Title Problems in Florida Real Estate Transactions: How to Protect Yourself Before Closing

– Insights From Tampa’s Leading Real Estate Law Firm

Title problems in Florida real estate transactions can lead to legal and financial complications. To protect yourself before closing, it is important to take proactive steps, including conducting thorough title reviews, obtaining title insurance, and ensuring compliance with statutory requirements.

First, ensure that the seller provides marketable title at closing. Under Florida law, the seller is obligated to deliver a marketable title, free of liens and encumbrances, as a contractual precondition to closing. If the title is unmarketable due to defects such as unpaid taxes, liens, or code violations, the seller must take diligent efforts to cure these defects before closing. Buyers have the right to delay closing or terminate the agreement if the seller fails to resolve title issues within the specified timeframe. 

Second, conduct a comprehensive title search and review, which is handled by a title or closing agent. A title search should identify any defects, liens, encumbrances, or adverse claims affecting the property. Florida law requires that title evidence, including surveys, be certified and meet specific standards. For example, a survey certified to the title insurer must be completed within 90 days before closing to ensure that encroachments, boundary disputes, or other issues are addressed in the title policy  Fla. Stat. § 627.7842. Additionally, buyers should review the title commitment and request all attachments to confirm the property’s status and any exceptions to coverage.  

Third, obtain title insurance, again via a title or closing agent, to protect against unforeseen title defects. Title insurance policies indemnify buyers against losses resulting from liens, encumbrances, or title defects. Florida law mandates that title insurers insure against adverse matters recorded between the effective date of the title commitment and the recording of the deed, except for matters disclosed to the insured  Fla. Stat. § 627.7841. Buyers should also ensure that the title policy does not exclude coverage for claims or liens not shown in public records if the seller provides the required affidavits at closing  Fla. Stat. § 627.7842.

Finally, engage a qualified title insurance agent or attorney to oversee the closing process. Title agents have a fiduciary duty to handle closing funds and documents properly. They must comply with Florida’s statutory requirements for escrow accounts and disbursement of funds, ensuring that all transactions are conducted transparently and securely  Fla. Stat. § 626.8473. Additionally, the closing agent must prepare documents in accordance with the sale contract and address any discrepancies that may arise during the process  

By taking these steps, buyers can mitigate risks and ensure a smooth real estate transactions in Florida.

Read more:
Common Real Estate Disputes in Florida and How an Attorney Can Help
Title Defectss in Real Estate and What You Should Know

Gilbert Garcia Group provides real estate legal services for clients in the greater Tampa Bay area as well across the State of Florida. Call our office today at 813-443-5087. We look forward to speaking with you.

El Grupo Gilbert García ofrece servicios legales inmobiliarios a clientes en el área metropolitana de Tampa Bay y en todo el estado de Florida. Llame a nuestra oficina hoy mismo al 813-443-5087. Esperamos hablar con usted.