The Beginner’s Guide to Title Insurance Rates in Florida

The Beginner’s Guide to Title Insurance Rates in Florida

Real estate transactions entail many processes and moving parts, many of which may be unfamiliar to the average buyer. Title Insurance is one of the critical requirements for any closing, and no buyer should take ownership of a property without it. Here’s a quick rundown of what Title Insurance is, how the cost is determined, and why you should enlist Marina Title for all your title needs.

Understanding Title Insurance

When you purchase a property, you’re doing so with the goal of taking legal ownership of it. The rights and interests that come with owning a property are known collectively as title, and you want to ensure that there are no issues with it. If the title is defective, erroneous, or saddled with liabilities such as liens, you’ll find yourself inheriting these issues along with your new property.

That’s why title specialists like Marina Title are employed to do a careful search and analysis of the property’s title to make sure everything is in order. If any problems are found, they must be resolved before the transaction can close. Regardless of whether the title is clear of any problems, a Title Insurance policy will need to be prepared by the title company to protect your ownership interest.

In broad terms, title insurance is what allows the parties to a real estate transaction to determine their rights and interests to a property prior to transferring legal ownership from one to the other. Specifically, it protects the new owner from any losses or claims stemming from title problems that may emerge down the road, such as “hidden hazards” that escape even the most comprehensive title search.

For example, if a third party claims they have ownership to your property, the terms of your Title Insurance policy will guarantee your legal defense and cover the associated costs. Even if the claim proves legitimate, you will be reimbursed for your actual loss in accordance with the amount stated in the policy.

Given that millions of dollars are paid by title companies annually to protect against or settle such issues, Title Insurance is clearly a necessary and crucial expense.

How Much Does Title Insurance Cost?

The cost of Title Insurance is calculated based on the purchase price of the subject property:

Up to $100,000 = $5.75 per $1,000

Over $100,000 to $1 million = $5.00 per $1,000

Over $1 million to $5 million = $2.50 per $1,000

Over $5 million to $10 million = $2.25 per $1,000

Over $10 million = $2.00 per $1,000

For example, if a home is worth $100,000 or less, then the minimum cost of Title Insurance will be $575. If the home is $150,000, then an additional $250 is added for a minimum of $825. In short, the more expensive the property, the higher the cost of the Title Insurance premium. However, unlike premiums for other types of insurance, this is a one-time charge paid only at closing.

As for who covers that expense, it depends on the Florida county, as well as the terms of the sales contract. In Broward and Miami Dade counties, the buyer is by default required to pay for Title Insurance as well as choose the title / closing agent. In many other parts of the State, the seller has that responsibility. Ultimately though, it is up to the parties to negotiate which fees they will pay amongst themselves in the contract.

Credits and Deductions

If you’re getting Title Insurance for a property that meets the following requirements, you may qualify for a reduced premium:

1. The Title Insurance policy must have been issued to either you or the seller in the transaction, and;
2. The subject property cannot have been improved since the issuance date of the policy, or the policy must be less than three years prior to date of reissuance, or  a new policy is being made for a refinance.

If the above qualifications are met, the minimum rates for the Title Insurance premium will be as follows:

Purchase Price                       Title Insurance Premium per $1,000

$0 – $100,000                                                 $3.30

$100,000 – $1 million                                      $3.00

$1 million – $10 million                                    $2.00

Over $10 million                                              $1.50

Thus, if a home is worth $100,000 or less, then the minimum cost of Title Insurance with the reissue credit will be $330 instead of $575. If the home is $150,000, then an additional $150 is added instead of $250, for a minimum of $480 compared to $825 for the usual premium.

Marina Title has the qualifications and experience to help clients keep their Title Insurance costs to a minimum. As closing and title agent, we will also ensure that your real estate transaction goes as smoothly and efficiently as possible.

For more information about the cost-saving and professional title services we can offer, contact (305) 901-5628 or email [email protected].