Real Estate Title Options In Florida

How you hold title to real estate affects how you can use the property and how you can distribute it upon your death.  The differences are subtle but important.  Full service title agencies, like Title Junction, can provide valuable insights about these differences as well as provide escrow and Cape Coral and Fort Myers notary services for your real estate transaction.

There are Three Main Options for Holding Real Estate Title in Florida

In Florida, four basic types of property ownership exist.  The type of ownership you select is sometimes referred to as “holding title” to a property and has important implications for your use of the property. Here we set out three of them.

Joint Tenancy with Right of Survivorship provides each owner with  an equal interest in the property and allows the property to pass to the surviving owner, uncontested, if the other owner dies.  The property is not willed away and does not pass to heirs of the deceased.

Tenancy in Common titles are similar to Joint Tenancy but they do not offer the Right of Survivorship.  With this type of title, each owner has a stated interest in the property.  Property shares, or interest, may be equal parts, or unequal.  While both owners survive, they have 100% use of the property no matter what their actual share percentage is.  An owner cannot sell his or her portion of the property without the other owners’ permission, but they can transfer their interest in the property at any time.  The key element of Tenancy in Common ownership is that owners can will the property away upon their death.  It does not automatically pass to the co-owner.

Tenancy in the Entirety is also called Community Property and is only available to married couples.  Each couple has a 100% interest in the property and must have the consent of their spouse to transfer ownership. Upon the death of one spouse, the surviving spouse automatically retains the property.  Tenancy in the Entirety is not used throughout the United States, but is is a recognized form of title in Florida.

 

We are not attorneys, the information contained in this blog post is provided for educational purposes only as well as to give you general information and understanding. It should not be considered or construed as legal advice.

Closing Disclosure Form (HUD1) – FORM

New forms, new ways for Fort Myers and Cape Coral Closings. The Consumer Financial Protection Bureau (CFPB) has issued new rules nationwide for closing loans. The new rules and forms will allow consumers to better understand what they are getting into in terms of the loan and obligations.

The new  form will now have to be given to the client three business days before they close on the loan. This replaces the HUD1/settlement statement.

Take a look at the new CLOSING DISCLOSURE FORM for changes.

The new rule and forms go in to effect as of August 1, 2015.

Still time to review and get to know these so you feel comfortable. Call Jennifer Ferri at Title Junction today for a FREE review – 239-415-6574.

Loan Estimate Form (GFE) – FORM

New rules across the board even for Cape Coral and Fort Myers closings. The Consumer Financial Protection Bureau (CFPB) has released a new rule regarding disclosure for loans. This rule produced new forms that will replace existing ones to help consumers make clearer decisions before closing on a loan.

This form will now be given to clients by their lender within  three business days after a loan application is submitted.

Rule Effective starting August 1, 2015.

The new LOAN ESTIMATE FORM is available to view here.

Need assistance navigating through the rules, the process or the document, call Jennifer Ferri today @ 239-415-6574.

The NEW Loan Estimate Form and Closing Disclosure Form

Just when you thought you knew everything, it all changes again. This will effect those who are in Cape Coral or Fort Myers as well. On November 20, 2013, the Consumer Financial Protection Bureau (CFPB) issued a rule to replace existing federal mortgage disclosures with new ones that are easier to understand.

The rule improves the way consumers receive information about Cape Coral or Fort Myers mortgage loans, both when they apply and when they’re getting ready to close. When you apply for a mortgage, you get disclosures that explain the terms. The new mortgage forms will help you understand your options and avoid costly surprises at the closing table.

The rule states that consumers must receive their Closing Disclosure three business days before closing on the loan so they have time to review it. The final rule also limits the circumstances in which consumers will have to pay more for settlement services than the estimate they received.

The Final Rule includes the new Closing Disclosure Form that will replace the current HUD-1 & Closing Statement.

This rule is effective August 1, 2015. The final rule applies to transactions for which a  mortgage broker/lender receives an application on or after that date.

Have a look at the new Loan Estimate Form and the Closing Disclosure Form.

Title Junction is here to answer any questions you have and guide you along in the process. Call me today for the answers you need most!

 

Top 4 Real Estate Closing Documents you should read through

When you are selling or buying a home you can almost always expect a mountain of paperwork to sign throughout the process and at the closing table.  And if you are like most, you don’t read every document before signing it.  However, there are a few documents you are going to sign throughout the process that you should definitely read fully and understand before signing.

1.  Purchase Agreement – This is your “contract” or “agreement of sale”.  This is definitely one of the most important documents in the transaction.  This spells out all the important details such as a financing contingency, inspection contingency, appraisal contingency, sales price, and also what each party, the buyers and the sellers, are paying in regards to closing cost.

2.  Title Commitment – The title commitment makes sure the property you are buying is free and clear of all liens and legal encumbrances. A title search is completed to prepare the commitment to insure. This will allow all parties to see what needs to be completed before you get to the closing table and clearly sets out any title issues.

3.  Promissory Note – It is just as is sounds.  It states that you promise to pay back the loan on your property or the bank is coming to get it. It details all of your loan terms, from the amount to the date to pay.

4.  Property Deed – This document lists on it the owner of the property whom is giving their interest to the new buyer or borrower, along with a legal description of the property.  The deed also gets recorded at the county courthouse to become public record to let everyone know who owns the property.

It is very important that you are aware of these documents and what they mean. Your realtor and your title company should be able to review these with you.