Buying in Hollywood should feel exciting, not stressful. Still, the stack of closing papers and new terms can raise questions, especially around title insurance. You want a clear path to closing and protection from surprises after you move in. In this guide, you will learn what title insurance is, how Florida specifics affect your closing, what to look for in a title commitment and association estoppel, and the exact steps to take before you sign. Let’s dive in.
What is title insurance
Title insurance protects you from financial loss caused by defects in a property’s title that existed before closing but were unknown or unresolved. Think forged documents, clerical errors in public records, unknown heirs, or undisclosed liens. If a covered issue appears later, the insurer may defend your title or pay for your loss up to policy limits.
There are two policy types. A lender’s policy protects your lender up to the loan amount and is usually required when you finance. An owner’s policy protects you up to the purchase price. It is optional by law but widely recommended.
You pay a one-time premium at closing, and coverage usually lasts as long as you own an interest in the property. Standard policies have exclusions. Title insurance generally does not cover zoning or building code violations, environmental issues, or boundary disputes unless you add endorsements. Survey-related items may be excluded without a survey endorsement. Ask which ALTA or state policy form and endorsements are being offered.
Florida and Hollywood basics
In Florida, licensed title agents and title companies commonly handle the title search, escrow, and closing. Using an attorney is optional. Local customs influence who pays certain costs, including the owner’s title policy, but payment is negotiable and set by your contract. Do not assume the buyer pays by default.
Florida also has homestead protections that can affect marketability and may require spousal signatures or other steps when a seller has lived in the home. Florida’s Marketable Record Title Act can clear very old recorded claims in some cases and may factor into curing long-dormant issues.
For local research and post-closing checks, you can use:
- Broward County Clerk of Courts for recorded deeds, mortgages, liens, judgments, and lis pendens.
- Broward County Property Appraiser for parcel data, legal descriptions, and tax info.
- Broward County Tax Collector for property tax and payment history.
- City of Hollywood departments for permits, planning, zoning, and code enforcement.
- Local title companies or attorneys for fees, endorsements, and curative practices.
Read your title commitment
The title commitment is your roadmap. It arrives after the title search and shows what the insurer will cover and what conditions must be met before issuing the policy. Review it early and ask questions in writing.
Schedule A: names and legal
Check that your name and the seller’s name are correct and match identification and contract details. Confirm the policy types and amounts are right for your deal. Review the legal description and make sure it matches the contract and survey.
Schedule B-I: requirements to close
This section lists items that must be satisfied to issue the policy. Common requirements include mortgage payoffs, lien releases, proof of authority to sign, and recording specific documents. Ask for payoff statements in writing and confirm how each requirement will be cleared before closing.
Schedule B-II: exceptions to coverage
Exceptions are items the policy will not cover. Look for recorded easements, covenants, restrictions, or rights-of-way that could limit how you use the property. Watch for unresolved mortgages or a lis pendens tied to a lawsuit. Evaluate each exception for impact on value and use, and consider requesting endorsements that can narrow certain exceptions.
Survey and endorsements
Most title commitments carry a standard survey exception. A current survey can reveal encroachments, unrecorded easements, or boundary conflicts. If the survey is clean, you may qualify for a survey-related endorsement that tightens coverage. Ask the title officer which endorsements are available, such as survey or access endorsements, and what they cost.
Association estoppels in Hollywood
If you are buying a condo or a home in an HOA, the association will issue an estoppel certificate. This document confirms the seller’s standing, unpaid balances, transfer fees, special assessments, and any violations that could become liens. Lenders and title companies rely on it to make sure there are no undisclosed monetary obligations.
What the estoppel includes
Expect to see the dollar amount due, how far assessments are paid, pending or anticipated special assessments, and any fines or violations. You may also see insurance requirements and relevant use restrictions, such as rental rules or owner-occupancy provisions.
Why it matters locally
In South Florida, associations may levy special assessments for roofs, hurricane work, or structural repairs. These costs can be significant. The estoppel helps you gauge post-closing exposure and plan for transfer or capital contribution fees.
Timing and buyer actions
Order the estoppel soon after going under contract. If it shows money due, your contract and settlement instructions should clearly allocate who pays what. If the association discloses a possible special assessment, request more detail, like budgets, reserve studies, or meeting notes, so you can assess your risk before closing.
