What is title insurance?

Title insurance is an insurance policy that provides property owners and lenders protection from past events which could negatively impact the new owner, such as liens, encumbrances or defects in the property’s title. 

 

What protection does title insurance provide? 

Title insurance protects against claims from past owners or defects in title, many of which are unforeseeable even with the most detailed title search.  Examples include: fraud, forgery, another individual claiming ownership, unrecorded or improperly recorded documents, liens and judgments.

 

Do I need title insurance?

If you are getting a loan to purchase your property, your lender will require you to purchase a policy. If a problem arises and a claim is made contesting the ownership of your property, title insurance will pay the costs of defending a covered claim, subject to the policy’s specific terms and conditions. 

 

How much does title insurance cost?

The cost of title insurance varies depending on the purchase price of the property.  Rates are set by the State of Florida.  It is a one-time charge, paid at closing, yet coverage lasts as long as you own the property.  

 

Does the buyer or the seller pay for title insurance?

The party responsible for paying for title insurance varies by county.  In most Florida counties, the seller pays for title insurance and chooses the title company.  However, this cost can be negotiated in the real estate purchase contract.  

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In the following counties, it is customary for the buyer to pay for title insurance and choose the title company:

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Broward, Miami-Dade, Collier, Sarasota.