What’s the most common business in Florida real estate transactions? Is it:
If you guessed Title Insurance Companies—congratulations, you're correct! (and yes, the title of the post kinda gave away the answer)
A Title Insurance Company is a business that’s at the very center of nearly every single real estate transaction, whether it's a For-Sale-By-Owner transaction without Realtors, or even whether it's a cash transaction with no mortgage financing.
A title law firm is a similar type of business, where an attorney (or attorneys) operate the business and offer legal advice to their clients directly. Title Insurance Companies also have attorneys, sometimes on-premises and sometimes off-site, depending on the business.
Certain states, such as New York and Georgia for instance, are considered "attorney states", where the majority of real estate transactions are done through title law firms exclusively. Here in the state of Florida, the vast majority of transactions are performed by Title Insurance Companies.
For instance, let’s say that you’re buying a home, and the previous owner had a contractor lien for $25,000 for an unpaid roof that showed up after you bought the home. If the title company didn’t catch this lien during their legal search, then the title insurance policy would pay for this lien instead of you!
As always, if you’re looking to purchase, refinance or get preapproved to purchase a home anywhere in the state of Florida, we’d love to help. Simply give us a call so we run some numbers for you and answer all your questions!
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Yours in successful homeownership,
Unconventional Lending Program Director