Title is the legal right to own, use and transfer a property, and it is only as good as the public record supporting it. A title commitment that lists an old mortgage nobody satisfied, a judgment against a former owner, an easement that runs under the planned pool, or a gap where a deceased owner’s estate was never probated is a warning that the property cannot be conveyed cleanly. Some defects surface before closing, when there is still time to fix them. Others surface years later, when a neighbor produces a survey or a lienholder sends a demand. I’m Eric J. Goldman, and I handle title review, curative work and title insurance claims for buyers, sellers, owners and lenders in Broward, Miami-Dade and Palm Beach counties.
Whether you are a buyer looking at a commitment with exceptions you do not understand, a seller whose closing is stalled by a title problem, or an owner who just learned of a defect the title company missed, call (954) 536-7557.
How Title Insurance Works in Florida
An owner’s title insurance policy protects the buyer against losses caused by title defects that existed on the closing date but were not listed as exceptions in the policy. A lender’s policy protects the mortgage lender. Both are issued by an underwriter through a title agent or an attorney, and both are governed by Part XIII of Chapter 627 of the Florida Statutes. Florida sets the premium by regulation, so the cost does not vary between agents; what varies is the quality of the examination and the willingness of the agent to resolve problems before closing rather than simply listing them as exceptions.
Custom in Broward and Palm Beach has the seller pay for the owner’s policy and select the closing agent; in Miami-Dade, the buyer usually pays and chooses. Either way, the buyer should have someone reviewing the commitment on the buyer’s behalf. I serve as the closing attorney and title agent on many of my clients’ transactions, and I review commitments issued by other agents when a client wants an independent look. My article on why you need title insurance in Florida covers the basics.
Reading the Title Commitment
The commitment has two parts that matter. Schedule B-I lists the requirements that must be met before the policy will issue: payoff and satisfaction of the existing mortgage, releases of liens, a corrective deed, probate documents, entity authority documents, and so on. Schedule B-II lists the exceptions, meaning the matters the policy will not cover: recorded easements, restrictive covenants, association declarations, the survey exception, and any specific problems the examiner found. Every item on both schedules deserves a question: can this requirement actually be met before closing, and does this exception affect what my client intends to do with the property? A boilerplate utility easement usually does not. A 20-foot drainage easement across the back yard, or a restriction that prohibits short-term rentals, might change the deal.
Common Title Defects in South Florida
- Unreleased mortgages and liens. Mortgages paid off years ago with no satisfaction recorded, home equity lines closed but never released, judgment liens, and IRS or state tax liens against a current or former owner.
- Code enforcement and municipal liens. Fines that accrue daily under a municipal code enforcement order and attach to the property, along with unpaid utility balances and special assessments. These do not always appear in the title search and require a separate municipal lien search.
- Association liens for unpaid assessments, and estoppel certificate disputes over what is actually owed.
- Probate gaps. A deceased owner still in the chain of title with no probate, or a personal representative’s deed recorded without the court order authorizing it.
- Defective deeds. Missing witnesses, wrong or incomplete legal descriptions, a deed signed by one spouse for homestead property, or a deed from an entity signed by someone without authority.
- Survey problems. Encroachments by or onto the neighboring parcel, fences and structures across the line, and improvements built inside easements or setbacks.
- Open permits. Not a title defect in the strict sense, but a permit that was never closed out can block a future sale and expose the new owner to code enforcement.
- Fraud and forgery. Forged deeds and identity theft involving vacant lots and unoccupied properties are a growing problem in all three counties.
Curing Title Before Closing
Most defects can be cured without litigation if there is time. I obtain and record satisfactions and releases, negotiate payoffs of judgment and code liens, prepare corrective and confirmatory deeds, obtain affidavits of heirship and continuous marriage, open summary or ancillary probate proceedings where an estate is the missing link, and work with the underwriter on what it will accept. Florida’s Marketable Record Title Act, Chapter 712, extinguishes many stale interests older than the 30-year root of title and is often the basis for an underwriter’s willingness to insure over an ancient exception. When the claimant cannot be found or will not cooperate, a quiet title action is the tool that finishes the job. Timing is the constraint: the purchase contract’s title cure period controls how long the seller has, and I negotiate extensions when a cure is realistic. My real estate closing attorney page describes how title work fits into the overall transaction, and my article on what happens if a title search reveals problems walks through the buyer’s and seller’s options under the standard Florida contract.
Title Insurance Claims After Closing
When a covered defect surfaces after closing, the owner’s policy obligates the underwriter to defend the insured’s title or pay the loss, up to the policy amount. Making the claim correctly matters: the policy requires prompt written notice, and underwriters scrutinize whether the defect was created or known by the insured, whether it falls within an exception, and whether the loss is measurable. I prepare title claims, respond to underwriter investigations and reservation-of-rights letters, and litigate coverage disputes when an underwriter denies a claim it should pay. Where the defect is the result of an examiner’s or closing agent’s negligence rather than an insured risk, a separate claim against the agent may be available.
Frequently Asked Questions
Is title insurance required in Florida?
An owner’s policy is not legally required, but any lender will require a lender’s policy, and a buyer paying cash who skips the owner’s policy has no protection against defects the search missed. Given that the premium is a one-time charge regulated by the state, declining it is rarely a good decision.
The title commitment lists an old mortgage that was paid off. What now?
The lender must record a satisfaction of mortgage. If the lender still exists, it can usually be obtained within a few weeks. If the lender has merged, failed or disappeared, the process involves tracing the successor, and if that fails, a quiet title action or, in some cases, an underwriter’s agreement to insure over the mortgage based on proof of payment.
What is the difference between a title defect and a survey problem?
A title defect appears in the public records: a lien, a bad deed, a missing link in the chain. A survey problem is physical: a fence, driveway or building in the wrong place. The standard owner’s policy excludes matters a survey would show unless the survey exception is removed, which is why obtaining a current survey before closing is so important.
How long do I have to make a title insurance claim?
The policy has no fixed deadline for the defect to surface, but it requires prompt notice once you learn of it, and delay that prejudices the underwriter can reduce or eliminate coverage. Contact a lawyer as soon as a title problem appears.
Talk to a Fort Lauderdale Title Attorney
If a title commitment, a survey or a demand letter has raised a question about who owns what, call (954) 536-7557 or use the contact page. I handle title review, curative work and title claims throughout Broward, Miami-Dade and Palm Beach counties, and the consultation is free.