The “E’s” of Home Closings
Title Partners of South Florida, a title company for home purchases, has been taking a look at common home loan closing terms. We’ve learned about deeds, adverse possession, title searches, earnest money, and more. Today, we thought we’d take a look at more “E’s” of title insurance terms, in addition to earnest money since there are a lot of them that are often confused.
Title Partners of South Florida serves Broward County, Miami-Dade County, and Palm Beach County with the best title insurance and title search services. Contact us today to learn more!
THE “E’S” OF HOME CLOSINGS
If you are in the home building or trades, odds are you’ve heard of this term. Easements are the right of others to use your property. Typical people who have rights to use your land, but who do not own it, are utility companies so that they can put in underground pipes for sewers or water. Easements are very limited use and are usually only granted to companies. However, property owners can agree to private easements, for example, building a road in order to reach a pasture. However, compensation is often involved when an easement is between private parties.
Eminent domain is usually not often welcomed, but it is usually necessary for the benefit of all. Eminent domain is when the government takes privately-held property for public purposes. This right is most often exercised when it comes to building roads or expanding existing roads. However, the government must give you fair compensation for the land since they are in effect purchasing it from you even though they are really taking it from you. This is different from an easement where you still own the land that the pipes are running through. Here, you are no longer owner of the land.
Encroachment is where someone else has taken your property for their use without permission. Examples include where a building is built on your property or part of a building hangs over your property. Encroachment can also be when a bush or tree is planted on someone else’s property, or a fence is constructed. Sometimes this encroachment is intentional, like in a property dispute, or unintentional. Encroachment can also occur when something hangs over government-owned property, such as roads and driveways. In this case, the government has the right to remove your structure with no compensation.
In most cases, encroachment is inadvertent, which means you accidentally build upon another person’s property. Title Partners of South Florida recommends that you always have your property surveyed professionally before you undertake any building project on your land, especially if it’s close to the property line of your neighbor.
Escrow is an important part of the title process and is often misunderstood. Escrow accounts are typically held by third parties to a real estate transaction of monies received. For example, your earnest money, or money you put down with your home purchase offer in order to show the seller you are serious, is held in escrow usually by the title company until the closing of the loan when the funds will be applied.
Once your home loan closes, this first escrow account is closed and a second escrow account is opened by your lender, which will be in effect throughout the life of your loan. While an escrow account is convenient for the homeowner, it’s really an account invented for the express purpose of ensuring you pay your property taxes and homeowners insurance so that the lender’s interest (i.e. your home) is always protected. For example, if you didn’t pay your property taxes, you could be at risk for losing your home, which then means your lender will not get paid for your mortgage. Usually, an escrow payment is added on to your monthly mortgage payment that goes into this account to pay your taxes and insurance.
Endorsement specifically refers to and affects your title insurance. An endorsement is an amendment if you will or modification to your title insurance policy that changes the coverage of the policy. This is most likely something that would be required by your lender in order to ensure you have the right lender’s title insurance coverage. However, title endorsements can also be requested by the owner in order to cover more specific issues. Title endorsements can be quite helpful and can come in handy. For example, you can purchase an encroachment endorsement, which would cover you financially if indeed a neighbor did demand you move your building that is on their property line. There are many title endorsements available, and your house title company, such as Title Partners of South Florida, can help explain to you all of your options and which ones may be a good idea based on your specific property.
OFFERING THE BEST HOUSE TITLE SERVICES
As a top-rated title company for home purchases, Title Partners of South Florida serves Miami-Dade County, Broward County, and Palm Beach County with title services, which includes title insurance, title searches, and home closing. We understand that there are many legal issues involved in buying or selling a home, and we are here to help. We offer in-house attorneys as well who can help you answer all of your legal questions.
However, our experienced title insurance representatives can help you in every step of the home buying process. We can help you with title insurance and with figuring out escrow, home inspections, and more. We are well-versed in the mortgage process as well and can point you in the right direction. Our mission is to help you as much as we can so that you are worry-free and can focus on all of the details of moving. We want to create a pleasant home closing experience for you as you open this new chapter of your life.
Title Partners of South Florida offers knowledge, experience, and a superior customer experience that is rare in the home buying industry. Whether you are a real estate agent looking for the best title search company or you are a homebuyer, contact us today to get started!