What Is Title Insurance and Why Do Florida Buyers Need It?
What Is Title Insurance and Why Do Florida Buyers Need It?
You found the perfect home, made it through inspections, and you’re ready to close. But before you sign, there’s one more crucial protection to understand: title insurance.
Here’s why it matters in Florida.
What Is Title Insurance?
Title insurance protects your ownership rights against past issues that could impact the title to your home.
It covers legal fees and financial losses if someone else has a claim on the property.
What Can Go Wrong with the Title?
In Florida, common title issues include:
- Undiscovered liens (from unpaid taxes or contractors)
- Errors in past deeds
- Unknown heirs or disputes over inheritance
- Forged signatures or fraudulent documents
- Boundary disputes
Even if the seller thinks they own the property cleanly, a deep title search can uncover hidden problems.
Two Types of Title Insurance
- Lender’s Policy (required by most mortgage companies)
- Protects the lender until the loan is paid off
- Paid by buyer (or seller, depending on county)
- Owner’s Policy (optional but highly recommended)
- Protects you, the buyer, for as long as you own the home
- One-time fee paid at closing
Who Pays for Title Insurance in Florida?
It depends on the county:
- In Sarasota and Manatee Counties, the seller typically pays for the owner’s policy
- In some counties (like Collier), the buyer pays
This is negotiable, so review your contract carefully.
How Much Does It Cost?
Florida has promulgated rates, so prices are fairly standard:
- Roughly $5.75 per $1,000 of purchase price up to $100,000
- Lower rates per $1,000 after that
Your closing agent or title company will include this in your Closing Disclosure.
Final Thought
You wouldn’t buy a car without insurance—don’t buy a home without title protection.
📞 Call Michael Renick at 941.400.8735 to make sure your Florida home is protected from day one with the right title policy.
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