Frequently Asked Questions

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Real Property Law

Why do I need a real estate attorney?

Purchasing a home is typically the largest transaction an individual will ever be involved in.  Buying or selling real estate is complex and we are able to answer important questions regarding issues that may affect you.  Some of those questions may be:

• What are my income tax and estate tax consequences?
• What do I need to know about Florida property taxes, zoning or special assessments?
• How will I handle probate issues?
• How can I simplify a future sale?
• Is the property's recorded legal description accurate?
• Will I be able to use the property as I wish?
• Will the title to the property be marketable if I decide to sell or refinance later?

Further, we are versed in Florida real estate law and will personally perform or make sure the following procedures in a real estate transaction are completed in a timely, professional manner:

• Review the contract and ensure that all provisions and contingencies are in your best interest
• Inform you of your legal rights and obligations
• Obtain a title search, evaluate the status of the title and require appropriate legal remedies to clear any defects
• Advise you on what the title policy does not protect against, emphasizing marketability of the   title when you sell
• Prepare or review the closing statement and other closing documents, and let you know about seller contingencies that affect your interests
• Interpret and counsel you about all legal documents related to the title and transaction, including deeds, mortgages and closing statements
• Advise you on how you should take the title to the home, and how this affects your overall business and personal estate
• Check for unrecorded municipal liens, including sewer and special assessment liens
• Prepare a bill of sale to cover any personal property such as curtains and appliances that you and the seller agree shall remain in the home
• Inform you about the income, estate, and gift tax consequences to your estate

What is title insurance?

Title insurance is a form of insurance that guarantees title to real estate.  When you purchase real estate, title insurance guarantees the title to the real estate is free of all liens and the seller has good and marketable title.

Do I have to buy title insurance?

No.   However, when you purchase real estate and obtain a loan, your lender will require you to obtain title insurance.  Further, when you refinance your property, your lender will require title insurance for its benefit.   In cash transactions, title insurance is not required, but we always encourage you to purchase it. 

How much does title insurance cost?

It depends on the price of the real estate and the amount of your loan.  As title insurance rates are promulgated by the state of Florida, everyone charges the same amount for title insurance.  Please call us today for a free quote.

Are title companies cheaper to use than real estate attorneys? 

Absolutely not.   This is a myth that holds NO truth.   Title insurance rates are set by the state, so everyone has to charge the same amount.   Prices do vary on the “junk fees” which typically include a title search, title exam, and closing fee.     Title companies and attorneys have to charge the “junk fees” according to state law.   We guarantee the lowest prices in the state of Florida.   We will beat anyone’s rate.

What is a re-issue credit on title insurance?

When you purchase real estate, you receive an owner’s policy of title insurance.  If you refinance your property at a later date and the lender requires new title insurance, your owner’s policy will entitle you to a discount on the new title insurance.     Whether or not we are handling your next real estate transaction, please give us a call and we will give you a free quote of what you SHOULD be paying for title insurance.

Should I use a warranty deed or quit claim deed? 
Depends on the situation.  If you are buying real estate, you should always receive a warranty deed from the seller.   A warranty deed contains exactly what it implies…warranties.  Quit claim deeds are typically used between related parties (i.e. father to son).   A quitclaim deed transfers whatever interest a person MAY have in real estate and contains no warranties.

I lost the deed to my house, what should I do? 

The original deed, although nice to have, is no longer required to sell real estate.  A copy of your deed is maintained in the Clerk of Court’s office in the county where the property is located.   You can obtain a copy of your deed by contacting the Clerk of Court. 

I’m selling my real estate, how much will I have to pay in documentary stamp taxes?

The tax rate for documents that transfer an interest in real property is $.70 per $100 (or portion thereof) of the total consideration paid, or to be paid, for the transfer. An exception is Miami-Dade County, where the rate is $.60 per $100 (or portion thereof) when the property is a single-family residence. If the Miami-Dade property is anything other than a single-family residence, the tax rate is $.60 plus $.45 surtax per $100 (or portion thereof).

Do I have to pay documentary stamp taxes on a mortgage?

Yes.  Documentary stamp tax is due on a mortgage, lien, or other evidence of indebtedness filed or recorded in Florida. The tax rate is $.35 per $100 (or portion thereof) and is based on the amount of the indebtedness or obligation secured, even if the indebtedness is contingent.  Additionally, intangible taxes will likely be assessed.

I’m having trouble paying my mortgage, what should I do?

