Service and Products Tailored to Customers’ Needs
NATIONAL TITLE and ABSTRACT COMPANY serves real property Owners and Lenders, Buyers and Sellers, as well as other individuals and institutions involved in real estate transactions, providing the finest quality services and products for our customers’ and business partners’ needs. Through our Abstract Department we are able to thoroughly search and examine real property records and provide Abstracts of Title; with our agents and customers we are able to provide for any Title Insurance needs; and through our Closing Department we are able to finalize your real estate transactions. We also have the ability to act as “Escrow Agent”.
Oldest and Most Complete
“Title Plant”
in Miami-Dade County
NATIONAL TITLE and ABSTRACT COMPANY can provide the best service because it has the best resources.
NATIONAL TITLE and ABSTRACT COMPANY is the exclusive owner of the oldest complete Miami-Dade County “Title Plant”, containing tens of thousands of bits of information relating to South Florida real properties. It is a cross-referenced index of the “Legal Descriptions”of real properties and recorded documents filed in the “Public Records” relating to those described properties. These records establish ownership through “Chains of Title” as old as Miami itself.
Originally a hand-written database on index cards and in books, developed over decades, our Title Plant has been passed down through the National Family of companies for generations. These valuable paper records, many brittle with age, are a great resource but by their very nature, they are difficult to manage and care for, subject to loss or mis-filing, and generally endangered as over time and especially in the event of catastrophe these valuable records may disappear.
NATIONAL TITLE and ABSTRACT COMPANY now through “Scanning Technology” is bringing our historic, hand-crafted, Title Plant into the twenty-first century by digitizing this historic and unique data-base, increasing durability, productivity, efficienty and availability of this unique resource.
NATIONAL TITLE and ABSTRACT COMPANY has the greatest access to the most complete real estate title records available. Our expert employees have combined experience of well over one hundred years in reviewing these records to bring our customers and business partners the confidence they require to enter into or provide support to real estate transactions.
Whether you are a customer buying your first home, engaging in a commercial real estate transaction, or a professional looking for detailed research and information to enhance or supplement your own product, NATIONAL TITLE and ABSTRACT COMPANY is your best resource for the professional services you require.
“Title Abstracting” Services Department
NATIONAL TITLE and ABSTRACT COMPANY through its “Title Abstract Department” and “In-House Attorneys” uses our Title Plant and other resources to search the chain of title to real property you are interested in, and carefully examines that chain to determine who may claim an interest in it. We produce a report of the history of the chain of title called a “Title Abstract” or “Abstract of Title”. Our attorneys are available to assist our customers with legal issues that may arise.
What is a “Title Abstract”?
Reports in the form of a “Title Abstract” or “Abstract of Title” are used by owners, sellers, buyers, lenders, insurers and investors to evaluate real property and determine whether there are any “Title Defects” (claims or encumbrances including things like city or county liens, liens filed by those who worked on the property and did not receive full payment, liens for unpaid utility bills or condominium maintenance fees, mortgages, and in rare cases, alternative or “wild” deeds that may be the result of mistake or fraud). These sorts of things created defects in title to real property, which must usually be corrected before sale or before a loan collateralized by the real property is closed or funded.
Why Obtain a “Title Abstract”?
Defects of title are said to cause a “Cloud on Title” and research resulting in an “Abstract of Title” will illuminate such defects alerting potential buyers, insurers, lenders and investors to problems in the “Chain of Title” or otherwise encumbering the real property so that informed decisions can be made as to how to proceed in “Clearing the Cloud on Title”. On the other hand, review of a “Title Abstract” or “Abstract of Title” is also required to show that a certain “parcel” of real property has “Good and Clear Title”.
“Title Insurance” Services Department
NATIONAL TITLE and ABSTRACT COMPANY, through our customers and agents, we are able provide “Title Insurance Commitments” and “Title Insurance Policies” to lenders, borrowers and buyers of real property, including financial institutions, local governments, attorney and non-attorney title agencies and individuals. We do this in association with underwriter Old Republic National Title Insurance Company (http://www.oldrepublictitle.com) and our on-site representative of Old Republic National Title Insurance Company who works with us at NATIONAL TITLE and ABSTRACT COMPANY to better serve our customers’ and business partners’ needs.
