Title/Closing Services

Foxfire Realty is partnered with Ocala Land Title – a very competitive and professional title company in Marion County. Their offices are located just across the street from Foxfire Realty’s main office in downtown Ocala. Ocala Land Title and Foxfire Realty work hand in hand on a daily basis and their title agents are very familiar with our agents and our company, so we are able to work together to resolve any problems in the closing of your real estate transaction as quickly and painlessly as possible. They provide title insurance and professional settlement services for home buyers, sellers, real estate agents, brokers, mortgage lenders, commercial property professionals, home builders, developers and legal professionals.

In Florida, it is traditional for property sellers to choose the title company that performs their closing. However, sellers are under no obligation to use the company suggested by their real estate agents.

What closing services does the title company provide?

Receives and processes deposits
Hold funds in escrow
Performs title search and examination
Undertakes the clearing of title, including ordering the payoff for any and all liens that affect title
Issues title insurance to protect against future legal problems

Holds the escrow deposit
Conducts the search and examination of title
Issues a title insurance commitment
Prepares all the closing documents
Obtains payoffs on any outstanding debts
Conducts the closing transaction
Disburses funds to all parties
Records all required documents
Issues the title insurance policies
Coordinates the closing with all parties involved, including the buyer's lender, ensuring a smooth closing and a good experience for all involved.

After the contract is signed, the title company begins preparing for the transfer of the property at the closing. On the closing date, the property is transferred into the name of the buyer, and the buyer takes possession. The buyer and seller sign all the closing paperwork, and at this time the title company transfers the funds to the seller. If the buyer and/or seller is not local and will not be attending the closing in person, the title company will have previously sent the closing documents to the buyer via overnight mail. The buyer/seller then signs this paperwork in front of a notary, and sends everything back via the provided overnight mail envelope in time for it to arrive before the closing. Recently Florida has allowed for the entire closing to be done remotely with electronic signatures. The title company does not execute the returned documents until the other party signs their documents as well and the buyer or their lender provides all purchase funds in full.

What is Title Insurance?

Title insurance is an insurance policy that the seller provides to the buyer. It assures both the buyer and seller are protected from losses that could result from any clouds on the title (defects on the title or conflicting claims of ownership) found in the future. The Title insurance policy is issued after a search of the public records is performed and all relevant documents have been reviewed by the title examiner and all necessary documents have been executed and recorded in the public records. When purchasing the property with a mortgage, the lender will require that the buyer purchase a similar title insurance policy to protect the lender from clouds on the title. The price of the policy will vary by the purchase price of the property – as an example, the title insurance on a $100,000 sale would typically be about $575 for the seller. When the lender’s policy is purchased at the same time and from the same title company, it is called a simultaneous issue policy. Title insurance for a simultaneously issued lenders policy on a $100,000 sale would typically be about $150 for the buyer. Most lenders will also require endorsements to the standard mortgage coverage which are also paid for by the buyer.

Even with the search and examination performed by experienced title examiners, substantial defects may not be discovered which could potentially cause losses. This is why the one time charge for title insurance at closing is designed to protect the buyer, seller, and lender continuously into the future.

Examples of defects or “clouds” on the title include:

Clerical errors

A forged will, deed, or release

Undisclosed or missing heirs, including spouses

Deeds executed by persons of unsound minds

Deeds executed by minors

Deeds executed under expired or invalid power of attorneys

Liens for unpaid taxes

Liens for unpaid estate, inheritance, income or gift taxes

Judgments against previous owners

Deeds by persons supposedly single, but in fact married, including secret marriages and invalid divorces

Invalid deed delivered after the death of the grantor

Unrecorded easement

Improperly probated wills

Fraudulent impersonations

False affidavits

In the event such a claim arises in the future, title insurance is there to protect you against these claims. After the transaction has been completed, and a title policy issued, you are protected from claims made on your title. If a claim was made, the insurance company will defend your title and bear the cost of settling any valid claims made on the property up to the full face value of the property.

What are the typical closing costs associated with a real estate transaction?

There are many variables associated with costs actually charged in a real estate closing. For instance, a cash deal can be much easier to close than one involving mortgage financing on the part of the buyer.

