Who Pays for Title Insurance in Florida

County Customs in Florida

Unlike many states where title insurance payment responsibility is standardized, Florida follows local county customs that vary significantly across the state. These customs have been established over decades and are generally understood by real estate professionals in each county.

Miami-Dade County

In Miami-Dade County, the buyer typically pays for the owner's title insurance policy. This is one of the unique characteristics of the Miami-Dade real estate market and differs from most other Florida counties. Buyers should budget for this expense when planning their closing costs.

Broward County

In Broward County, the seller customarily pays for the owner's title insurance policy. This is the most common arrangement throughout most of Florida and represents a significant closing cost that sellers should anticipate.

Other Florida Counties

Most other Florida counties follow Broward County's custom, with the seller paying for the owner's title insurance. However, some counties have their own unique customs, so it's essential to work with a knowledgeable title company that understands local practices.

Negotiable Terms in Contracts

While county customs provide a baseline expectation, who pays for title insurance is ultimately negotiable and determined by the purchase agreement. In competitive markets or unique transactions, these costs may be allocated differently than local custom suggests.

The purchase contract should clearly specify who is responsible for paying the owner's title insurance premium. If the contract is silent on this issue, county custom typically prevails. However, buyers and sellers can agree to any arrangement that works for their specific transaction.

Common Negotiation Scenarios

• Seller offering to pay buyer's title insurance in competitive markets to make their property more attractive
• Buyer requesting seller to cover title insurance as part of closing cost assistance
• Split arrangements where both parties share the title insurance premium
• Seller agreeing to pay in markets where buyers have strong negotiating power
• As-is sales where buyer agrees to pay all closing costs including title insurance

Typical Buyer vs Seller Responsibilities

Beyond the owner's title insurance policy, there are other title-related costs and responsibilities that are typically divided between buyers and sellers according to standard practice.

Seller Typically Pays For

• •Owner's Title Insurance Premium (in most counties except Miami-Dade)
• •Title Search Fees - The cost to examine public records
• •Documentary Stamp Taxes on the Deed - State transfer taxes
• •Payoff of Existing Mortgages and Liens
• •Title Curative Costs - Fixing title defects discovered during the search

Buyer Typically Pays For

• •Lender's Title Insurance Premium - Required by mortgage lenders
• •Owner's Title Insurance (in Miami-Dade County)
• •Recording Fees - To record the deed and mortgage
• •Documentary Stamps on the Mortgage Note
• •Intangible Tax on the Mortgage