In Florida real estate transactions, what is the difference between a preliminary title report and a title insurance policy?
Correct Answer
B) A preliminary report shows title conditions before closing while a policy provides insurance coverage after closing
A preliminary title report shows the current condition of title and what will be required to issue a policy, while the title insurance policy provides actual insurance coverage after closing and payment of premium. Option A is incorrect because it reverses the functions. Option C is incorrect because they serve different purposes at different times. Option D is incorrect because both cash and financed transactions can have preliminary reports and policies.
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More Titles Deeds Recording Questions
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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?
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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?
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A Fort Lauderdale property owner purchased title insurance 5 years ago and now discovers an old judgment lien that was missed during the original title search. The lien was recorded 10 years ago. What is the owner's recourse?