However NATIONAL TITLE and ABSTRACT COMPANY is not an insurance company.*
Contact our Title Insurance Department.
What is a “Title Insurance” Policy?
“Title Insurance” through a “Title Insurance Policy” protects from loss, or “insures”, the Buyer/Owner of real property and the Lender who accepts real property as collateral for a loan from claims of others contest ownership rights in the real property which is insured.
Lenders generally require “Title Insurance” in order to issue a mortgage, and owners frequently purchase it for their own protection during the process of purchasing real property. A “Title Company” will generally search the Public Records and issue a “Title Insurance Commitment” stating “Title Policy Conditions” and “Title Policy Exceptions” under which coverage will be afforded. Upon agreement a “Title Insurance Binder” may be issued. Issuance of such a commitment or binder has the effect of binding the “Title Company” to provide a “Title Insurance Policy” subject to the expressed “Title Policy Conditions” and “Title Policy Exceptions” required for issuance of a “Title Insurance Commitment”, “Title Insurance Binder” and “Title Insurance Policy”.
“Title Policy Conditions” are generally things that must be done in order for the “Title Insurance Policy” to be issued (for example, payoff of a Seller’s current Mortgage on the real property to be insured; provision of evidence of a Buyer’s new Mortgage on the real property to be insured; payment of all outstanding taxes or assessments against the real property to be insured; provision of a survey of the real property to be insured; or provision of a copy of the Deed that will be used to transfer ownership of the real property to be insured.
“Title Policy Exceptions” are those items and matters that will not be insured, that is, covered, by the “Title Insurance Policy”. These may include recorded restrictions or “Covenants” as well as valid claims or liens against the real property, or easements effecting it, which were not recorded in the Public Records at the time a Title Search was done or the Abstract of Title was prepared.
Issuance of a “Title Insurance Commitment” or “Title Insurance Binder” indicates to a prospective Buyer and Lender that a “Title Insurance Policy” will be issued upon satisfaction of the “Title Policy Conditions”, with the understanding that “Title Policy Exceptions” will not be insured.
Why Obtain a “Title Insurance” Policy?
A “Title Insurance Policy” offers protection from loss when ownership rights are contested. An “Owner’s Title Insurance Policy” (or “Owner’s Policy”) ensures marketable title to real property, that is, it ensures that the owner has “Good and Clear Title” to the real property. A “Lender’s Title Insurance Policy” (or “Lender’s Policy”) ensures the value of real property pledged as collateral in a Mortgage transaction and ensures a proper lien position. Such policies are issued only once per transaction and generally require only one single payment, at the time of “Closing” the purchase and sale transaction. There are always certain “Requirements” and often there are certain “Exceptions” to the issuance of a “Title Insurance Policy”, that is, matters that will not or can not be insured.
Buyers/Owners frequently purchase a “Title Insurance Policy” for their own protection, and Lenders generally require “Title Insurance” in order to issue a mortgage to be certain that in the event of a default on their loan, their interest in the real property serving as collateral is second only to the owner’s interest. With a “Title Insurance Policy” in place, the Lender’s claim through a “Mortgage” (which created a “Mortgage Lien” on the real property serving as collateral) is insured so that it comes before any other (un-excepted) claim, that is, that it has “Priority” over other claims.
Insurers issuing such policies, in turn, rely on the Abstracts of Title they obtained, and on “Prior Title Insurance Policies” (or “Prior Policies”) that may have insured a certain property through a certain date. New Title Insurance Policies are written after a thorough search and examination of the real property title in question, and usually occurs in association with a real property purchase/sale or mortgage transaction.
NATIONAL TITLE and ABSTRACT COMPANY can help obtain sort of Title Insurance Policy required by individuals and institutions involved in real property transactions.
What is a “Mortgage”?
