Question 1

How does a Florida preliminary title report differ from a title commitment?

Accepted Answer

Distinction: preliminary title report (also called a title abstract): a summary of the title history and current condition; provides information but does not commit the title company to issue insurance. Title commitment: a binding offer by the title company to issue a title insurance policy, subject to: the requirements listed in Schedule B-1 (conditions that must be met before the policy is issued, such as: paying off existing mortgages, obtaining a survey, and recording certain documents), and the exceptions listed in Schedule B-2 (items that will not be covered by the policy). In Florida: the title commitment is the standard document used in closings (not the preliminary title report).

Question 2

What are the schedules in a Florida title commitment?

Accepted Answer

Schedules: Schedule A (identifies: the date of the commitment, the type of policy (owner’s or lender’s), the proposed insured, the amount of coverage, and the current owner of the property), Schedule B-1 (requirements: conditions that must be satisfied before the policy is issued; these typically include: recording the deed, paying off existing liens, and obtaining a satisfactory survey), and Schedule B-2 (exceptions: items that will NOT be covered by the policy; these include: standard exceptions and specific exceptions identified in the title search). The buyer should review all schedules carefully with their attorney.

Question 3

How are title issues resolved before closing in Florida?

Accepted Answer

Resolution: lien satisfaction (existing mortgages and judgments are paid from the sale proceeds at closing), curative documents (documents that resolve title defects: corrective deeds, affidavits of identity, releases of lien, and death certificates), quiet title action (if the title defect cannot be resolved through curative documents, the parties may need to file a quiet title action to clear the title; this can take 2-6 months), and title endorsements (the buyer can purchase endorsements that provide additional coverage for specific risks). The title company and the buyer’s attorney work together to resolve all title issues before closing.

Preliminary Title Report: in Florida

Florida Preliminary Title Reports

Report vs. Commitment

Commitment Schedules

Resolving Issues

Related Terms

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