It’s not often that you find two adjacent counties with very different regulations. The major difference between the two counties in Florida is the person who chooses the title company and pays for the title policy. It’s important to know that all title insurance regulations are decided by the state, but the local customs in each county can vary. Florida is especially an important state to note because of the various conflicting local customs. There are many areas of Florida where it is customary for the seller to pay for the title insurance policy, but not all areas are that way. Now, we will break that down further for you with specific examples.
In Palm Beach County, the seller chooses the title insurance company and pays for the owner’s portion of the title insurance and settlement. The buyer pay’s for other charges related to the mortgage like the endorsements and settlement charges related to obtaining the mortgage. In Broward County, the homebuyer picks the title company and pays for the owners and lender’s title insurance. The settlement charge is still charged to both buyer and seller based on the amount of time required to process the transaction. There are no differences between the owner’s title insurance policy that buyers pay for in Palm Beach and Broward County. Whereas most counties in Florida are seller paid, the following including Broward are buyer-paid:
· Sarasota County
· Collier County
· Miami-Dade County
To make things as simple as possible, the person who pays is the one who chooses the title company. Make sure you do your due diligence on the title agency that is going to be doing examination and settlement. Not all companies are created equal. The realtor will help guide you in a direction for an agency but there is nothing wrong with doing the research and selecting one you believe will be able to better handle your matter.
If you are buying a home in Broward, Collier, Sarasota or Miami-Dade counties, you will also get the choice of where the closing will take place. In all of the other counties, including Palm Beach County, you can add a preferred title company to the special instructions section of the contract. However, it is ultimately up to a mutual agreement between the seller and buyer in seller paid counties.
If you have any questions about Florida title insurance or are in need of a Florida title company contact our Florida Headquarters, located in Boynton Beach.