November 21, 1975
Mr. Norman P. Stoker
Deputy Executive Director
Southwest Florida Water
P. 0. Box 457
Brooksville, Florida 33512
This letter is pursuant to our telephone conference of November
20, 1975 and your letter of October 6, 1975, enclosing proposed
Administrative Directive concerning "title searches and title
It is my opinion that the District should continue to purchase
title searches and title insurance policies for the properties
that we acquire, either by purchase or condemnation, and that
the District should not get into the title insurance and ab-
stracting business, because of the extensive cost it would have
in personnel and equipment. In addition to that, title insurance
policies insure against forgery, for which you would not be pro-
tected with your own operation.
I suggest that we get lists of the cost of original policies and
reissue policies .f-ro at least two title insurance companies in
each county in which we do business. Then, we should use the
title insurance company with which we have done business before,
on the condition, of course, that they-have given us good service
in the past and that their prices are the same or better than
those we receive from the other companies within that county.
These lists should give us the coSt of policies up to $100,000.00,
and then on any policies for over that aemunt, the staff should
contact all of the title companies in that particular county to
get the best price. I would not go through the procedure of
advertising for bids in the newspaper unless the policy is over
November 21, 1975
Mr. Norman P. Stoker
I also believe that we should have a written agreement with each
title insurance company with which we do business as to the services
which would be included. For instance, they would furnish us with
a title insurance binder and we would proceed from the binder to
get the necessary instruments to clear the title and close the sale,
or file suit for condemnation. Of course, we would not be able to
furnish them with an exact price on most parcels, especially if V*
are going through the condemnation proceedings; however, I am sure
that most companies will agree to issue a binder for what we con-
sider to be the minimum amount at the time the binder is ordered,
with the understanding that it may be increased or decreased based
upon what we actually pay for the property by purchase or condem-
I certainly believe that our firm should see the final title in-
surance policy before it is filed in the District's files, to see
that it is a proper policy, and that any exceptions in the policy
are acceptable to us. We cannot just accept policies without having
them reviewed by someone who would know whether or not certain ex-
ceptions should be deleted. This would be similar to having an
X-ray taken and not having an opinion from a physician.
If you have any further questions or suggestions concerning this
matter of title insurance, I will be glad to discuss it with you.
Yours very truly,
Myron G,. Gibbons
cc: Mr. Clint Schultz
Mr. Robert L. Watson
S outImhest Flrida
Water Managemeant District
P. 0. BOX 457
DERRILL McATEER, Chairman, Brooksville
J. R. GRAW, Vice Chairman, Ocala
JOE E. HILL, Treasurer, Leesburg
October 6, 1975
Myron G. Gibbons, Esquire
Post Office Box 1363
Tampa, Florida 33601
BROOKSVILLE, FLORIDA 33512
THOMAS VAN DER VEER, Secretary, Yankeetown RONALD B. LAMBERT, Wauchula
S. C. BEXLEY, JR., Land O'Lakes ROBERT MARTINEZ, Tampa
N. BROOKS JOHNS, Lakeland
Donald R. Feaster, Executive Director
Re: Proposed Directive Title Searches/Title Insurance
The referenced directive is forwarded for review, comment and suggestions
prior to final action.
Also, please provide comments concerning the following:
Why buy title insurance on property which either has been or
will be condemned? If you have condemnation authority and a
flaw is discovered in the title, would it not be relatively
easy to correct when discovered either by negotiation or
subsequent condemnation. If the abstract/0&E/Earliest Record
Search has been done by competent persons, the odds in favor
of a flaw or cloud appearing should be remote.
Establish a position in the Real Estate Division for the
purpose of doing abstract work. C&SF has negotiated with the
title companies in their area to permit District personnel
complete access to and use of their records for $10 per day.
C&SF says that for that nominal charge, and the price of an
abstractor on their staff who can be handed a number of
searches to make in a given county each day, they come out
far ahead in terms of cost and get more done in a shorter
period of time with less red tape than they would using the
personnel of the title offices to do the work for them.
Your response by October 20, 1975 will be appreciated.
Very truly yours,
LD R. FEASTER, P. E.
cc: R. L. Watson, G. Clint Schultz and day T. Ahern
/ 4Ik., -
S1 253 ADMINISTRATIVE 14
Southwest Florida Water Management District DIRECT E
SUBJECT: Effctive: No.
TITLE SEARCHES AND TITLE INSURANCE Pasg 1 of 3 Dbtrbution:
PURPOSE: To provide guidelines for purchasing Earliest Record Searches, Title
Binders, Title Policies, Ownership and Encumbrance Reports, and Updates
and/or Secondaries of Earliest Record Searches.
