title insurance terms title partners of south florida

Common Title Insurance Terms

Title insurance protects both the buyer and the lender from financial loss in case there is a problem with the title to the home in the future. There is lender’s title insurance and owner’s title insurance. Lender’s title insurance (insurance that protects the lender) is required by Florida law. Although owner’s title insurance is not required, it is highly recommended.

Title Partners of South Florida serves Broward County, Miami-Dade County, and Palm Beach Counties with the title services when they buy or sell property. We perform title searches, sell title insurance, and handle all of the closing paperwork and filing of deeds. In this blog post, we’ll go over some common title insurance terms you should know that will help you the next time you buy or sell property. Contact us today!


Clear Title

A clear title is what you are hoping for when a title search is performed on a piece of property you wish to purchase. A clear title means that there are no defects or impediments found that could prevent you from purchasing or selling the property. It also means that there are no foreseeable problems with the title in the future.


A cloud is what you do not want found in a title search. Like a cloud that hovers over you and casts a dismal, dark shadow, a cloud on a title means that something has been found that could prevent the sale of the property or the purchase of the property because there might be a claim on the property, or there is an outstanding lien on the property.

Earnest Money

Earnest money is exactly what the name implies. When you go to purchase a home and sign a contract to do so, you are required to put down earnest money to show that you are earnest or serious about buying the home. Otherwise, what would prevent you from changing your mind down the road? Earnest money can be forfeited by the person who wishes to purchase the home if they do back out without reasonable cause (such as they can’t obtain financing for the home). Almost always, the reasons that are allowed to receive your earnest money back are spelling out in the buyer’s contract for the home.

Your house title company, such as Title Partners of South Florida, usually holds the earnest money for you in escrow until closing. Then your earnest money will be applied towards the purchase of your home. Usually, the amount of earnest money is not all that high, but it’s enough to ensure you are serious about purchasing the home.

Title Search

This is one of the most important jobs of a title search company. Once you agree to purchase a home, a title search will be ordered usually by your real estate agent. This must be completed before any further action is taken on the purchase or sale of the home or property. This is where your chosen title company, such as Title Partners of South Florida, will compile all existing title information from official or public records on your behalf. Once complete, a title search report will be issued to all parties involved that will detail the findings. This will also show if you have a clear title or a clouded title.

Adverse Possession

Adverse possession to many people does not make sense. Adverse possession is when someone who legally does not own land or property can make a claim that they do own the land or property and then this claim is granted. This is commonly known as squatter’s rights. For instance, if someone moves into an unoccupied home that is not theirs and lives there for years and then one day the owner shows up to take possession, the squatter (or person living in the home) can claim ownership through adverse possession. This is because there is a certain period of time for the homeowner or landowner to take action. If they don’t, the land ownership is then forfeited. This is a tradition handed down from England, who got it from other peoples on through the ancient Romans.


A deed to a piece of property or a home is the written document that states who the owner of the property is. A deed is what is used to transfer the title of a property (a title is the legal way to say you own a piece of property). Deeds must be recorded in a court of law and are fully binding. Your title company handles the deed transfer process after all of the legal purchase documents have been signed.


Title Partners of South Florida strives to create a memorable closing experience for our clients. We do our due diligence when a title search is ordered and are always available to answer your questions. We work closely with real estate agents, providing them with amazing benefits through our post closing marketing software that will keep them at the top of their former clients’ minds for the future with automated email information and alerts if their home is listed. We offer e-sign services for the convenience of our clients so that you can sign remotely if need be. We also have an in-house attorney for legal interpretations of your questions.

Title Partners of South Florida does our best to ensure your home buying experience from start to finish is the best. Our website is a wealth of information, offering homebuyer’s closing information and answers to your more frequently asked questions. Our mission is to make your home loan closing as smooth as possible. And afterwards, we’ll have your loan closing documents conveniently available online. We are prompt with our service and do our best to make the mountains of paperwork you have to sign at closing fun. We frequently provide snacks and drinks, and we have a kid center to keep your kiddos entertained. Contact us today to get started!

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