Home-buying comes with many expenses, of which some are mandatory and some are not. Prospective buyers who are budgeting ahead or buyers going under contract on a property want to know: Is title insurance mandatory in Florida?

Title insurance is not always mandatory in Florida, but there are situations in which it is a legal requirement. Is the buyer paying in cash? No title insurance is required. Is there a lender involved in the transaction? They will require title insurance to move forward with closing, ultimately to protect themselves during the process. Is title insurance still a good idea, no matter the situation? Absolutely!

Title insurance protects the buyer from defects that may arise in the title during the closing process. No one wants to have a transaction stall out at the closing table, but there are many situations which can cause this to occur:

• Recording errors that change information in the title, or false records
• Fraudulent representation or forgery of signatures
• Ownership claims from outside parties
• Liens that have not been paid
• Undisclosed easements
• And more!

If the buyer doesn’t have title insurance but a defect arises during the title search, they can be on the hook for expensive fees and filings to correct the errors or omissions before the property can legally transfer hands. No one wants to invest more time and money in the home-buying process than they already have to, nor do they want to walk away from a transaction that they are deeply involved in. Title insurance is a one-time premium to cover any surprises that pop up unexpectedly. While not always mandatory, anyone buying a home in Florida should strongly consider this investment for the peace of mind it brings!

Have questions about title insurance, searches or the closing process? Call one of Clear Title’s offices:

Pensacola: (850) 361-4029

Pace: (850) 994-3838

Pine Forest: (850) 202-8518