October is here and so are the new TILA-RESPA Integrated Disclosure rules or TRID, for short. One aspect of the new rules is the disclosure of title insurance premiums in consumer real estate transactions. The new federal law will require that lender’s title insurance policies be disclosed at the full premium. In Florida, though, the fact is that a lender’s policy is frequently issued in connection with an owner’s policy and is, in those instances, priced lower than at full premium. We refer to this as a simultaneous issue premium. The result is that TRID actually calls for an inaccurate disclosure of the title insurance premiums as otherwise required by Florida law. In order to comply with both federal and Florida disclosure rules, there will be yet another form included in the closing documents. Titled the Florida Insurance Premium Disclosure & Settlement Agent Certification, this form will undoubtedly begin making its appearance in TRID transactions. The form will ostensibly comply with both TRID rules and Florida law concerning disclosure of title insurance premiums. In addition, the form meets the new requirement that buyers and sellers sign an acknowledgement that they have received and reviewed the settlement statement and that they approve the charges as shown. The closing agent must also sign an acknowledgement that it reviewed the settlement statement, closing instructions and any other items pertaining to escrowed funds and that it will disburse in accordance with the transaction terms and Florida law. These acknowledgements are required in Florida in all title insurance transactions, not just those covered by TRID. The new combined form can be found at the following link , as provided by The Fund.
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