Escrow & Title
In Florida, 'interlocking' ownership (one entity owning shares in another that owns real estate) creates complexity in title because:
AIt makes properties ineligible for title insurance
BProper authorization for conveyance must be documented through corporate resolutions or operating agreements✓ Correct
CFREC must approve all entity-owned property transfers
DOnly individuals can own real estate in Florida
Explanation
When real estate is owned by a corporation, LLC, partnership, or trust, conveyance requires proper authorization through corporate resolutions, operating agreements, or trust documents. Title examiners verify these documents to ensure the signer has authority to convey.
Related Florida Escrow & Title Questions
- In Florida, 'constructive notice' of an interest in real property is provided by:
- When a Florida escrow dispute arises and the broker cannot determine to whom the funds belong, the broker may:
- A Florida property has an annual HOA assessment of $3,600. The closing is on August 1. Using a 365-day proration, how much does the seller owe the buyer as a credit (HOA unpaid)?
- In a Florida real estate closing, 'prorated real estate taxes' typically appear on the HUD-1/Closing Disclosure as:
- In Florida, a 'special warranty deed' warrants the title only against claims arising:
- In Florida, a 'lis pendens' recorded against a property means:
- In Florida's 'race-notice' recording statute, a subsequent purchaser has priority if they:
- A 'title search' in Florida is most commonly conducted by:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →