For your Title Insurance Policy, the endorsements either extend or alter the policy’s coverage, or are used to interpret its provisions.
In most cases, endorsements are buyer’s charges, as they usually attach to the loan policy only. There is a whole list of possible endorsements, and which ones will come with your policy will be determined by the type of property being purchased. The lender will advise what endorsements will be required.
Three of the more common endorsements you will see are:
‐ 5.1 Planned Unit Development (PUD) – provides insurance that, (1) there are not violations of restrictive covenants, and any violation of the covenants will not cause a forfeiture or reversion of title; (2) the mortgage has priority over liens for charges and assessments by any HOA; (3) no existing structure will have to be removed because of any encroachment; (4) there has been no prior right of first refusal which would defeat title.
‐ 8.1 Environmental Protection Lien: this endorsement provides limited insurance that no environmental protection lien has been filed of record or provided for by state law as of the date of the Policy that has priority over the mortgage.
‐ FL9 (AKA Florida Form 9) Restrictions, Encroachments and Minerals Endorsement:
provides insurance against loss or damage resulting from the violations of deed restrictions, encroachments and set back lines existing as of the date of the policy.
When someone is about to sign a deed, have you ever had them ask what this line means?
A common source of frustration at the closing table with lender involved deals is “waiting for funding.” To the average customer, when they think of wiring money, they assume it happens at the speed of light. It doesn’t.
A few years ago CFPB changed closing requirements and we came in to the brave new world of Closing Disclosures and the ALTA Settlement Statement. For closings that involve a loan, additional work-hours are needed to get each deal to the closing table increased for settlement service providers.
Make sure your customers write the full year 2020 on checks, official forms, and legal documents.
With the New Year, Florida’s new Remote Online Notarization (RON) law is going into effect. This is the next step along the path toward e-closings.
Ever had a listing that looked like it was going on be a nice, clean closing, but once “Title comes back,” issues come up that delay the closing for days, weeks or even months as issues are cleared up? Do you wish you knew earlier so there was time to clean up the Title before a contract comes in?
One of the most important things a title company does is to make sure a new homeowner has full possession of the property they are buying. After moving in, new homeowners should not have to deal with issues created before they purchased it.
Every closing has its own special path to take, but both the easy and quick ones and the difficult and drawn-out ones all have the same six major milestones.
My Agent Greg 