Title insurance is important because it protects buyers and lenders from potential disputes over property ownership. In Florida, responsibility for paying title insurance premiums varies by county. Generally, the seller pays the cost, but in Collier, Sarasota, Broward and Miami-Dade counties, it is paid by the buyer.
This guide will tell you what you need to know about the cost of title insurance in Florida so you're better prepared to negotiate.
To make selling hassle-free, iBuyer.com provides comparison information for the top iBuyers in your area, and we handle the complicated details so you can focus on moving into your new home.
Florida Title Insurance
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What is Title Insurance?
Before we dive into who pays for title insurance in Florida, let's explain what title insurance is. Title insurance is a type of indemnity insurance put in place to protect homebuyers and lenders.
There are two types of title insurance, which we will discuss shortly.
The main reason title insurance exists is to prevent you from purchasing a home from someone who does not legally own it. The purpose of this insurance is to provide protection to protect you from financial loss due to known or unknown circumstances.
What is a Title Search?
Whether you're a home seller or buyer, you'll need to get a title search. If you're buying a home, your lender will likely require a title search on the home you want to purchase.
Most people assume that the home seller has the legal title to the home, but that's not always the case. A title search can help you find out who the legal owner of the home is and if there are any liens or judgments against the home.
Florida Title Insurance Tips
In Florida, a title company or attorney will conduct the title search on your behalf. In some cases, the lender or home buyer will take over the title search process.
If a home buyer decides to undertake a search, they will need to check the records at the local county courthouse, county assessor's office, or recorder's office. Searches are best left to professionals to ensure important information is not overlooked.
Who pays title insurance premiums in Florida?
In Florida, the responsibility for purchasing title insurance varies by county. With the exception of a few counties, of course, in most Florida counties the seller pays the cost of title insurance.
Counties where purchaser pays title insurance:
Collier County Sarasota County Broward County Miami-Dade County
If you live in a county where you are required to pay title insurance, be sure to contact the seller as you may be able to negotiate who pays the title insurance premium.
Florida Title Insurance, Who Pays?
As mentioned above, who pays for title insurance in Florida depends on what county you live in. The type of title insurance you purchase also determines who pays how much.
For example, owner's title insurance protects the home buyer's equity in the home. This insurance protects you if someone later tries to sue you for claims that were made against the home before you purchased it. The most common claims are for unpaid taxes or claims from contractors who haven't been paid for their work.
Lender's Title Insurance
Lender's title insurance is the second type of title insurance you can buy. This title insurance protects the lender's interest in the money they lend you. It is important to talk to your lender thoroughly before purchasing title insurance. In Florida, lenders are required to approve your title agent.
How to pay for title insurance
Unlike a mortgage or homeowners insurance, you don't have to pay title insurance monthly. Title insurance is paid up front, and the insurance stays in effect for as long as you or your family owns the home.
How much is title insurance?
The cost of title insurance varies depending on the price of your home. For example, a typical rate is about $5.75 per $1,000 from $100,000 up to $100,000.
If you're looking for $1 million in coverage, you'll pay about $5 for every $1,000. The best thing about title insurance rates is that you don't have to shop around for a better deal. The Florida Department of Financial Services regulates title insurance companies, so rates always stay consistent.
Florida Title Insurance Advice
Did you know there is an alternative way to sell your house rather than the traditional way? If that’s what you prefer, you have the option to sell your house to an iBuyer.
The biggest advantage of selling to an iBuyer is that they handle the entire home buying and selling process for you, and all you have to do is wait to receive an all-cash offer for your home.
What is an iBuyer?
An iBuyer is a company with excellent financial standing and an AVM that will write and deliver an all-cash offer. The “i” in iBuyer stands for instant buyer. These companies utilize cutting edge artificial intelligence to write an all-cash offer on your home.
How to sell to an iBuyer
If you decide you want to sell your house to an iBuyer, there are only a few steps you need to take: Keep in mind that there are several different iBuyer companies across the United States.
Some operate nationwide, while others are smaller and more local. Make sure you research iBuyers thoroughly before accepting an offer. It's also best to compare different iBuyer companies to ensure you get the best terms and offer.
1. Request an offer from an iBuyer
Once you find an iBuyer, you'll need to submit a request. The iBuyer will need information about your home and contact information. If your home meets the iBuyer's requirements, the iBuyer will make an offer within 48 hours.
2. Check the offer
The iBuyer will provide you with an offer that shows their net profit, and will include transaction fees and closing costs, if any, in the offer.
Once you receive an offer, you have about 5 days to make your final decision. Keep in mind that an offer comes with no obligation, so you have the right to reject the offer if you don't want to move forward with the process.
3. Accept the offer
If you decide to accept the offer, an iBuyer will have to come and inspect the home – they want to make sure your home doesn’t need any major repairs and that your home matches the description you provided in your application.
If any repairs are needed, we'll let you know as soon as possible after we've inspected the home. You won't have to pay for any repairs out of pocket — the iBuyer will deduct the repair costs from your net profit, and they'll handle the repairs when you move out of the home.
4. Choose a closing date
Once the repairs are made, you can choose the date you want to close, and most iBuyers give you up to two months to close and move out.
If you want to move out sooner, that's your choice! Once the purchase contract on your home goes through, payment will be made within days. If you're interested in buying your home while selling it to an iBuyer, you can work with the iBuyer to make that happen.
Sell your house easily
Now that you know who pays for title insurance in Florida, it's time to hand that responsibility over to someone else. Of course, you can have your real estate agent negotiate the payment of these fees on your behalf, but if you want to sell your house fast, you should consider an iBuyer.
If you're ready to take the next step and sell your house to an iBuyer with no obligation, submit your address now. We have iBuyers operating in a variety of market areas, including the Sunshine State of Florida.
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