Common Hollywood title issues
Liens and payoff errors
Unreleased mortgages, judgment liens, child support liens, tax liens, and unpaid property taxes are common. These must be paid or released before closing. Get payoff statements in writing and confirm recording of releases after closing.
Deeds, probate, and homestead
Missing signatures, errors in prior deeds, or unresolved probate can cloud title. Homestead rights can require particular signatures and documents. Curative steps may include corrective deeds, affidavits, or, in complex cases, a quiet title action. These issues can take time, so surface them early.
Surveys, encroachments, and permits
A survey may reveal a fence or structure crossing a boundary or a driveway placed within an easement. City or county records may show open permits or code enforcement liens. Work with your title company to coordinate cures, which may include permit closure, variances, or escrows.
How issues get resolved
Title companies coordinate payoffs, record releases, and obtain corrective documents. When a dispute cannot be resolved by agreement or record, litigation may be required. You can also use targeted endorsements to insure against certain risks. If the risk is monetary and undisputed, an escrow holdback can allow closing while the issue is resolved.
Closing roles and documents
Who is involved
Your closing team typically includes you and the seller, your real estate agents, the title company or closing agent, your lender if you have a loan, and sometimes attorneys. Each party has a defined role in clearing title and finalizing funds.
What to review
Key items include the title commitment and any updates, the Closing Disclosure for mortgage deals, the deed form and grantee language, the association estoppel and governing documents, your survey, and proof of payoff or release for any liens. Federal rules require that your Closing Disclosure be delivered at least three business days before loan consummation. Use that window to check fees, title and recording charges, and whether the owner’s title policy is included.
Costs and who pays
Title insurance premiums, escrow fees, and recording charges are often guided by local custom but are negotiable and set by your contract. Documentary stamp taxes and recording fees are government charges calculated by the title company for accuracy. Ask for a written estimate of all costs and endorsements early in the process.
Buyer checklist
Early in contract
- Order a title commitment from a licensed local title company.
- Request the HOA or condo estoppel and resale package right away.
- Obtain or order a current survey, or confirm if an existing survey is acceptable.
- Review seller disclosures and check City of Hollywood and Broward County records for permits and code items.
Before closing
- Read Schedule A and both Schedule B sections. Get written explanations for each requirement and exception.
- Decide on endorsements, especially survey or access coverage, to tighten owner protections.
- Confirm all liens will be paid and released at or before closing. Ask for payoff letters.
- Compare your Closing Disclosure to estimates. Check title premiums, recording fees, and lender costs.
- Verify estoppel amounts and how any unpaid assessments or fees will be split on the settlement statement.
At and after closing
- Keep your owner’s title policy and recorded deed in a safe place.
- Confirm the deed and any mortgage were recorded in Broward County.
- Track any promised post-closing items, like releases, endorsements, or permit closures, to completion.
Smart cost and claim tips
Title insurance is a one-time premium tied mainly to the purchase price. Endorsements add small costs but can deliver meaningful protection. Rates and available endorsements are regulated and may vary by filing, so get a written estimate from your title company.
If a covered defect appears after closing, you file a claim with your title insurer. Depending on the policy, the insurer may defend your title or pay for your loss. For issues outside policy coverage, speak with a qualified professional.
Next steps
A smooth closing in Hollywood starts with clear documents, early estoppels, and a title team that communicates. If you want help aligning contract timelines, reading your title commitment, and coordinating your association documents, our team is ready to guide you. Connect with Levitate Real Estate to get a local, full-service plan that keeps you confident from offer to keys.
FAQs
What does owner’s title insurance cover in Florida?
- It generally covers losses from covered defects that existed before closing, such as unknown liens, errors in public records, or forged documents, up to the policy limit.
Who usually pays for the owner’s policy in Hollywood?
- Payment is negotiable and based on contract terms, and local customs can vary, so confirm with your agent and title company for your specific deal.
What is a title commitment and why does it matter?
- It is the insurer’s pre-policy report that lists what it will cover, what must be cleared to issue the policy, and the exceptions that will not be covered.
What is an HOA or condo estoppel certificate?
- It is a statement from the association that confirms account status, fees, assessments, and violations so you know what obligations exist before closing.
Do I need a survey for a Hollywood home or condo?
- A current survey helps reveal boundary or encroachment issues and can qualify you for stronger title coverage with a survey endorsement.
When will I receive my Closing Disclosure?
- For financed purchases, you must receive it at least three business days before loan consummation so you can review terms, fees, and title charges.
