Important Florida Title Insurance Facts Important Florida Title Insurance Facts

What Are Some Important Florida Title Insurance Facts That Every Realtor Should Know?

May 22 2020

There are important Florida title insurance facts that every realtor should know in order to help their clients purchase properties successfully. As a realtor, you surely understand that buying a home can be an overwhelmingly stressful experience for most people, even experienced real estate buyers. As you know, there is usually a mountain of paperwork to sign and many different fees associated with the closing process.

Due to the several things that are happening at the same time and the many new terms homebuyers hear during the home-buying process, they often misunderstand title insurance. Therefore, real estate professionals must be able to answer their clients’ questions about this crucial part of every real estate transaction. As a realtor, you should be able to help your clients understand the value of title insurance and the risks that can arise without it. The problem is that sometimes realtors do not fully understand what title insurance is.

Here are some important Florida title insurance facts every realtor should know to help their clients buy the home of their dreams:

  • The Definition of Title Insurance

Title insurance is a type of insurance that protects a homebuyer’s ownership rights (owner’s title insurance) or a lender’s money (lender’s title insurance). Real estate buyers should purchase an owner’s title insurance policy to protect their legal rights to the property they buy. Most people think that once you buy a home, it is yours and no one can take it away; however, this is simply not true. Hidden title issues can arise even years after you close on a home, and you could end up losing your property even though you bought it legally. Obtaining title insurance is the only way to avoid this. You only need to pay for your Florida title insurance policy once, and it will protect your ownership rights for as long as you own the property.

  • How Title Insurance Protects Homebuyers

The best way to understand how title insurance works in Florida is by looking at an example. Suppose one of your clients purchased a new home from a builder, but the builder did not pay the roofing company. That roofing company will surely want its money, so it could file a lien against the property your client purchased. Without an owner’s title insurance policy, upon closing on the property, your client will be responsible for paying the builder’s debt. An owner’s title insurance policy can protect homebuyers from a wide variety of significant risks, such as unknown heirs claiming to own their property, forged documents, illegal deeds, and much more.

  • The Price of an Owner’s Title Insurance Policy and Who Pays for It

The good news is that, as mentioned above, an owner’s title insurance policy financially protects homebuyers for as long as they own the property, and they only need to pay for it once. For Florida homebuyers, the price of an owner’s title insurance policy depends on the sale price of the home they intend to purchase. Florida’s title insurance rate is $5.75 per thousand (up to $100,000), and $5.00 per thousand thereafter (up to $1 million).

The party that pays for the owner’s insurance policy varies from state to state. In the State of Florida, the seller typically chooses and pays for the owner’s title insurance policy. However, that can change depending on the county the property is located.

Help Your Clients Understand These Important Florida Title Insurance Facts

Title insurance can be confusing for your clients and seem like “just another expense” during the closing process. Therefore, it is your job to make sure your clients understand the importance of purchasing a title insurance policy to protect their ownership rights and make sure the property they buy legally belongs to them for as long as they want. As a real estate professional, educating both yourself and your clients on Florida title insurance, the protections it provides, and the risks of buying real estate without it is vital.

Are you a Florida realtor? Work with Marina Title. Call us today at (305) 901-5628 or send us an email to

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