Who Pays Title in Florida Counties?

September 19, 2023

Real estate transactions can be as rewarding as they are stressful. Sellers and buyers can look forward to a new beginning at the end of the process, but they have many things demanding their full attention on their way there.

When you embark on a real estate process, you can take many steps to protect your peace of mind. The assistance of a title and escrow company can help you on that front by taking care of the most taxing parts of the transaction. Becoming familiar with the process early on can also help you prepare for anything, especially when it comes to handling the title and escrow costs.

What Are Title Costs?

In Florida, title costs are related to the money spent on services leading up to the title transfer. A successful closing involves many steps, and verifying the validity of the property title is a huge part of the process.

Title searches and title insurance are expected. Many lenders require these services before granting a mortgage loan, and sellers also tend to add title insurance to the contract before moving along with the transaction.

Title searches: The main purpose of a title search is to confirm the identity of the property's owner, but they're also meant to reveal any problems with the title's information. Errors should be fixed on the record before the closing date, and this might add a new wave of expenses. An unlisted third party with a claim on the property, unpaid liens, and inaccurate information can all result in financial burden and legal repercussions.

Title insurance: Title insurance works as protection against any of the issues mentioned above, in the event that something went unnoticed during the title search. For example, you may not worry about hidden heirs until they come to fight their claim for the property years after closing. Title insurance policies are meant to cover potential legal fees and to overall save buyers and lenders from financial loss.

Title transfer: The property changes owners once all the closing costs are accounted for. Title searches can be counted among these costs, but there are other expenses involved. Lawyers and real estate agent fees are considered part of these costs, as well as the documentary stamp that's paid upon transferring the title.

Who Pays for Title Costs in Florida?

The practice of letting sellers pay for title insurance costs spans most of the state, and there's a reasonable explanation for this.

As the owner of the title at the beginning of the process, the seller can take over title insurance costs as a show of good will. This helps ease the buyers' concerns and ensures more transparency going forward.

Exceptions take place in Broward, Collier, Miami-Dade, and Sarasota. In these counties, it's usually up to buyers to cover the insurance fees.

When it comes to title searches, it all depends on who hires the title and escrow company to take over the task. Buyers can do their research on public records, check the county's website, and head to the local county courthouse or the county assessor's office. Still, most people enlist a real estate agent to evaluate the title during the actual transaction.

At the end of the day, knowing the local real estate market helps you prepare, but you shouldn't set your expectations in stone just because of it. There's no law in Florida binding a specific party to the responsibility of paying for title insurance, making each transaction distinctly unique.

Negotiations exist for a reason, and you can always argue in favor of the option you feel most comfortable with. Some agreements have sellers and buyers footing the bills together, sharing the expenses in a way that's convenient for everyone involved.
The most common approach has sellers covering the costs of title searches, insurance, and broker fees while buyers handle the costs of property inspections and appraisals.

Know What To Expect During Your Real Estate Transaction

Getting professional assistance can save you time and energy, even if you have experienced taking part in a real estate transaction. Buyers and sellers alike need to consider different costs that go beyond the price tag on the property. On that note, the price range changes with each season, according to the local demand.

A real estate agent can help you navigate the most complex parts of the process and ensure that you don't have unfair payments along the way. They can also keep tabs on all the deposits owed before the closing date so you don't have to worry about of it the closer you get to settlement.

The specialists at Key Title & Escrow can help you manage all the standard costs of a real estate transaction, along with potential expenses generated by title flaws, property damage, and other sudden issues. We keep you up to date with any developments and use the latest technology to complete each process without delay.

Keep things neat and let Key Title & Escrow handle all your title and escrow needs. Our specialists take care of all the steps leading up to title transfer, including title searches and insurance. We also help you negotiate payments, ensuring constant feedback between buyers sellers, and representatives. If you're about to start a real estate transaction, remember to call (305) 235-4571 or toll-free at (800) 547-0006 to start getting the best guidance to help you through the process. You can also fill out the contact form on this page to get more information from our specialists. Key Title & Escrow helps you ensure an effective, stress-free process.