Chapter 1-MCQ-v2

Study Notes

Do's and Don'ts: Florida law dictates ethical duties for non-attorney title and closing agents in real estate transactions.
Primary Title Services: These are required for issuing title commitments and policies. They involve title search evaluation for insurability, using sound underwriting practices and policies to establish appropriate coverage and exceptions.
Insurability Determination: Involves understanding covered risks and exclusions to ensure proper coverage for the consumer, non-attorneys should not explain the meaning of the provisions.
Commitment and Policy Preparation: Review deed, Schedule B1 requirements, and Schedule B2 exceptions to confirm all commitments are met.
Unauthorized Practice of Law: Non-attorneys cannot provide legal advice or prepare legal documents such as deeds, wills, trust agreements, or durable powers of attorney.

General Principle: Preparing documents affecting title transfers are permissible, but not for other legal documents.
Documents Requiring Attorneys: Deeds, mortgages, satisfactions, wills, trust agreements, durable powers of attorney and other documents related to creating legal rights or obligations require an attorney.
Legal Documents: Preparing legal documents without an issued policy is against the law. Curative documents to clear up clouds on property are usually considered an unauthorized practice of law.
Complex Documents: Avoid preparing complicated documents like wraparound mortgages or deeds reserving enhanced life estates.
External Documents: Decline requests to accept documents outside of closing.

Uninsured Deeds: Be aware of uninsured deeds in the chain of title; they raise heightened risk of mistakes or fraud and lack warranties.
Pre-Death Deeds: Avoid using deeds executed by someone deceased or relying on a previously executed power of attorney without proper verification of its validity and compliance with the signing process.
Requirements In The Chain of Title: Be cautious of any documents that are questionable or incomplete within a chain of title.
Title Holder Issues : Non-attorneys should not advise customers on the way to hold title — that is reserved to attorneys.
Customer Clarification Requests : Remain mindful of customer clarification requests, understanding whether a customer seeks additional information or advice, and redirecting them to other resources if needed.