Whether you are buying a new home for your family or you are investing in a piece of real estate, you are going to find that the entire process can be complex, including a lot of paperwork and terms you may have never heard of.
You will likely be told that a title insurance policy will have to be purchased at this time, too. But what is it? And who is responsible for it?
What is Title Insurance?
Just as its name suggests, title insurance provides protection for the title to your property. In other words, it protects your right to the title. Let’s take a look at why this is so important.
Each time a property is transferred to a new party, a record of this is recorded with the county recorder’s office. Before the property changes hands, a deep dive into these records is performed by the title company. This is known as the title search.
The title examiner will review the transfers, confirming that the seller truly has the authority to sell the property, as well as look for any other records that may be attached to it, such as liens, judgments, outstanding taxes, levies, and so forth. Anything that shows up on the title search can either be handled prior to the closing or the file may not be cleared to close.
Despite their best efforts, things can still get missed in the title search. This could be due to an oversight by the title examiner or it could be due to an erroneous recording or forged/fraudulent document. Any title issues that may arise after you take ownership could impact your rights to the property.
A title insurance policy is your first line of defense.
Who Pays for Title Insurance in Florida?
All of the costs of buying a home can really add up over time. Knowing whether or not you are going to have to be responsible for paying for title insurance in Florida can help you to plan ahead.
So, who pays for title insurance?
It is customary for the seller to pay for title insurance in most areas throughout the state of Florida – with the exception of a few counties, including Broward County, Sarasota County, Miami-Dade County, and Collier County.
Duval County, together with their neighbors, Clay County, St. Johns and Nassau County, primarily leave title insurance up to the seller to cover the fee as it is included in the closing costs.
Keep in mind that this is a customary practice and that the payment of title insurance can be negotiated between the parties.
Title Insurance at Kendall Title
Throughout the U.S., most states allow buyers to decide whether or not they want a title insurance policy for their new property. In Florida, however, there is no option – title insurance is mandatory when purchasing a piece of real estate.
If you are interested in learning more about title insurance, then the title experts at Kendall Title can help. We have extensive experience in all types of real estate transactions, from contracts to closings. Title insurance is our specialty.
To learn more, contact us today at (904) 230-1063.