While NATIONAL TITLE and ABSTRACT COMPANY is not a “Mortgage Company” or “Mortgage Broker” and while we do not offer “Mortgage” products or render advice to our customers regarding “Mortgages”, NATIONAL TITLE and ABSTRACT COMPANY can create “Mortgage Documents” (also called “Lender’s Documents”) for the benefit of our customers and business partners, subject to their review and approval and in the context of real estate transactions.
NATIONAL TITLE and ABSTRACT COMPANY does often deal with lenders, borrowers and “Mortgage” related issues. So as an accommodation to our customers and business partners, we offer a brief explanation of what a “Mortgage” is and offer as well a general list of some of the more common types of “Mortgage” products available.
A “Mortgage” is conditional transfer of real property which serves as collateral or “security” against the repayment of a loan where the loan evidenced by a “Promissory Note” (or “Note”) (commonly called an “IOU”). Transfer of the “Title” to the pledged real property from the Borrower to the Lender occurs only upon failure of the Borrower to live up to the conditions of the “Mortgage”, that is, to repay the loan according to its terms.
A “Mortgage” is the document that creates a “Mortgage Lien” which is “secured” or “collateralized” by the real property – this means that in the event of a default on the loan by the borrower, the lender may have the right to take “Title” to the pledged real property to obtain satisfaction of the unpaid loan amount and any other costs that may be due.
Lenders may be private individuals or companies or banks or other lending institutions. In a mortgage transaction the “Lender” is the “Mortgagee” and the owner, as a “Borrower“ who pledges real property as collateral for the loan, is the “Mortgagor”.
A “Mortgage Broker” may be an individual or company that acts as an intermediary who, generally for a fee, obtains mortgages for others by finding banks or other lending institutions or private sources to lend money for a “Mortgage”. A “Mortgage Broker” may also take responsibility for collection and disbursement of funds. In many jurisdictions a “Mortgage Broker” must be licensed and is subject to governmental rules and regulations.
Because a “Lender”/“Mortgagee” has, through the “Mortgage”, an interest in the real property contingent on the repayment of its loan, the “Lender” will almost always require issuance of a “Title Insurance Policy” as a condition of making the Loan, because it protects the collateral accepted by the Lender from the claims of others. Title Insurance can also protect a home owner from claims against title to the real property brought against the owner by others. In order to obtain Title Insurance, an “Abstract of Title” is required.
NATIONAL TITLE and ABSTRACT COMPANY is not a “Mortgage Company” or “Mortgage Broker” and we do not offer “Mortgage” products and we do not render advice to our customers regarding “Mortgages”. NATIONAL TITLE and ABSTRACT COMPANY recommends that our customers and business partners always deal with licensed professionals.
If you are looking for a “Mortgage” product or for information regarding an existing “Mortgage”, you should direct your questions and concerns to a “Mortgage Broker” or attorney licensed to practice in the area in which you or the real property that is the subject of the mortgage is located.
Why Obtain a “Mortgage”?
Generally if one does not have sufficient funds to purchase real property, one needs a “Mortgage”. If you are fortunate enough to have sufficient assets to purchase real property without utilizing loaned funds, you do not need a “Mortgage”. However if you require a loan to purchase real property, you will almost always be required to obtain a “Mortgage”.
This is because most Lenders will require some collateral, that is, something of value that the Lender can receive in lieu of payment, if the Borrower defaults on the loan. Offering collateral is a means by which a Lender can “secure” the loan, that is, be sure of being paid back. When, in a loan for the purchase of real property (or to “Refinanance” a prior loan on real property), the thing of value offered to secure the loan is the real property itself, the loan is of the sort described as a “Mortgage”, a written document most often recorded in “Public Records”, which creates a “Mortgage Lien” on the real property that is pledged as security or collateral.
A “Title Search” will reveal a recorded “Mortgage”. Failure of the borrower to pay back the “Mortgage” loan according to its terms may result in a legal action (law suit) called a “Foreclosure” where the lender seeks a court order allowing it to either sell or take title to the real property so that it can recover the money it leant to the Borrower who defaulted on the “Mortgage”.
Types of Mortgages
NATIONAL TITLE and ABSTRACT COMPANY presents this partial list of “Mortgage” types as a convenience to our customers, business partners and potential customers to provide some basic, general information. This list is not a complete list of.
This list is not intended to be all-inclusive or to offer a complete explanation of the sorts of “Mortgage” products available in any state or country. If you are interested in a particular “Mortgage” or loan product you should speak to a lender, broker or attorney qualified and licensed in there area where you live or where the real property you are interested in is located.
the following basic description of mortgages and mortgage types.
Every type of “Mortgage” creates a “Mortgage Lien” on the real property that secures or collateralizes the Mortgage. If the borrower fails to pay back the loan according to its terms, the person or institution that made the loan may have the right to try and recover its loss of money by taking the borrower’s real property through a legal process called “Foreclosure”.
While all Mortgages have certain characteristics in common, there are many types of “Mortgage” products to choose from. Some of the most common sorts are:
“Fixed Rate Mortgages”. These are loans, payable over time, with interest, the “rate” of which interest is “fixed” for the duration of the loan, that is, the interest rate will never change. These sorts of mortgages are often offered for a term of fifteen (15) or thirty (30) years, but other time-frames are available depending on the lender. These are perhaps the most common sorts of mortgages, and in times when interest rates are low it is possible for a borrower to “lock in” that low interest rate for the life of the loan. While it may be a disadvantage when interest rates are high, borrowers may have the option of refinancing their property and paying off the high interest loan in favor of a new loan if interest rates drop. A significant benefit of a Fixed Rate Mortgage is that the borrower’s monthly payment of principal and interest will not change for the life of the loan and so is predictable and easily budgeted. All Fixed Rate Mortgages are completely “amortized”.
“Adjustable Rate Mortgages” also called “ARMs”. These are loans, payable over time, with interest, the rate of which interest is “Adjustable”, that is, it fluctuates, in accordance with pre-set conditions negotiated before the loan is finalized. It may remain fixed for a certain period, then “adjust”; it may increase or decrease monthly; semi-annually; annually; or in some other fashion. Typically the initial interest rate is low, but will increase over time. While some sort of pre-set formula is often used to calculate the manner in which interest will be adjusted over the life of the loan, there are often unpredictable variables included in those formulas. This may lead to substantial changes in the monthly amount due to the lender, resulting in difficulty in long-term budgeting and, to the unsophisticated borrower, may result in unpleasant consequences leading to economic distress. Adjustable Rate Mortgages are completely amortized.
There is a certain sub-class of “Adjustable Rate Mortgages” known as “Option ARMs”. Borrowers may choose from may payment options and rates of interest indexed in various ways. Often minimum payment options can result in negative amortization, meaning you are actually borrowing more rather than paying off interest or principal. These are complicated mortgage types and may be economically dangerous for uninformed borrowers.
“First Mortgage” means just what it says: it is a Mortgage that has priority over all other Mortgages and liens except as imposed by law. This term applies to borrowers who have more than one mortgage loan or to property encumbered by more than one mortgage lien, and typically refers to the mortgage with the highest priority or rank, that is, the one that will be paid first in the event of foreclosure. If sale of the real property in foreclosure does not generate sufficient funds to satisfy the First Mortgage, the borrower may be individually responsible to pay back the balance of the debt from other assets. On the other hand, if there is a “surplus” of funds, and no Second Mortgage (or other debt) to satisfy, those “Surplus” funds will be returned to the Borrower.
“Second Mortgage” means just what it says: it applies to borrowers who have more than one mortgage loan or to property encumbered by more than one mortgage lien, and typically refers to a mortgage with lower priority or rank than another mortgage, that is, it will be paid from sale proceeds after the First Mortgage has been satisfied, if there are sufficient funds – otherwise the borrower may be personally responsible to pay back the debt from other assets. If there is more than one Mortgage Lien on real property and the loan secured by a First Mortgage is paid off, the Second Mortgage will move up in priority to become a First Mortgage.
