirements For Property Conveyed To Or From The County

Whether insuring a deed from the county or to the county, there are special requirements and statutes that every title professional should know.  As you may recall, each conveyance must contain the following six elements:  Capable Grantor and Grantee, Consideration, Legal Description, Conveyance Language, Execution and Delivery/Acceptance.  While all six are necessary, two of these […]