In Florida’s dynamic and competitive real estate market, brokers play a critical role in guiding clients through complex transactions. One area that often raises questions is title insurance—an essential protection for buyers, sellers, and lenders alike. Whether you’re a seasoned broker or new to the field, understanding how title insurance works can help you better serve your clients and avoid costly surprises at closing.
Here are some of the most frequently asked questions brokers have about title insurance in Florida—answered by the legal team at Zagury Scott, P.A.
1. What is title insurance, and why is it necessary?
Title insurance protects a buyer or lender against financial loss due to defects in the property title. These defects can include liens, ownership disputes, recording errors, or even fraud. Unlike other types of insurance, title insurance is a one-time premium paid at closing and protects against past issues, not future ones.
2. Who typically pays for title insurance in Florida?
In Florida, it depends on the county. For example:
- In Miami-Dade and Broward, the buyer usually chooses the title company and pays for the policy.
- In Palm Beach County, the seller traditionally handles it.
However, this is negotiable, and the final decision is typically outlined in the purchase contract.
3. What’s the difference between owner’s and lender’s title insurance?
- An owner’s policy protects the buyer’s investment in the property.
- A lender’s policy protects the mortgage lender’s interest in the property.
If a buyer is financing the purchase, the lender will require a lender’s policy. The owner’s policy is optional, but highly recommended.
4. What does title insurance actually cover?
A title insurance policy may cover:
- Unknown liens or encumbrances
- Errors in public records
- Forged documents or fraudulent signatures
- Undisclosed heirs
- Boundary disputes
- Improper legal descriptions
These issues could arise after the transaction closes, making title insurance crucial.
5. Can a broker choose the title company for their client?
Yes and no. While brokers can recommend a trusted title company, clients always have the right to choose their own. What brokers should not do is force a specific title company or receive kickbacks or referral fees, as this is prohibited under RESPA (Real Estate Settlement Procedures Act).
6. How long does a title insurance policy last?
An owner’s title policy lasts for as long as the buyer (or their heirs) owns the property. There are no renewal fees. A lender’s policy lasts until the mortgage is paid in full.
7. What happens if a title issue is discovered after closing?
If the issue is covered under the policy, the title insurance company will provide legal defense and/or financial compensation for any covered loss. This can save the homeowner thousands in legal fees and potential loss of property rights.
8. Why should brokers work with a real estate attorney for title matters?
Working with a real estate attorney like Zagury Scott, P.A. ensures that every aspect of the title process is handled with legal precision. Unlike title companies, attorneys can offer:
- Legal advice
- Contract review
- Title defect resolution
- Dispute negotiation
This adds a layer of protection for both the broker and their client, especially in complex commercial or high-value residential transactions.
🔍 Bonus Tip: Educate Your Clients Early
Buyers and sellers often don’t understand the purpose of title insurance until it’s too late. As a broker, explaining the basics early in the process—and recommending expert partners—can build trust and prevent delays.
💼 Need Help With Title Insurance?
Whether you’re handling a first-time homebuyer or navigating a high-stakes commercial deal, Zagury Scott, P.A. provides legal support and title services you can trust. Our team is dedicated to protecting your transaction from start to finish.
👉 Contact us today to partner with a legal team that understands Florida real estate inside and out.
