Question 1

How does title insurance work in Florida?

Accepted Answer

Florida title insurance process: title search (a title company examines the public records to identify: the chain of ownership, any liens or encumbrances, any defects in the title, and any recorded easements or restrictions), title commitment (the title company issues a preliminary report identifying: the current owner, any exceptions to coverage, and the requirements for issuing the policy), closing (the buyer pays the title insurance premium at closing; in Florida, the seller typically pays for the owner’s policy in most counties, except: Miami-Dade, Broward, Sarasota, and Collier counties, where the buyer typically pays), and policy issuance (the title company issues the owner’s policy after closing).

Question 2

Who pays for title insurance in Florida?

Accepted Answer

Payment customs: the custom varies by county. In most Florida counties: the seller pays for the owner’s title insurance policy and selects the title company. In some South Florida and Southwest Florida counties (Miami-Dade, Broward, Sarasota, Collier): the buyer pays for the owner’s policy and selects the title company. The buyer always pays for the lender’s title insurance policy. The payment obligation is negotiable: the parties can agree to any allocation in the purchase contract.

Question 3

What is not covered by an owner’s title insurance policy?

Accepted Answer

Exclusions: matters arising after the policy date (defects that occur after the policy is issued), matters known to the insured but not disclosed to the title company, matters that would be revealed by a survey (unless survey coverage is added by endorsement), rights of parties in possession (tenants or other occupants whose rights are not recorded), and environmental contamination (title insurance does not cover environmental issues). Schedule B exceptions: the title commitment will list specific exceptions to coverage (easements, restrictions, and other matters that are excluded from the policy). The buyer should review Schedule B carefully and negotiate the removal of any objectionable exceptions.

Owner's Title Insurance

Owner’s Title Insurance in Florida

Process

Who Pays

Exclusions

Related Terms

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