The Role of Title Insurance Companies and Attorney's Opinion of Title in Arizona and Florida

The Role of Title Insurance Companies in Real Estate

Title insurance companies, also sometimes referred to as title insurance carriers, utilize title search reports to protect both lenders and buyers from potential losses arising from defects in the property's title. These companies conduct thorough investigations using the title search report to affirm the legitimacy of the property's title. If any issues are uncovered, such as outstanding mortgages, overdue taxes, or unresolved legal disputes, title insurance companies address these before issuing a policy. This ensures that the transaction proceeds smoothly and that all parties are protected against any potential future claims.

Arizona Title Insurance and Florida Title Insurance Regulations

Title insurance is regulated in Florida by the Florida Statutes Title 37, Chapter 627. In Arizona, title insurance is regulated under Arizona Revised Statutes Title 20.

Arizona Attorney's Opinion of Title, Florida Attorney's Opinion of Title, and How AOLs Compare to Title Insurance

Attorney opinions of title, are letters from an attorney (also called AOLs) that serves as the written opinion of the attorney as to whether title to real estate is free, clear, and marketable. It assesses the risk that the title insurance company or the lender may face based off of the title search report. Many lenders choose to use an attorney opinion of title instead of title insurance as it is often more cost effective and can still secure the lender's interests. We provide detailed, affordable, and efficient Arizona attorney's opinions of title and Florida attorney's opinions of title issued by our experienced Miami based attorney who serves as outside counsel.

While many Florida cities and counties do require attorney opinions of title for certain real estate matters, Arizona does not. Thus, in addition to our Florida attorney's opinion of title, we also provide an option for a legal opinion of title issued in house by an Arizona licensed Legal Paraprofessional with extensive experience in the title industry.

Legal Paraprofessionals or "LP"s are compared by the Arizona Supreme Court to Nurse Practitioners, and are therefore permitted to practice law within their limited scope of practice based on their respective area(s) of endorsement. LPs are permitted to issue legal opinions in addition to appearing before a court or tribunal, drafting legal documents, and other acts otherwise limited to a licensed attorney. We offer a legal opinion of title issued by an LP and is available at a lower cost but with the highest quality in detail, and analysis, thus providing the same degree of security as an attorney's opinion of title.