A Tampa property is being purchased for $450,000. The buyer wants to know the cost of owner's title insurance. Using Florida's promulgated rate of $5.75 per $1,000 of coverage, what is the title insurance premium?
Correct Answer
B) $2,587.50
The title insurance premium is calculated as ($450,000 ÷ $1,000) × $5.75 = 450 × $5.75 = $2,587.50. Option A is incorrect ($2,475 would be 450 × $5.50). Option C is incorrect ($2,650 would be approximately 450 × $5.89). Option D is incorrect ($2,700 would be 450 × $6.00).
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All of the following are typically covered by a standard owner's title insurance policy in Florida EXCEPT:
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A Jacksonville buyer discovers that a previous owner's divorce decree was never properly recorded, and the ex-spouse now claims ownership rights to the property. The buyer has owner's title insurance. How will this situation likely be resolved?