INTRODUCTION: Administrative Directive #75-29 "Bids and Quotations" provides guide- I
lines for Purchasing Activities when securing bids and quotations." ',
This same directive is also to be followed when securing bids and quotations for
Earliest Record Searches, Title Binders, Title Policies, Ownership and Encumbrance
Reports, and Updates and/or Secondaries of Earliest Record Searches. Because of
the nature of these activities, additional guidelines are required and are provided
within this directive.
a) Earliest Record Search A report of the history of'any activities concern-
ing the title to a parcel. Indicates all conveyances, leases, mortgages,
liens, notices of lis pendens, and other instruments as shown in the county
records for specific parcel. Also includes all court or administrative-
proceedings concerning the owners of record in the chain of title. This
search would cover a period of time from the earliest public records to the
present. Does not determine the legality of the activity nor if the statute
of limitation or Curative Acts might eliminate any title problem.
b) Secondary Title Search Continuation of (a) above. Used to update previous
c) Ownership and Encumbrance Report Shows apparent record titleholder and
present outstanding liens or debts which affect title to the parcel.
d)" Title Binder and/or Commitment Preliminary report issued prior to the
issuance of a title insurance policy. Shows what is required to create an
estate or an interest to be insured on a specific piece of land. Also showsi
defects and objections to be removed or eliminated as well as liens and
encumbrances to be satisfied and/or discharged.
e) Title Policy Final report by a title company. Issued after the closing of
a transaction. It ensures the District that certain encumbrances, defects
of title or adverse claims to title will not disturb the present owner of
the parcel unless listed as an exception. The policy will list those condi-
tions and stipulations that the District will be protected against as well
as those not covered by the policy.
r;FW rhwestFlorida Water Maagemnent District
j TITLE SEARCHES AND TITLE INSURAI
f) Endorsement Issued subsequent
and stipulations as in the poli
if the endorsement modifies the
to and is subject to the same conditions
cy binder or commitment it refers to except
2. SECURING QUOTATIONS Administrative Directive #75-29 "Bids and Quotations"
will be followed when securing price quotations for the
services of tjtle pomppanies. In addition to that Directive the following require-
ments will apply ..:
a) .Written price quotations are to be obtained when starting new projects
or.j en-.4a rte increase is proposed by the title company currently
under contract. A Quotation Request form will be sent to at least two
firms, if available, in each county encompassed by the District.
Exhibit "A" provides a sample of the Quotation Request form to be used
when securingfquotations from title companies. This particular form
will be used in place of QR-8114 shown in Administrative Directive
#75-29 when purchasing the services described in this directive.
b) The Real Estate Division shall require firms engaged in providing
these services to submit to the District a statement of qualifica-
tions and performance for Board consideration.
c) After sealed bi4s are received, opened and properly recorded, the
Real Estate Division' will recommend a firm and contract to the
Governing Board for approval.
d) Once the contract for title searches and title insurance has been
established, it shall be used for such services until one of the
following events takes place.
(1) The District determines it to be in the best interest of
the District and/or Basins to cancel the contract.
(2) There is a significant price increase. Significant price
Inchrqases for the purpose of this directive shall have occurred
when th title company with whom the District conducts business
raise its prices to-a level higher than that quoted by the next
. s j 3 ADMINISTRATIVE 7r-7/
W anaement Distric DIRECTIV
Va WatdrH'Manaqoement District DI E.. IY
TITLE SEARCHES AND TITLE INSURANCE
, Pae 3
SOUTHWEST FLORIDA WATER MANAGEMENT DISTRICT
P.8. Box 457
rooksville. Florida 33512
Telephosn (904) 796-7211
The bove number must a
i quotation and rela
Date losud Reply no later Ua
Thes changes i atld be de l.cted L
ITEM DESCRIPTION AMOUNT fo th e total premium charge of
_____ _______ inal title police ift applied for
A) EARLIEST RECORD SEARCHES Upon receipt
of a Purchase Order.
Your organization would jssue an Earliest Record
Search to any parcel of land within your county
fora charge of
8) UPDATE AND/OR SECONDARY OF EARLIEST
RECORD SEARCHES An update of the same
Earliest Record Search would be issued at a later
dt if deemed necessary for a charge of
A) OWNERSHIP AND ENCUMBRANCE REPORT -
Upon receipt of a Purchase Order you would issue
an Ownership and Encumbrance Report showing
the apparent record title holder to any parcel of
land within your county for a charge of
A) TITLE BINDER I COMMITMENT Upon receipt
of a Purchase Order By us you would issue a
Title Binder to any parcel of land within your
county for a "minimum premium rate" of
8) ENDORSEMENT OF BINDER -An Endorsement
of the above Title Binder would be issued at a later
date if deemed necessary for a charge of
) TITLE POLICY After we hae determined the
total amount of the policy to be issued, you
would then issue a policy for that amount.
Y_- '- :o .
Sn I -
When returning a Quotation Request, please attach a copy of your title iurnce rate schedule.
Tite Company Coninents:-
SWFWMD Form 601-02 Rev. 06/75
THt I N T N