If you are having trouble paying your mortgage, we encourage you to contact us as soon as possible.  Foreclosure is not always the first thing on a lender’s mind.  Many lenders will work with you through difficult times, but you have to take the first step. Taking no action will inevitably lead to foreclosure. 

What is the prime rate? 

The prime rate, as reported by the Wall Street Journal's bank survey, is among the most widely used benchmark in setting home equity lines of credit and credit card rates.  Worded differently, it is an interest rate that can change daily.    The prime rate is published daily in the Wall Street Journal.

What is a negative amortization loan?

A negative amortization loan is a type of loan that doesn’t reduce your balance. In other words, you're not paying back any principal. In fact, with a negative amortization loan your loan balance increases over time.

My tenant stopped paying rent, can I remove his/her belongings from the house and change the locks?  

No.   Self-help is prohibited in the state of Florida.   If a tenant stops paying rent, you have to evict them through a Florida court.   If you remove a tenant’s belongings or change the locks without going through the eviction process, you will be liable to the tenant for triple rent damages.

What is a triple net lease? 

In a triple net lease, the tenant pays real estate taxes, insurance, and CAM in addition to rent. 

Motor Vehicle Insurance and Auto Accidents

What insurance is required in Florida?

To maintain a Florida tag and registration, you must purchase a minimum of $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL) coverage. As long as you have a Florida tag, these coverage limits must be maintained, even if the vehicle is in another state or inoperative. There are no exemptions in the law. However, if you have been involved in a crash, or been convicted of certain offenses, you may be required to purchase bodily injury liability coverage (BIL).

What is Personal Injury Protection (PIP) Insurance?

PIP is a coverage that will compensate a loss due to injury regardless of who is charged with causing the crash. PIP applies to bodily injury to you, relatives who live in your home, and passengers who are not required to have PIP by law, as well as licensed drivers who drive your vehicle with your permission. PIP insurance also protects you if you are injured as a pedestrian or bicyclist as long as the injury is caused by a crash involving a motor vehicle.

How much will my insurance company pay if I am injured and have PIP Insurance?

Medical bills – 80% of all reasonable, necessary and related medical expenses with some insurers paying the remaining 20% under medical-payment coverage up to a total of $10,000. Your insurance carrier pays your medical bill no matter who caused the accident. Some insurance policies have a deductible, which must be met before your medical bills are paid.

Lost Wages – 60% of gross wages, plus all expenses reasonably incurred in obtaining from others ordinary and necessary services in lieu of those that, except for the injury, the injured person would have performed without income for the benefit of his/her household. This is considered as part of the PIP benefits. Therefore, a total of $10,000 is available for lost wages in combination with medical bills, not individually.

Death – benefits of $5,000 per individual.

What is Medical Payment Insurance?

This insurance covers medical expenses for anyone in your car, over and above your Personal Injury Protection insurance.

What is Uninsured Motorist (UM) Insurance?

With this coverage, your insurance company will pay you if the at fault driver is not insured, or does not have bodily injury insurance coverage.

What is Underinsured Motorist (UIM) Insurance?

This coverage protects you over and above what the other driver’s insurance covers, if your injuries warrant additional coverage. For example, if you use all of your PIP insurance, and you incur an additional $20,000 in medical bills, but the at-fault driver has only $10,000 worth of bodily injury insurance, your Underinsured Motorist Insurance would cover the remaining $10,000 in medical expenses. (this example is for illustrative purposes only)

What is Bodily Injury Insurance (BIL)?

Bodily Injury Liability coverage pays for serious and permanent injury or death to others when you cause a crash involving your car. Your insurance company will pay for injuries up to the limits of your policy and provide legal representation for you if you get sued. In particular, your company pays for injuries caused by you or members of your family who live with you, even if you were driving someone else’s vehicle. It may also cover others who drive your automobile with your permission. This coverage also provides you with legal defense in the event that the injured party sues you.

What is “Property Damage Liability” (PDL) Insurance?

This coverage pays for damages you or members of your family cause (and are liable for) to other people’s property in a crash involving a motor vehicle.

If I have been in an accident, how do I find out if the other person has insurance coverage?

You can mail a request to:

Bureau of Financial Responsibility
2900 Apalachee Parkway, Room A212, MS-98
Tallahassee, Florida  32399-0585

Or, you can fax a request to the bureau to: 850-488-7444

You must include a copy of the complete crash report, front and back, or the driver exchange of information form. These forms will provide the department with the necessary information needed to expedite your request.

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