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
D) $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).
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Titles Deeds Recording Question
Background Knowledge for Titles Deeds Recording
Real World Application in Titles Deeds Recording
Common Mistakes to Avoid on Titles Deeds Recording Questions
Related Topics & Key Terms
Key Terms:
Related Concepts
For a deed to be valid, it must contain several essential elements including a competent grantor, identifiable grantee, consideration, legal description, granting clause, signature of the grantor, and delivery and acceptance.
Escrow is an arrangement in which a neutral third party holds documents, funds, or other items on behalf of the buyer and seller until all conditions of the transaction are met.
A general warranty deed provides the greatest protection to the grantee by guaranteeing that the grantor holds clear title and has the right to sell the property. It includes covenants that protect against all defects in title, even those arising before the grantor owned the property.
More Titles Deeds Recording Questions
In a Tampa transaction, a buyer wants the Florida rule on general warranty. Which statement is correct?
Which answer most accurately states the Florida rule for general warranty?
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?
John and Mary own property in Jacksonville as tenants by the entirety. John wants to secretly transfer his interest to his business partner without Mary's knowledge or consent. He executes a quitclaim deed to his partner. What is the effect of this deed?
What is the main difference between a general warranty deed and a special warranty deed in Florida?
- → Under Florida law, what does 'constructive notice' mean in the context of recorded deeds?
- → Which answer most accurately states the Florida rule for chain of title?
- → In Florida, all of the following situations would typically be excluded from standard title insurance coverage EXCEPT:
- → Non-single-family real property in Miami-Dade County is conveyed for $220,000. What total deed documentary stamp tax and surtax are due?
- → Sarah is purchasing a home in Miami and her attorney discovers that the current owner's deed was never properly recorded. The seller has been living in the property for 15 years and paying taxes. What is the most likely outcome regarding the validity of the seller's ownership?
- → Which deed is most commonly used in Florida residential transactions?
- → 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?
- → A Florida owner uses a quitclaim deed to transfer whatever interest the owner has to a family member. Which statement about that instrument is incorrect?
- → Lisa conveys property to Tom via warranty deed on Monday but doesn't record it. On Wednesday, Lisa conveys the same property to Susan via warranty deed, and Susan immediately records her deed. Susan had no knowledge of the prior conveyance to Tom. Under Florida's recording statute, who has superior title?
- → John owns property in both Broward and Palm Beach counties that he purchased with one deed. He wants to sell only the Broward County portion. The original deed was recorded in both counties. How should John properly handle the recording when he sells the Broward portion?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
Previous Question
A Florida owner reviews the standard owner's title policy after closing. Which listed risk is the exception and is not typically covered?
Next Question
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?