It is local custom in Miami that the buyer chooses his title company. At Condoideas we will provide you with several title agents from which you can choose.
The title company often acts as escrow agent (holding on to your deposit). The title agent prepares all the paperwork of the transaction and distributes the lenderís proceeds to the correct parties. He is also the title policy writer.
A title policy is insurance you donít want to be without. It can amount to 1% of the purchase price. It ensures against a cloud on the title due to incorrect information provided by the title company. It protects your ownership rights to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales (name mistake..). it is a one time cost based on the purchase price and it is paid by the buyer.
The are two types of policies. The lenderís title policy and the ownerís title policy. The title company researches the chain of ownership to make certain that the seller has the right to sell and doesnít have someone else on the title who is not on the sales contract.