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The Buyer or the Seller… Who Pays for Title Insurance in Florida?

Posted by Kim G. Bosshardt | Jun 26, 2023 | 0 Comments

who pays for title insurance in Florida

Who pays for title insurance in Florida? It's a question that homebuyers and sellers alike ask when closing on the sale of their property.

Sometimes, it's simply assumed that one party or the other will foot the bill. But, understanding who ultimately pays the price can be important to reaching an acceptable agreement between the two.

In this blog post, we'll explore the basics of title insurance in Florida, including who typically pays for it and why it's important.

We'll also discuss why the cost of title insurance isn't as big a deal as it may seem and how a reputable title insurance agency like Bosshardt Title can help you navigate the world of title insurance and protect your investment.

Florida Title Insurance Basics

When you purchase a property, you are essentially buying the title to that property. This title represents your legal property ownership, and it comes with certain rights and responsibilities. However, there could be issues with the title you may not be aware of, such as outstanding liens, unpaid taxes, or errors in public records.

These issues can cause problems for you down the line, even if you are unaware of them at the time of purchase. This is where title insurance comes in. Title insurance protects against any potential defects or disputes related to the property's title. This means that if any issues arise, the title insurance company will step in and help resolve the issue or compensate you for any losses you may incur.

Most lenders will require you to purchase a lender's policy as a condition of your loan, but it's up to you whether or not you want to purchase an owner's policy, as well.

Who Pays for Title Insurance in Florida?

In Florida, the person responsible for paying for title insurance varies from county to county.

Typically, the seller pays for the title insurance in Florida, except for the following counties:

  • Broward County
  • Sarasota County
  • Miami-Dade County
  • Collier County

There may also be other factors that influence who pays. For example, in a new construction transaction, the developer or builder may pay for the title insurance as part of the overall closing costs.

But keep in mind that while the seller is generally responsible for paying for the title insurance policies, this is negotiable. Buyers and sellers can negotiate who will pay for the title insurance as part of the sales contract negotiations.

It's also worth noting that the cost of title insurance can vary depending on a number of factors, like the sale price of the property, the location, and whether reissue credit applies. You should also compare rates to ensure you get the best deal possible.

Why Having to Pay for Title Insurance Is Best Practice

While the cost of title insurance in Florida may seem like an additional expense, it provides crucial protection for both the buyer and lender.

Without title insurance, you could be left vulnerable to potential disputes related to the property's title, resulting in significant financial losses.

On top of that, the cost of title insurance is a one-time expense paid at closing. So, once you've paid for the policy, you're covered for as long as you own the property for any claims related to before you took ownership.. You won't have to worry about renewing your policy or paying additional premiums in the future.

Florida also regulates the cost of title insurance in Florida, meaning rates are competitive and fair. This ensures buyers get a reasonable price no matter what.

Not to mention, in many cases, the cost of title insurance can be rolled into your closing costs or financed as part of your mortgage. This means you won't have to pay the full amount upfront and can spread the cost over time.

Let Us Help You Determine Your Title Insurance Needs

Navigating the world of title insurance can be a real hassle, and we at Bosshardt Title Insurance Agency understand that better than anyone. That's why we're here to help you every step of the way.

We pride ourselves on being there for our clients through all of life's transitions, including helping you find the perfect policy for your unique situation.

Whether you're a first-time homebuyer or a seasoned investor, we'll work with you to answer your questions, explain your options, and help you make informed decisions about your title insurance needs.

So if you're in the market for title insurance in Florida, look no further. Contact us today to schedule a consultation, and let us help you protect your investment.

About the Author

Kim G. Bosshardt

Board Certified Real Estate Attorney


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