In Orange County, Florida, a buyer is purchasing a home for $380,000 with a mortgage of $304,000. If the title insurance premium rate is $5.75 per $1,000 for the owner's policy and $2.25 per $1,000 for the lender's policy, what is the total cost for both policies?
Correct Answer
A) $2,869.00
Correct: Owner's policy: ($380,000 ÷ $1,000) × $5.75 = $2,185. Lender's policy: ($304,000 ÷ $1,000) × $2.25 = $684. Total: $2,185 + $684 = $2,869. Why not B: This incorrectly calculates one or both premiums. Why not C: This is only the owner's policy cost, not the total. Why not D: This significantly underestimates the total premium cost.
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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?
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