Florida title search and common defects — how to resolve

The title search process

1. Title agent orders the search at the county registry.
2. Public records examination: deeds, mortgages, judgments, liens, easements, restrictive covenants.
3. Federal records search: IRS tax liens.
4. Subdivision plats examination.
5. Verification of current owner's legal capacity (marriage, divorce, death).
6. Title Commitment issuance.

Common Florida title defects

Tax liens

• Unpaid property tax liens.
• HOA / condo association liens.
• Mechanic's liens (unpaid contractors).
• IRS tax liens.
• Florida Department of Revenue liens.

Judgments

• Civil judgments against seller.
• Family court orders (alimony, divorce).
• Bankruptcy judgments.

Estate issues

• Unidentified heir in past estate.
• Probate not finalized.
• Spouse of deceased owner not joined to deed.

Restrictions and easements

• Utility company easements (FPL, water, sewer).
• Shared-access easements with neighbor.
• Restrictive covenants (HOA rules, deed restrictions).
• Encroachments (neighbor's fence on your lot).

Defective documents

• Errors in legal description.
• Missing signatures.
• Improper notarization.
• Historical forgery.

Reading a Title Commitment

The Title Commitment has four schedules:

Schedule A

Transaction identification: buyer name, price, policy type, covered amounts.

Schedule B-I (Requirements)

List of actions required before policy issuance:

• Pay off and release current mortgage.
• Pay identified liens.
• Get spouse signature.
• Etc.

Schedule B-II (Exceptions)

List of items not covered by the policy even after issuance:

• Existing easements (utility, neighbor).
• HOA restrictive covenants.
• Mineral surface rights.
• Etc.

Carefully verify exceptions — that's what won't be covered if issue.

Schedule C (legal description)

Exact cadastral description of the property.

Curing: how to resolve

For each defect listed in Schedule B-I (Requirements):

1. Pay the liens: title agent calculates exact payoff, funds directed at closing.
2. Obtain formal releases / satisfactions from creditors.
3. Quiet title action for lost heir cases: limited lawsuit to clarify title.
4. Corrective affidavits for description errors.
5. Joinder of spouse or additional heir.

Curing happens during inspection period or up to closing. If unresolved, closing must be pushed back or canceled.

Remedies if unresolved

If a major defect can't be cured before contract end:

• Request an extension from seller.
• Negotiate an escrow holdback: seller leaves an amount in escrow to cover post-closing resolution.
• Withdraw via title contingency, recover EMD.
• Accept the defect as title insurance exception (to avoid for major defects).