Are you writing an offer in Fort Lauderdale and wondering who pays for title insurance? You are not alone. In South Florida, the answer depends on local custom and your contract. When you understand the difference between Broward County and Miami-Dade, you can negotiate with confidence and protect your bottom line. Let’s dive in.
Quick answer: Broward vs. Miami-Dade
In Miami-Dade, sellers typically pay for the owner’s title insurance policy, while buyers usually pay for the lender’s policy if there is a mortgage. This seller-paid owner’s policy custom is well established and widely expected in Miami-Dade.
In Broward County, including Fort Lauderdale, it is more mixed. Who pays the owner’s policy is often negotiated and can depend on the neighborhood, price point, and whether it is a buyer’s or seller’s market. The buyer still usually pays for the lender’s policy.
Florida rules and what is regulated
Florida law does not require a specific party to pay for title insurance. Who pays is set by custom and written into the contract. That means you should never assume. Put it in writing.
Title insurance premiums in Florida are regulated at the state level. The premium is a one-time charge based on the purchase price for the owner’s policy, and on the loan amount for the lender’s policy. Because the rates are regulated, the dollar amount is predictable for a given price.
What each policy covers and who pays
- Owner’s policy: Protects your ownership interest. In Miami-Dade, sellers commonly pay this. In Broward, it is negotiated and may be paid by the buyer, seller, or split.
- Lender’s policy: Protects the lender’s lien. If you are financing, your lender will almost always require this. Buyers usually pay for it.
Typical costs and what to expect
Title insurance is a one-time premium paid at closing. It is not a monthly cost. The premium is based on a regulated rate schedule, so you can ask a title company for an exact quote for your purchase price.
Expect separate line items for search and exam, endorsements, and recording fees. These vary by title company. Ask for a sample settlement statement so you can see how each item affects cash to close or seller net.
How this affects offers and net proceeds
When a seller pays the owner’s policy, the seller’s closing costs rise by that premium amount plus related title fees. That reduces net proceeds. If the buyer pays the owner’s policy, the buyer’s cash to close increases accordingly.
- Buyers: In Miami-Dade, it is common for offers to assume seller pays the owner’s policy. In Broward, confirm in your offer whether the seller will pay, you will pay, or you will split it.
- Sellers: If your buyer is comparing your Broward home to Miami-Dade listings, they may expect the seller to cover the owner’s policy. Decide in advance whether offering to pay that premium helps your position or whether you prefer to adjust price instead.
Contract language and closing mechanics
Most Florida contracts include a checkbox or clause for who pays title insurance. Use explicit language so there are no surprises at closing. A simple approach is to state who pays the owner’s policy and that the buyer pays the lender’s policy.
The party paying the owner’s policy will see that charge on the settlement statement. The title company issues separate owner and lender policies after closing and recording.
Negotiation strategies in Fort Lauderdale
- Price vs. costs: If a buyer asks you to pay the owner’s premium, you can counter with a price adjustment or offer to split the cost. Buyers may prefer a seller credit for title because it is a one-time benefit without raising loan amount.
- Market dynamics: In a strong seller’s market, buyers may agree to pay more closing costs, including the owner’s policy. In a cooler market, sellers may cover it to attract offers.
- Splitting the premium: Sharing the owner’s policy cost is a practical middle ground when both sides want the deal.
Quick checklist before you write or accept an offer
- Confirm local custom for your specific neighborhood and price point.
- Get an exact title premium quote from a local title company for your price.
- Decide who will pay the owner’s policy and put that in the offer.
- If you are financing, budget for the lender’s policy as a buyer.
- Ask for a sample settlement statement showing cash to close and net proceeds under both scenarios.
- Remember: Practices change. Confirm with your agent, lender, or title company for today’s local custom.
If you are weighing options in Fort Lauderdale or comparing to Miami-Dade, we can help you structure the cleanest path to closing and protect your net. Ready to talk through strategy for your next offer or listing? Schedule a free consultation with Dija Phaire and Eliot Rodriguez.
FAQs
Who usually pays owner’s title insurance in Miami-Dade?
- Sellers typically pay the owner’s policy in Miami-Dade, while buyers usually pay the lender’s policy if there is a mortgage.
Who usually pays owner’s title insurance in Broward County?
- It is mixed and often negotiated in Broward; either the buyer, the seller, or a split may be customary depending on market conditions and neighborhood.
Does the buyer pay the lender’s title policy in South Florida?
- Yes, buyers usually pay for the lender’s policy because the lender requires it with a mortgage.
Are title insurance premiums in Florida regulated?
- Yes, the premium rates are regulated at the state level and are a one-time charge based on the purchase price or loan amount.
Can a buyer ask a seller to pay the owner’s title policy in Broward?
- Yes, buyers often request this in Broward; sellers may agree, counter with a price adjustment, or propose splitting the cost.
