It’s one of the first questions buyers and sellers ask, and the answer in Miami-Dade is different from most of Florida. Here’s how title insurance is customarily paid for in Miami-Dade County, what each policy covers, and what you can negotiate.
The short answer
In Miami-Dade County, the buyer customarily pays for the owner’s title insurance policy and chooses the title company. Broward County follows the same custom. In much of the rest of Florida, including Palm Beach County, the seller customarily pays and chooses.
Custom is only a default. The purchase contract decides who pays, and the standard Florida contract forms have a section for exactly this. If you want a different arrangement, negotiate it before you sign.
Two policies, two purposes
Most financed purchases involve two title insurance policies:
- Owner’s policy. Protects the buyer’s ownership for as long as they or their heirs own the property. It covers covered title defects that existed before the purchase but weren’t found, such as a forged deed in the chain of title, an unknown heir, or an unreleased lien.
- Lender’s policy. Protects the lender’s mortgage, up to the loan amount. Lenders require it, and the borrower pays for it.
When both are issued at the same closing, the lender’s policy is typically issued at a reduced “simultaneous” rate, which keeps the combined cost down.
What does title insurance cost in Florida?
Florida sets title insurance premium rates by regulation. The premium for an owner’s policy is based on the purchase price, and the premium for a lender’s policy on the loan amount. Because premiums are set by rule, the premium for the same coverage doesn’t change from one title company to the next.
What does change is everything around the premium: settlement fees, search fees, endorsements and how clearly those costs are disclosed. That’s why it pays to compare full quotes. A good quote shows the premium, any endorsements, Documentary Stamps, intangible tax and recording fees together.
Compare the bottom line of a title quote, not just the premium.
Why it matters who chooses the title company
The party who pays for the owner’s policy usually picks the title company. In Miami-Dade that’s the buyer, which means the buyer controls who examines title, holds the deposit and conducts the closing. Buyers and their Realtors should make that choice before the contract is signed, so the right company is named as escrow agent from day one.
Other costs that follow the same split
Title insurance isn’t the only item shaped by local custom. In Miami-Dade, sellers typically pay the Documentary Stamp tax on the deed ($0.60 per $100 of the price for a single-family residence), while buyers who finance pay the Documentary Stamps on the mortgage ($0.35 per $100) and the intangible tax (0.2% of the loan). Our tax estimator runs these numbers for you.
Get a quote before you sign
If you’re buying in Miami-Dade, you’re likely the one choosing the title company, so get a quote early. Request a title quote from Advance Partners Title and we’ll show every line item, including the fees many quotes leave out.
This article is general informationEvery transaction is different. For advice on your situation, talk to our team or your attorney.