What Buyers Pay For and What They Get
Title insurance and the deed are two of the least understood parts of a Florida closing. Both show up as line items on the closing statement, and most buyers sign whatever’s put in front of them. They matter, though. The deed is how ownership actually moves to you, and the type of deed decides what promises the seller makes about the title. Title insurance protects you, and your lender, against problems with that title that weren’t caught before closing. This guide covers what each one does, what Florida law sets, and what to ask.
Short version: Most lenders require a lender’s title policy, which protects the loan amount. An owner’s policy is optional but protects your equity against covered title problems from before your purchase. Florida title insurance premiums are set by state rule and apply statewide, so the premium itself doesn’t change from one company to another, though other title and closing fees can. Buying both policies from the same provider usually costs less. Who pays for the owner’s policy and who picks the title agent is negotiable and set in your contract. Florida charges documentary stamp tax of 70 cents per $100 on deeds. Mortgages pay 35 cents per $100 in stamp tax plus a 0.2% intangible tax. A warranty deed gives you the strongest promises from the seller, and a quitclaim deed gives almost none. After closing, sign up for your county’s free property fraud alert if it offers one.
What title insurance does
Before closing, a title agent or attorney searches public records for anything that could cloud the seller’s ownership, such as:
- Unpaid mortgages and liens.
- Judgments.
- Missing heirs.
- Easements.
- Recording errors.
Title insurance covers losses from covered problems the search missed, or that couldn’t be found in the records. Examples include a forged deed in the chain of title or an heir who later claims an interest.
| Lender’s policy | Owner’s policy | |
|---|---|---|
| Who it protects | The lender, up to the loan amount | You, up to the purchase price |
| Required? | Most lenders require it | Optional |
| When it ends | When the loan is paid off | Generally continues as long as you own the property |
| Cash buyers | Not needed | The only title protection a cash buyer gets |
Policies have exceptions, such as matters shown on a survey or listed in the commitment. Read the title commitment before closing to see what’s excluded.
Skipping the owner’s policy can look like an easy saving, but without it a covered title problem is your loss. The lender’s policy protects the lender, not you.
What it costs in Florida
Premiums are set by the state. Under Florida Statute 627.782, the state adopts a rule specifying the premiums title insurers charge, and those rates apply throughout Florida. That means you can’t shop for a lower premium on the same coverage. The policy premium depends mainly on the amount insured.
Other fees aren’t set. Title agents also charge for the title search, settlement or closing services, and courier and other fees. These vary, so compare the Loan Estimate and closing disclosures, and ask for an itemized list.
Buying both policies: The Consumer Financial Protection Bureau notes that the total is usually lower when the same provider issues both the lender’s and owner’s policies.
Who pays: In Florida, who pays for the owner’s policy, and who chooses the title agent, varies by local custom and is negotiable. Your purchase contract spells it out, so read that section before you sign. If the seller pays, they may want to pick the title company.
See closing costs in Florida and the closing cost calculator.
Florida transfer taxes at closing
| Tax | Rate | Applies to | Statute |
|---|---|---|---|
| Documentary stamp tax on deeds | 70 cents per $100 of the price | The deed transferring the property | 201.02 |
| Documentary stamp tax on mortgages | 35 cents per $100 of the loan | The mortgage and note | 201.08 |
| Intangible tax on mortgages | 0.2% (2 mills) of the loan | New mortgages on Florida property | 199.133 |
Example: On a $400,000 home with a $320,000 loan, deed stamps are $2,800, mortgage stamps are $1,120, and intangible tax is $640. Who pays the deed stamps is negotiable and set by the contract. The mortgage taxes are normally the borrower’s cost.
Common types of deeds in Florida
- General warranty deed: The strongest promises. Florida’s statutory form (Statute 689.02) says the seller “fully warrant[s] the title” and will defend it “against the lawful claims of all persons whomsoever.” This is the standard deed in most resale purchases.
- Special warranty deed: The seller warrants only against problems arising while they owned the property, not before. It’s sometimes used by builders and corporate sellers.
- Quitclaim deed: Transfers whatever interest the signer has, with no promises that they have any. It’s used mainly between family members, to remove a former spouse, or to clean up title issues, not for ordinary purchases.
- Fiduciary deeds: Personal representative’s deeds in estates and trustee’s deeds from trusts. They carry limited warranties, so title insurance matters more.
- Life estate deeds: Used in estate planning to pass property at death while the owner keeps living there. These have tax, homestead, and benefits consequences, so they’re a job for an estate planning attorney, not a form.
How you take title also matters. Married couples, unmarried co-owners, and trusts each have options with different effects on survivorship, creditors, and probate. Decide before closing, since the title company prepares the deed in that name. A buyer’s deed passes title, but title insurance is what protects you if that title turns out to be flawed.
What to review before closing
- The title commitment: It lists who owns the property, what must be cleared before closing (such as the seller’s mortgage), and exceptions the policy won’t cover. Ask about anything you don’t understand, especially easements and restrictions.
- The survey: It can reveal encroachments, fences over the line, or easements. Without a survey, the policy typically excludes survey matters.
- Liens and open permits: Code enforcement liens and open permits can follow a property. Ask for a municipal lien search. See buying a fixer-upper in Florida.
- HOA and condo estoppels: They confirm what the seller owes the association. See buying a townhouse in Florida.
- Manufactured homes: Make sure the home’s title status is resolved. See buying a manufactured home in Florida.
After closing: protect your title
Property fraud, where someone records a forged deed to sell or borrow against a property they don’t own, is a real risk. Some Florida counties offer free alerts when a document is recorded under your name. The Orange County Comptroller runs one, for example. The alert doesn’t stop a fraudulent recording, but it lets you act quickly. Check your county clerk or comptroller’s site to sign up.
Also file for your homestead exemption if it’s your primary residence, and keep your owner’s policy and deed with your important papers. For selling later, see the seller net proceeds calculator. For the full buying process, see buying a house in Florida, and for land purchases, buying vacant land in Florida.
Frequently Asked Questions
It’s optional, but it’s the only title coverage that protects you rather than your lender. It covers losses from covered title problems that existed before you bought, such as forgery or undisclosed heirs.
The premium itself is set by state rule and applies statewide, so it doesn’t vary by company. Title search, settlement, and other fees do vary, so compare those.
The buyer normally pays for the lender’s policy. Who pays for the owner’s policy varies by local custom and is negotiable. Your purchase contract states who pays and who chooses the title agent.
70 cents per $100 of the sale price on the deed. A mortgage adds 35 cents per $100 of the loan in stamp tax plus a 0.2% intangible tax.
A warranty deed includes the seller’s promise that the title is good and that they’ll defend it against lawful claims. A quitclaim deed transfers whatever interest the signer has, with no promises, so it’s rarely used in normal purchases.
Sources
- Florida Statutes, Section 627.782: Adoption of rates (title insurance)
- Consumer Financial Protection Bureau, What Is Owner’s Title Insurance?
- Florida Statutes, Section 201.02: Tax on deeds and other instruments relating to real property
- Florida Statutes, Section 201.08: Tax on promissory notes, mortgages, and other obligations
- Florida Statutes, Section 199.133: Nonrecurring intangible tax on mortgages
- Florida Statutes, Section 689.02: Form of warranty deed prescribed
- Orange County Comptroller, Property Fraud Alert
This article is for general informational purposes only and isn’t financial, legal, insurance, or tax advice – for guidance specific to your situation, talk to a licensed professional.