In Florida, what is the primary difference between an owner's title insurance policy and a lender's title insurance policy?
Correct Answer
B) The owner's policy protects the buyer's equity interest while the lender's policy protects the mortgage interest
Correct: The owner's policy protects the buyer's ownership interest and equity, while the lender's policy protects only the lender's mortgage interest. Why not A: Both policies cover defects that existed before the policy date, not future defects. Why not C: Both policies are permanent, though the lender's coverage decreases as the loan is paid down. Why not D: Both policies generally provide similar coverage, but protect different interests.
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Sarah is selling her Miami Beach condominium to Robert. At closing, she signs a deed that contains warranties that she owns the property and has the right to convey it, but provides no warranties against defects that existed before she acquired the property. What type of deed did Sarah most likely execute?
- → All of the following are essential elements of a valid deed in Florida EXCEPT:
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Sarah discovers that her neighbor's fence encroaches 3 feet onto her property, which she purchased 2 years ago in Jacksonville. Her title insurance policy shows no survey exception. What is the most likely outcome regarding her title insurance claim?
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A Tampa buyer is purchasing a property where the title search reveals an old mortgage from 1995 that was never properly released. The current owner claims it was paid off years ago but has no documentation. How should this situation be handled regarding title insurance?