“Balloon Mortgages” (sometimes called “Interest-Only Mortgages”). These sorts of mortgages are not really “interest only” – but they usually require only the payment of interest, and not the payment of the principal loan, for a fixed period of time. However, when that time has run, the full balance, including the full amount of the principal loan and any unpaid interest and other fees, comes due in one final, usually large, payment. Thus while monthly payments may be small (like an un-inflated balloon) for a negotiated, fixed, term, at some point a large final payment (like a fully-inflated balloon) will be due. Borrowers know when they agree to this sort of mortgage the date on which the full amount will come due. These sorts of Mortgage products make sense to Borrowers who expect to receive a substantial sum at some future time, or who expect to sell their property before the final payment comes due and to use some or all of the proceeds to pay off the balance due, or to those who expect to re-finance the real property (that is, take out a new mortgage or other loan) before the final payment comes due.
“Home Equity Loans” are a class of loans against the “Equity” or value an owner has acquired in real property. If for example an owner bought property worth $100,000.00, paid $25,000.00 cash and took out a $75,000.00 mortgage, the “Equity” at the start of the loan is $25,000.00. If after a year the owner pays down the loan to a balance due of $70,000.00, an additional $5,000.00 “Equity” has been obtained by the owner, so that the total “Equity” becomes $80,000.00. Assuming the total debt reduces every month with monthly “Mortgage” payments, “Equity” increases every month. Equity can also increase or decrease over time as property value increases or decreases: so, if the real property was worth $100,000.00 at the time it was purchased but the market value has increased so that it would sell for $200,000.00 that increase in value adds $100,000.00 to the homeowner’s “Equity”. On the other hand of the owner bought real property for $100,000.00 but current market value is only $75,000.00 then the owner will have lost $25,000.00 of “Equity”. “Home Equity Loans” may be of a “fixed” interest rate, “adjustable” interest rate, or be simply a “Line of Credit” from which the borrower may draw money is needed. “Home Equity Loans” loans are inferior to an existing first mortgage, that is, if a foreclosure occurs, the first mortgage will be paid first, and the “Home Equity Loans” will be paid from the remaining funds.
A “Reverse Mortgage” (or “Lifetime Mortgage”) is a sort of “Home Equity Loan” with either a fixed or adjustable interest rate, available to seniors, aged 62 years or older, who have substantial equity in their home. Financially this arrangement is the opposite or “reverse” of a typical mortgage – instead of making monthly payments to the lender, the lender makes monthly payments to the borrower for life or for as long as the borrower resides in the home. A “Reverse Mortgage” is used to release home equity through regular tax-free payments to the homeowner by the lender. Repayment of the loan is generally through relinquishment of the home when the borrower moves or dies. A “Reverse Mortgage” enables elderly homeowners to use their home’s equity without selling their home or moving from it, however, generally the home does not pass to the homeowner’s estate or heirs upon death, but instead goes to the Lender to satisfy the loan.
“Bridge Loans” or “Swing Loans” are most often used when a homeowner has put a home up for sale with the intent of buying another home. If the first home has not sold, a loan of this sort is used to take existing equity from the first home and apply it to the purchase price of the second. As with all mortgages, the homeowner’s real property is used as security.
“Combination Mortgage” or “Piggyback Mortgage” refers to financing two loans: a “First Mortgage” and a “Second Mortgage”, which may be fixed rate or adjustable-rate Mortgages or some combination. This sort of arrangement often occurs when a borrower does not have sufficient funds to make a down payment and so takes one loan for the down payment, and another for the remaining purchase price.
“FHA Loans” or “Federal Housing Administration Loans” (sometimes referred to broadly as a “Government Mortgages”) are federally assisted mortgage loans available in the United States, which are insured by the “Federal Housing Administration” (“FHA”) and which are usually assumable. They are more properly referred to as “FHA Insured Loans”. These loans are extended by FHA-approved lenders and are tailored to assist borrowers unable to obtain approval for conventional home loans. They may have reduced down payment requirements compared to conventional mortgages and while there are funding limits, “FHA loans” are generous enough to assist qualified borrowers to purchase moderately priced homes located in the United States.
