Title insurance protects property owners and lenders against title defects and competing claims of interest over the property. Title insurance provides coverage for title defects discovered during or after the insured’s ownership of the property. Generally, lenders require borrowers to purchase a title insurance policy as a condition for issuing a mortgage loan.

In Florida, the party responsible for paying the cost of title insurance varies by county. The title insurance premium is a one-time payment, paid at the time of closing.

The term “Marketable Title” (or clear title) to real property is title in fee simple free from litigation and defects. Marketable Title does not assume the absolute absence of a defect in the title; instead, it represents title to property that a person of reasonable prudence would accept for its fair market value.

In Florida, Marketable Title is determined after a review of the record of ownership (i.e., a chain of title) extending back 30 years from the recording of the claim. The chain of title traces back to confirm that no outstanding or unresolved claims against the title exist.

Florida’s Homestead Exemption provides homeowners a tax exemption of up to $50,000 for their permanent residence in Florida. Under Florida’s “Save Our Homes” assessment limitation, one year after the property becomes the homestead, the assessment for each following year cannot increase more than 3 percent or the percent change in the Consumer Price Index (CPI), whichever is less. The difference between the market value and the assessed value(i.e., assessment difference) of the homestead property is expected to increase over time and save the homeowner a considerable amount in property taxes. Notably, a homeowner may be able to transfer or “port” all or part of the assessment difference to a new Florida homestead. This concept is known as Portability. Homestead also protects the homestead property from creditors of the homeowner. Under most circumstances, a creditor cannot force the sale of the debtor’s homestead to satisfy a money judgment against the debtor.

In order to qualify for Florida’s Homestead Exemption, the homeowner must be a permanent Florida resident and the homestead property must be the resident’s primary place of residence. A second home or investment property will not qualify as homestead property. The owner of the homestead property must also be a natural person and the property cannot be titled in the name of a corporation, limited liability company, or partnership. Homeowners should consult their respective county’s property appraiser for any additional requirements to applying for homestead.

A Post-Occupancy Agreement is an agreement where the buyer of a property agrees to allow the seller to stay on the property past the closing date. The parties can determine the terms of the agreement while negotiating the Real Estate Contract or during the closing process. All parties will sign the agreement at or before closing.

The Post-Occupancy Agreement promotes flexibility and permits the seller more time to remain on the property to better align with the preferred timeline of the parties. Notably, the period of post-occupancy cannot exceed 60 days if it is a mortgage transaction. Under a Post-Occupancy Agreement, the seller becomes liable to the buyer for any injuries, loss, waste, or damage to the property post-closing.

A Post-Occupancy Agreement is often considered a useful device for promoting the smooth transfer of property ownership from seller to buyer after closing.

A lien is a security interest attaching to a property to secure the payment of a debt or performance of some other obligation. All liens must be satisfied before closing so the property transfers with clear title to the buyer. Overall, liens can create complications for a real estate transaction and affect your ability to sell a property.

Liens break down into voluntary liens and involuntary liens. A voluntary lien is created by the homeowner agreeing or consenting to place a security interest on the property. The most common example of a voluntary lien is a mortgage, which allows the lender to foreclose on a property if the borrower fails to make timely payments or breaches some other condition in the agreement. An involuntary lien is founded in law and allows creditors to access your assets to satisfy certain debts. Involuntary liens are due to unpaid obligations, often seen in the forms of mechanic’s liens, tax liens, and judgment liens.

If you are considering selling real estate, it is crucial to have a licensed title agent conduct a municipal lien search for your property to determine whether there are any liens preventing your sale.