Florida Title Insurance & Closing FAQs

Title insurance is a form of insurance that protects against certain covered losses involving ownership of real property. Unlike insurance that primarily addresses future events, title insurance generally concerns defects, liens, claims or other matters arising from events occurring before the policy date.

Before issuing a policy, the title company reviews relevant records and works to address identified requirements. The policy then provides protection subject to its terms, conditions, exclusions and exceptions.

An owner’s title insurance policy helps protect the buyer’s financial interest in the property against certain covered title claims. Depending on the policy and circumstances, this may include defense of a covered claim and payment for a covered loss up to the policy amount.

A lender’s policy does not protect the homeowner’s equity or ownership interest.

A lender’s title insurance policy protects the mortgage lender’s interest in the property up to the policy amount. Mortgage lenders commonly require this coverage as a condition of making the loan.

The lender’s policy protects the lender—not the buyer. A separate owner’s policy is used to protect the property owner’s interest.

Coverage generally continues for as long as the insured owner retains an interest in the property and may provide certain continuing protection under the policy’s terms.

The precise duration and scope of coverage are governed by the issued policy.

No. Title insurance is generally purchased through a one-time premium paid as part of the transaction. It is not a recurring monthly premium like many other forms of insurance.

Depending on the policy, covered matters may include certain undisclosed ownership claims, forgery, recording errors, prior liens, improper execution of documents or other defects in the chain of title.

Every policy contains exclusions, exceptions and conditions. Coverage for a particular matter depends on the policy language and the facts of the claim.

Responsibility is determined by the purchase contract. Customs differ by county and transaction, so there is no single practice that applies to every Florida closing.

The buyer and seller should review the contract carefully to understand which party is responsible for the owner’s policy, settlement fees and other closing expenses.

Florida establishes promulgated base premium rates for title insurance. The amount generally depends on the policy amount and whether the transaction qualifies for an applicable credit or reduced rate.

Settlement, search, examination, recording and other transaction charges may be separate from the title insurance premium.

The purchase contract ordinarily identifies the title and closing company and allocates responsibility for certain expenses. The parties may negotiate these provisions before signing the agreement.

When financing is involved, the lender may also have requirements that the selected provider must satisfy.

Escrow is an arrangement in which money, documents or other items are held by a neutral party pending satisfaction of agreed conditions.

In a real estate transaction, the escrow holder may receive the buyer’s deposit, closing funds and signed documents and disburse them when the transaction is authorized to close.

An earnest money deposit is money delivered by the buyer under the purchase contract as an indication of the buyer’s intent to complete the transaction.

The contract determines the amount, deadline, escrow holder and conditions governing the deposit.

Available delivery methods may include secure electronic deposit, wire transfer, check or delivery to an authorized office, depending on the transaction and instructions provided by your closing team.

Do not send funds until you have received and independently verified the correct instructions.

The escrow holder must follow the purchase contract, written authorizations, applicable escrow procedures and legal requirements. The title company cannot simply decide which party should receive disputed funds.

When the parties disagree, additional written agreement, mediation, arbitration, court action or another authorized process may be required.

Always call The Closing Agent using a trusted telephone number obtained independently and verbally confirm the wiring information before sending funds.

Do not use a telephone number included in an unexpected email and never rely solely on emailed wiring instructions.

Stop and do not send funds. Unexpected changes to wiring instructions should be treated as potentially fraudulent until independently verified with your known closing contact.

Contact your bank and The Closing Agent immediately. Ask the bank to begin its emergency recall or fraud-response process and report the incident promptly to the appropriate law-enforcement authorities.

Time is critical, and recovery cannot be guaranteed.