“VA loans” (sometimes referred to broadly as a “Government Mortgages”) are mortgage loans available in the United States only to veterans of the United States Armed Services possessing an honorable discharge and Certificate of Eligibility and, in certain cases, available to un-remarried spouses of deceased veterans. These loans, guaranteed by the United States Department of Veterans Affairs, are issued by qualified lenders and often have low or zero down payments and low interest rates. More appropriately termed “VA Insured Loans”, the Veteran’s Administration insures the lender against losses incurred due to default.
“Closing” Services Department
Typically real estate transactions involve a “Seller”, often referred to as “Grantor”, a “Buyer” often referred to as “Grantee”, and a “Lender”. Where the transaction is not one for sale and purchase, but rather one of “Re-financing”, usually an “Owner” and “Lender” are the parties involved. Finalization of these sorts of transactions are referred to as “Closings”.
NATIONAL TITLE and ABSTRACT COMPANY, serving as a “Closing Agent”, serves individuals, businesses and governmental entities, providing full title and closing services for residential and commercial purchase and sale transactions and refinancing transactions. Our experienced “Closers” are able to prepare and review the paperwork necessary to bring your transaction to a successful conclusion, and more importantly, they are able and willing to explain each and every document to the inexperienced purchaser or seller, so that our customers and business partners are fully informed of each and every detail of their transaction. Our Legal Department can draft or review documents necessary for all manner of real estate transactions, including “Buyer’s Documents”, “Seller’s Documents”, “Lender’s Documents” and “Escrow Documents” in addition to “Closing Documents”.
“Escrow” Services Department
NATIONAL TITLE and ABSTRACT COMPANY provides Escrow Services through maintenance of a State of Florida regulated “Escrow Account” so that, as an “Escrow Agent”, we are able to hold deposit, purchase and loan money and disburse it accordingly, at the proper time to the proper recipient(s). You can rest assured that your escrowed funds will remain safe and accounted for at all times. Disputes arising based on conflicting requests for escrowed funds will be handled in a manner authorized by Florida Law. Our Legal Department can draft or review “Escrow Documents” to help ensure your transaction closes properly.
Legal Department
NATIONAL TITLE and ABSTRACT COMPANY has in-house attorneys to assist us in providing our customers and business partners a full range of Title related services and products. Our Legal Department is able, in addition to interpreting matters discovered in the Public Records, to prepare and review legal documents important to your transaction and can draft or review documents necessary for all manner of real estate transactions, including “Buyer’s Documents”, “Seller’s Documents”, “Lender’s Documents” and “Escrow Documents” in addition to “Closing Documents”.
Speak with our General Manager, John Sanchez to assist in drafting particular documents tailored to particular needs. Note that Mr. Sanchez is not an attorney, but will coordinate your needs with our in-house attorneys.
NATIONAL TITLE and ABSTRACT COMPANY does not offer legal advice or services to its customers or business partners. If you require legal assistance you should consult a qualified legal professional licensed in the jurisdiction where you intend to do business. While NATIONAL TITLE and ABSTRACT COMPANY has licensed Florida attorneys on staff to assist us in providing complete title and abstract services to our customers and business partners, they generally do not, and can not, represent our customers or business partners in transactions in which NATIONAL TITLE and ABSTRACT COMPANY has any role because representation of more than one party involved in a transaction could constitute a conflict of interest.
Policies and Procedures
NATIONAL TITLE and ABSTRACT COMPANY has certain policies and procedures in place which are required to maintain our operational abilities and allow us to perform in a manner consistent with both regulations governing our services and products as well as with our responsibilities to our customers and business partners. Therefore, NATIONAL TITLE and ABSTRACT COMPANY reserves the right, in all cases, to limit or forego certain tasks that may be asked of us. Any such decision by NATIONAL TITLE and ABSTRACT COMPANY is for the sole purpose of meeting our predetermined criteria and should in no way be construed as the opinion of NATIONAL TITLE and ABSTRACT COMPANY as to the financial stability or of the parties or entities involved in our decision to limit or decline any task. Neither should any decision made by NATIONAL TITLE and ABSTRACT COMPANY be construed as a determination of the propriety of any transaction.