Some closings involve out-of-state sellers and / or buyers where the closing documents are executed and sent back, via US Mail or overnight shipping (FedEx). These closings are commonly referred to as “mailaways”.

Although many costs associated with closings are similar, determining exact costs can only be computed by discussing the specifics of your closing with a title closing agent.

Recording Fees. Each closing will incur charges for recording of documents, doc stamps, and intangible taxes, which are based on the number of document pages to be recorded, the sales price, or the loan amount. These charges are best determined at the time of closing.

Property Taxes. Are usually prorated between seller and buyer, but this depends on the terms of the contract.

Miscellaneous Charges. Charges such as homeowner association fees, condominium fees, homeowner and / or flood insurance premiums, survey reports, termite inspections, etc. will be charged and show on the settlement statement. These charges vary by property and are best determined by your title agent prior to closing the transaction.

Closing Costs. These are all the costs incurred by the title agency for its administrative work in preparing and closing the transaction. Overnight charges and file processing or storage fees are bundled into one figure referred to as “Closing Costs.” These costs can vary greatly between title agencies, depending on the type of transaction.

Buyer Specific Costs:

Lender’s Title Insurance (if financing the property) as described above. While the seller provides you with a title insurance policy to assure that both the buyer and seller are protected from losses that could result from any clouds on the title (defects on the title or conflicting claims of ownership) found in the future, when a buyer is purchasing the property with a mortgage the lender will require the buyer purchase a similar title insurance policy to protect the lender from clouds on the title. Since the title company is already preparing title insurance for the seller, they are able to offer a reduced rate for the lender’s title insurance. The price of the policy will vary by the purchase price of the property – for a $100,000 sale, the title insurance would typically be about $150.

Document Stamps on the Mortgage (if financing the property). The State of Florida charges a documentary stamp tax on mortgages, levied at the rate of $0.35 per $100 (or portion thereof) on mortgage documents and liens against real estate. For a sale with a $100,000 mortgage, the doc stamps would be $350.

Intangible Tax on the Mortgage (if financing the property). The intangible tax is a one-time tax on intangible personal property, levied on obligations for payment of money which are secured by a mortgage or other liens upon real property located in the state of Florida. This is levied at the rate of $0.20 per $100 (or portion thereof). For a sale with a $100,000 mortgage, the Intangible Tax would be $200.

Appraisal (if financing the property). The lender will require an appraisal to ensure the land is worth its purchase price, and can be sold to cover losses if you default on your mortgage While the appraisal fee is typically paid by the buyer, the lender chooses the appraiser to be sure it won't be biased in the buyer's favor, as appraisers must be a neutral party. Home appraisals typically cost $300-$375, but land appraisals can cost more, depending on the size and type of property because they are much harder to appraise than a home and with more variables.

Survey (buyer’s option, or if financing the property). Lenders will require a survey to ensure the property lines are in fact where they are assumed to be, that there are no encroachments from the surrounding properties, and that there is actual legal access to the property. However, it is still a very good idea for a buyer to purchase a survey even if they are paying cash, to make sure there is not a problem that will require them to sell the property at a steep loss, if they can ever even sell it at all. A simple survey will usually cost $300+, depending on the property.

Title Company Closing Fee. This is where the title company gets paid for their services. They perform the title search, draw up all the closing documents and explain them to all parties, handle the collecting of closing costs and distribution of monies, ensure that the new titles, deeds and other documents are filed with the appropriate entities, and conduct the formal closing, whether in their office or electronically for either party that is not present. For the buyer their fee is typically around $475.

Seller Specific Costs:

Title insurance. This is an insurance policy that you as the seller provide to the buyer. It assures that both the buyer and seller are protected from losses that could result from any clouds on the title (defects on the title or conflicting claims of ownership) found in the future. When purchasing the property with a mortgage, the buyer purchases a similar title insurance policy to protect their lender from clouds on the title. The price of the policy will vary by the purchase price of the property – for a $100,000 sale, the title insurance would typically be about $575.

Document Stamps on the Deed. The state of Florida charges a documentary stamp tax, levied at the rate of $0.70 per $100 (or portion thereof) on documents that transfer interest in Florida real property. For that same $100,000 sale, the doc stamps would be $700.