When it comes to real estate transactions, the purchase price is just one of the payments to be made. There are seller fees, title fees, inspections, escrow deposits, and more. The buyer pays many of the transactions, but they aren’t on the hook for all of them. Does the seller have to pay title insurance in Florida?

While title searches are supposed to catch anything outside of a clean title, at the end of the day there can still be issues that arise after the search. Sometimes there will be an issue with the title that is not caught during the title search. Perhaps there’s an unlisted third party who has claims to ownership of the property, or an easement or lien on the property. Other times there can be errors in the records that need to be corrected for the title to transfer to the new owner.

No matter the problem, title issues can be expensive to fix, not to mention the amount of time that must be exhausted in order to rectify the mistake. Title insurance is a guarantee against defective titles. Title insurance is a one-time premium to protect the buyer from out-of-pocket costs to correct title problems, transferring the responsibility to a title insurance company.

Title insurance is not always a requirement, but it is a good safety net to have for peace of mind during the home buying process. While most buyers expect the purchase to go smoothly, why take on the risk of a title roadblock? Many lenders recognize this risk, and will require title insurance as a condition of the loan. So, who pays for the title insurance premium?

While the answer varies from county to county, the seller usually pays for title insurance in Florida. The seller doesn’t need the insurance for themself though; covering the cost of the buyer’s title insurance policy is generally regarded as a gesture of good will. The exceptions are Broward, Collier, Miami-Dade, and Sarasota counties.

If you are ready to purchase a home, you have a choice about the title company you use! At Clear Title, our Pensacola area real-estate experts have decades of experience in all things title searches, insurance, escrow, and more. Have a question about closing your purchase? Contact us at one of our conveniently located offices:

Pensacola: (850) 361-4029

Pace: (850) 994-3838

Pine Forest: (850) 202-8518