A Tallahassee buyer purchases a property and later discovers that the previous owner had granted mineral rights to an oil company, but this was not disclosed in the title search. The buyer has standard owner's title insurance. What is the likely outcome?
Correct Answer
D) The title insurance company will pay damages for the undisclosed mineral rights deed
The title insurance company will pay damages for the undisclosed mineral rights deed because the failure to discover and report a recorded deed affecting title is a covered loss under the policy. Option A is incorrect in terminology - it's not about 'covering loss of value' but about the title defect. Option B is incorrect because while the deed may have been recorded, the title insurance protects against such undisclosed matters. Option D is incorrect because the oil company has legitimate rights if properly conveyed.
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Previous Question
A Gainesville property is being refinanced with a new loan amount of $280,000. The existing lender's title insurance policy was for $250,000. Using Florida's reissue rate of $2.00 per $1,000 for the additional coverage, what is the cost for the new lender's policy?
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A deed transferring Florida real property in Pinellas County recites consideration of $143,500. What deed documentary stamp tax is due on the deed when it is recorded?