Understanding “Title” In Florida

What is Title?

In Florida, when an individual holds Title to a certain property, he or she has legal ownership of the property. During a real estate transaction, Title is transferred from the seller to the buyer at closing, which gives the buyer full ownership of the property he or she is buying. Here are some facts that real estate sellers, buyers, and investors should know about Title in Florida:

Taking Title in Florida

Under Florida Law, this can be taken in several ways. The way Title to a property is taken usually depends on considerations such as tax consequences and estate planning. In the State of Florida, you can take Title of real estate in your own name, which is known as sole ownership. This can also be held by a specific trust, such as a Florida Land Trust or a Living Trust, in the name of a trustee for the benefit of certain designated beneficiaries. A third way you can take this to a property is with two or more owners. Examples of this include “joint tenants with the right of survivorship” and “tenants in common.” Additionally, married couples can take this as a “tenancy by the entirety.”

Holding Legal Title in Florida — Who Can Do It?

Generally, Title to real property in Florida is held by natural persons. However, Florida Law allows entities such as corporations, partnerships, and limited liability companies to hold legal Title to real property.

Establishing Clear Title

In the State of Florida, in order to ensure that a property has clear title, you must file an action for quiet title with the court. Although a good Title Insurance policy will typically offer strong protection against claims brought by people claiming a right to the property, this type of policy will not have any effect on establishing clear title.

Filing a Quiet Title Action

A Quiet Title Action is a lawsuit that is typically filed with the court by the owner of a property. This is done to ask the court to declare a judgment that terminates rights on all parties that might have claims against the property owner’s ownership rights.

Quiet Title Actions vary from case to case, and there are many factors that come into play when it comes to filing this type of lawsuit, such as how many parties are involved, what defenses the parties may raise, and how easy it is to find those parties. The Quiet Title Action process begins by filing the lawsuit with the court and notifying the other parties involved that the suit has been filed, which will give them twenty days to file a response with the court. If the parties are found easily, the Quiet Title Action can generally be completed in about sixty days.

Removing a Cloud on Title

A cloud on Title can be caused by gaps in the chain of this to a property as well as by any adverse interest to the ownership of the property such as a lien. Removing a cloud on a Title will ensure the new owner has a clear title and, therefore, full ownership rights over the property.

Filing a Successful Quiet Title Action

A successful Quiet Title Action can remove all adverse legal claims and interests other individuals might have on a property. If a Quiet Title Action is successful, it results in a Florida judge signing a judgment that declares the property as “quieted,” which frees the chain of Title from encumbrances and/or liens. Typically, the only types of liens that can survive a Quiet Title Action in Florida are Bank Mortgage Liens and Federal Tax Liens on the property.

To learn more about taking Title in Florida and how we can help you make sure the Title to your property is free of hidden dangers, give us a call today at (305) 921–0440 or send us an email to [email protected] to schedule an initial consultation with one of our Real Estate Attorneys.

Learn more Understanding “Title” In Florida