Buying in Florida? You’re not alone. Home values here have skyrocketed in recent years due to the state’s sunshine, relaxed lifestyle, and booming economy. According to a study from Architecture Lab, Florida ranked No. 2 in the nation for growth in average home values between 2013 and 2023.
Ten years ago, the average Florida home was valued at just $144,464. By last year, that value had soared a staggering 164% to $381,922.
With such significant investments on the line, conducting a thorough Florida property title search is crucial. Here’s what you need to know about title searches in Florida.
Key Timeframes on Florida Property Title Searches
A Florida property title search delves into a property’s legal history to ensure you’re buying a clear title free of claims or encumbrances.
Start by knowing that a residential property requires a minimum search length of 30 years. This means the search will delve into all the previous ownership history and liens over the last three decades.
The minimum search period for commercial properties can exceed 30 years, depending on the specific property and potential complexities.
Now, let’s look at timeframes for liens. Liens are legal claims against a property that acts as security for a debt. They give the lienholder the right to take possession of the property or force its sale to recoup the amount.
Understanding how long these liens remain valid is crucial, as they can cast a shadow on a property’s title and potentially hinder a smooth closing.
- Mechanics Liens
These liens, filed by contractors for unpaid work, remain valid for one year and cannot be extended, even with mutual agreement.
- Code Enforcement Liens
These liens, filed for violations of building codes or zoning regulations, have been active for 20 years and are attached to all property owned by the responsible party, not just the specific property with the violation.
- HOA Liens
Florida is a “Super Lien” state, meaning HOA liens for unpaid dues or assessments can take priority over a first mortgage. These liens remain valid for ten years.
Another crucial thing to be aware of here is the Notice of Commencement (NOC). An NOC, filed with the Clerk’s office, serves as a public record, notifying potential buyers, lenders, and other interested parties about upcoming construction work on the property.
Contractors have one year from the filing date of the NOC to file a lien against the property if they are not paid for their work. This protects you as a buyer because any liens filed after that one-year window will not precede your mortgage.
However, an NOC can be extended if referenced explicitly in a recorded document like a deed.
Don’t Expect Death Certificates
Due to privacy laws, Florida Death Certificates with the cause of death are confidential and only available to certain close family members.
This information may not be readily accessible during a title search. This is something to remember if you have experience buying in other states.
Navigating Probate in Florida
When a property owner passes away, the legal process of distributing their assets and settling their debts is known as probate. In Florida, there are three main types of probate administration:
- Formal Administration
This process is the most detailed and time-consuming, usually applied to estates with complex assets over $75,000 (excluding exempt assets) or when a personal representative must manage the estate
- Summary Administration
This simplified probate process handles estates valued under $75,000 (excluding exempt assets). Or estates where the decedent has been deceased for over two years.
- Disposition of Personal Property Without Administration
This is a limited option for estates with minimal assets, typically only consisting of personal property like furniture or clothing. This process has no court oversight, but it has specific limitations regarding the value and type of assets it can handle.
If probate applies to your purchase, it can impact timelines. For instance, a formal administration can take significantly longer to resolve, potentially postponing the transfer of ownership.
Florida Surveys: Understanding Your Options
While a Professional Land Survey (PLS) is not mandatory by Florida law, it is crucial in securing financing for a property purchase.
Here’s why.
Most lenders require a survey for their title insurance policy. Florida has a standard exception for surveys, but lenders often don’t accept this exception. A further study is needed to ensure the property boundaries and improvements are accurately depicted.
There are two types of surveys: standard and American Land Title Association (ALTA). A standard survey verifies property lines and improvements and meets most residential property needs.
An ALTA is a more comprehensive survey often required for commercial properties and provides additional details like encroachments, easements, and flood zones.
Florida Standard Exceptions and Requirements: Understanding the Fine Print
A title insurance policy protects you against unforeseen issues with a property’s title. However, certain limitations, known as standard exceptions, are excluded from coverage.
Here’s a breakdown of some key Florida standard exceptions and what they mean:
- The rights or claims of parties in possession are not shown in public records.
This exception blocks claims from individuals living on the property who might not have legal rights, such as un-evicted tenants or squatters.
- Easements or claims of easements not shown in public records.
This prevents unauthorized access rights across the property that might not be officially recorded.
- An accurate survey and inspection will reveal encroachments, overlaps, boundary line disputes, and other issues.
This exception underscores the need for a thorough study to detect discrepancies in property lines. It structures that extend onto neighboring properties or overlapping ownership claims.
- Any lien or right to a lien for services, labor, or materials (whether incurred in the past or future) imposed by law and not shown in the public records.
This exception protects against potential liens from contractors or suppliers who haven’t officially filed their claims.
- Any adverse ownership claim by the State of Florida, based on its sovereignty over any portion of the insured lands (including submerged, filled, and artificially exposed lands.)
This exception also covers lands that have accreted to such areas. It protects against potential claims by the state regarding ownership rights to these lands, including those formed by natural processes.
Other Crucial Information
We’ve covered most things, but a few other notable pieces of legislation exist.
Following the tragic collapse of a condo building in Surfside, Florida, in 2021, government-backed mortgage lenders Fannie Mae and Freddie Mac implemented stricter requirements for condominium purchases.
- Project Review Requirements
These temporary measures focus on identifying and addressing significant deferred maintenance issues within condominium complexes.
- Condo Project Questionnaire Form
Fannie Mae and Freddie Mac mandated this form. It gathers information about a condo association’s financial health and any outstanding maintenance needs.
These additional measures aim to ensure the financial stability of condominium associations and minimize risks for future homeowners.
Lastly, we have insurance rates. It’s important to note that property insurance rates can vary significantly depending on your location within Florida.
Flood zones, proximity to the coast, and overall risk factors can all impact your insurance premiums. Be sure to factor these potential costs into your overall budget.
Navigate Your Florida Property Purchase with Confidence
Florida’s booming market demands a secure foundation for your property purchase. Your local title search expert, Pippin, leverages advanced technology and regional know-how to uncover potential issues and empower informed decisions.
