Why Is Title Insurance Important in Florida?

7131633187 • September 26, 2025

Why Is Title Insurance Important in Florida?

Why Is Title Insurance Important in Florida

 Buying a property in Florida involves more than just reviewing the location, price, or mortgage. One of the most important—and often overlooked—legal aspects is title insurance. This type of insurance protects both the buyer and the lender against potential legal issues related to property ownership. In a state with such a dynamic real estate market like Florida, not having this protection can lead to serious financial risks.

Below, we explore what title insurance is, its cost, how it works at closing, and when it is advisable to work with a real estate attorney to avoid potential surprises.


What Is Title Insurance in Florida?

Title insurance in Florida is a policy designed to protect the buyer and lender from hidden defects in a property's ownership history. These may include:

Errors in public records

 

  • Pending lawsuits or claims
  • Undisclosed liens or mortgages
  • Fraudulent signatures or forged documents

 

Unlike other types of insurance (such as auto or health), title insurance is paid once at closing and provides coverage for as long as you own the property.


How Much Does Title Insurance Cost in Florida and Who Pays for It?


The cost of title insurance in Florida is directly tied to the property's purchase price. The state regulates rates and typically calculates them as a percentage of the transaction value.

In most Florida counties, the seller pays for the buyer’s title insurance policy. However, in Miami-Dade County and certain areas of Broward County, it is common for the buyer to cover the closing costs.

👉 Example: For a $300,000 property, the title insurance premium may be around $1,575 (based on the state formula).


How to Choose the Best Title Insurance Company in Florida


Selecting a reliable title company in Florida is essential, as it will be responsible for:

Conducting the title search


  • Preparing the legal documents for closing
  • Issuing the title insurance policy


Key tips include:


  • Verify the company is properly licensed in Florida.
  • Compare online reviews and reputation.
  • Confirm experience in the specific county where the property is located.
  • Ensure they work with specialized real estate attorneys.


Title Search and Insurance Issuance at Closing


The title insurance process is an integral part of real estate closings in Florida:

Title Search: The company reviews public records to confirm there are no legal issues.


  • Problem Resolution: Any claims or liens must be resolved before closing.
  • Preparation of Closing Documents: Includes the deed, promissory note, and insurance policy.
  • Issuance of Title Insurance: Once the process is complete, the policy is delivered to the buyer and lender.
  • This step ensures the new owner has full legal rights to the property, free from hidden encumbrances.


When to Hire a Real Estate Attorney for Title Insurance in Florida


Although the title company handles much of the process, having a real estate attorney in Florida can make a significant difference. Hiring an attorney is especially important if:

The property has gone through inheritances, divorces, or multiple recent sales.



There are tax liens, boundary disputes, or prior debts.

It is a high-value investment or a purchase under a business entity (LLC).

You need to negotiate who pays for title insurance and other closing costs.

An attorney not only reviews documents but also ensures the entire process is 100% legal and transparent.


Conclusion


Title insurance in Florida is more than just a formality; it is a powerful tool for legal and financial protection. Knowing how much it costs, who pays for it, how to choose the right company, and when to involve a real estate attorney can save you thousands of dollars and potential legal disputes in the future.

If you plan to buy property in Florida, ensure that this critical step is included in your real estate planning.


Sources

Florida Department of Financial Services – Title Insurance Information

American Land Title Association (ALTA)

Florida Bar – Real Property, Probate and Trust Law Section

Investopedia – Title Insurance Explained

FindLaw – Florida Real Estate Laws




Why Is Title Insurance Important in Florida?
Real Estate Contract Review in Florida
By 7131633187 September 29, 2025
Signing a real estate purchase contract in Florida is one of the most important steps in buying or selling property.
By 7131633187 July 23, 2025
A partition action is a legal procedure that allows co-owners of a property to divide their shared ownership interests. This could involve physically dividing the property (partition in kind) or selling the property and dividing the proceeds (partition by sale). According to Dr(a). Mery Lopez Palma, these actions are essential when co-owners cannot agree on the future of the property. Why Do You Need a Partition Action? If you find yourself in a situation where you want to sell a jointly owned property but your co-owner refuses, a partition action may be necessary. For example: Business Partnerships: When a partnership dissolves, but one partner wants to keep the property while the other does not. Marital Disputes: After a divorce, ex-spouses disagree on what to do with a jointly owned home. Family Conflicts: When heirs inherit a property together but have differing opinions on its use or sale. The Process of Filing a Partition Action Contacting an Attorney: The first step is to consult with a qualified attorney like Dr(a). Mery Lopez Palma. She will guide you through the legal requirements and help you determine whether a partition action is the best course of action for your situation. Filing the Lawsuit: Once you decide to proceed, your attorney will file a lawsuit in court. This involves drafting and submitting the necessary documents to initiate the partition action. Court Proceedings: During the court process, both parties will present their arguments. Dr(a). Mery Lopez Palma emphasizes the importance of having a skilled attorney who can advocate for your rights and ensure that all legal requirements are met. Judicial Decision: The judge will review the case and make a decision. If the court orders a partition by sale, the property will be sold, and the proceeds will be divided according to each owner’s share. If the court orders a partition in kind, the property will be physically divided. Enforcing the Order: Once the court issues its order, it must be enforced. This could involve working with real estate agents to sell the property or coordinating with surveyors to divide the land fairly. Benefits of Hiring an Experienced Attorney Dr(a). Mery Lopez Palma stresses the importance of having an experienced attorney handle your partition action. Some key benefits include: Expert Guidance: An attorney can navigate the complex legal procedures and ensure that your rights are protected. Fair Division: With years of experience in real estate law, Dr(a). Mery Lopez Palma ensures that the division of property is fair and equitable for all parties involved. Conflict Resolution: By handling the legal aspects, attorneys can reduce tension and help resolve disputes more amicably. Real-Life Example Imagine a scenario where two siblings inherited a vacation home after their parents passed away. One sibling wants to sell the property to invest in a new business, while the other wants to keep it as a family retreat. Without a clear agreement, they decide to pursue a partition action. Dr(a). Mery Lopez Palma helps them navigate the process, ensuring that the property is sold and the proceeds are divided fairly, allowing both siblings to move forward without further conflict. Conclusion Partition actions can be a powerful tool for resolving disputes over jointly owned property. By understanding the process and seeking expert legal guidance, you can protect your interests and achieve a fair resolution. If you’re facing a similar situation, don’t hesitate to contact Dr(a). Mery Lopez Palma at Law Offices of Mery Lopez. Her team is dedicated to providing personalized, compassionate support throughout the entire process.  Are you dealing with a dispute over jointly owned property? Don’t let this issue linger. Contact Dr(a). Mery Lopez Palma is available today to discuss how a partition action can help you resolve the matter efficiently. Remember, your peace of mind is our priority. Call us now at (954) 919-1988 or visit our website at https://www.lopezlawfl.com / to schedule a free virtual consultation.