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Title Insurance Cost Florida – The Average in Today’s Market

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When you are in the process of buying a new home, the last thing you want to worry about is finding out the home you wish to buy has a lien against it, or something worse, the homeowner isn’t the person you’re buying the house from. This is where title insurance comes into play.

Not only will this insurance protect the homebuyer, but it will also protect the lender.

Want to learn more about how much is title insurance in Florida? If so, you will want to keep reading on below! In this Florida title insurance cost guide, we will go over the importance of this insurance and who you can contact for alternative solutions.  

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What is title insurance?

Before we get into how much is title insurance in Florida, let’s first define what title insurance even is. When you first buy, sell, or finance a home, the transaction is typically filed in the public archives. This allows people to know who is the registered owner of the house just in case someone tries to claim that they are the registered owner. 

Title insurance is an indemnity insurance that protects homebuyers and lenders from any financial losses sustained from a faulty title. There are two types of title insurance: Lender’s title insurance and owner’s title insurance.

The homebuyer typically purchases the lender’s title insurance to protect the lender’s interest. The seller often buys for the owner’s title insurance to protect the buyer’s equity in the home

Owner’s title insurance

As mentioned above, this insurance covers the interest of the person buying the home. The insurance will help protect a buyer in case someone states they have an open claim against the home they want to buy. 

Examples of claims against a property:

There could be a contractor stating that they did work on the house and did not receive payment regarding unpaid work. There also could be a possible environmental lien or a notice of pending legal action. 

Lender’s title insurance

Lender’s title insurance only protects the interest of the lender, not the current owner or the new homebuyer. If any claims against the property affect the homebuyer’s equity in the home, that will go through the owner’s title insurance. If anyone creates any claims involving the loan, this title insurance will take care of that. 

How much is title insurance in Florida?

The Florida state government sets the price for title insurance in Florida. The average cost is between $500 to $1500. Most homeowners purchase this insurance when they buy property in Florida because more mortgage companies require it. 

Cost of title insurance in Florida

The title insurance cost in Florida typically follows a state-mandated formula. The price of your title insurance depends on whether you buy both title insurances or just one over the other. 

Other factors that affect the Florida title insurance price:

  • Is the home refinanced?
  • Did you buy the house?
  • Home’s purchase price 
  • Home loan amount
  • Previous owner’s title insurance

To calculate the owner’s title insurance price, you will need to know the title insurance rate. The rate is $5.75 per thousand for the first $100,000.

Any amount higher than $100,000 but lower than $1,000,000 is $5.00 per every thousand. A one million to five million dollar policy costs $2.50 per every $1,000. 

Title search fees

It is essential to know that you will most likely need to pay for the title search fees. This fee can cost around $100, depending on the title search company.

Title insurance premiums are not a monthly cost; you will need to pay this all at once. Where you live in Florida also plays a huge factor in who needs to pay for this title insurance.

For example, if the property is within Sarasota County, Miami Dade County, Broward County, or Collier County, the buyer pays for the title insurance. In all of the other counties, the seller pays for the insurance. 

Who picks the title insurance company?

In Florida, your lender must approve of the title insurance agency you choose. Make sure to review with your lender before you pick any title insurance company. If you do not, you will waste money because you will need to go with a different company. 

Alternatives to buying Florida title insurance

If you do not want to go through the traditional way of selling your home, you have the option to sell to an iBuyer. When you sell your house the conventional way, you will have to pay many fees out of pocket before you even close on the purchase. 

What is an iBuyer?

An iBuyer, also known as an Instant Buyer, is a company that uses artificial intelligence (AI) to generate the value of your home. This AI uses data from your property and other mathematical algorithms to create an automated instant all-cash offer on your home.

Several different iBuyer companies are more local to your area, and there are some national iBuyers. It is best to contact several iBuyers, so you have a better idea of who has the best terms and offers.

How does an iBuyer work?

The goal of an iBuyer is to take away the anxiety of selling your home and simplify the entire home buying and home selling process. After you input some information, you will hear back from an iBuyer.

They will most likely have a few questions about the home before they move forward with the offer. The best part is, you can do this all from the comfort of your phone, and you can sign your papers online!

iBuyer process

You will need to follow a few steps before you can close on your home sale. If you follow the steps timely, you can close within a few days!

Request an offer

Once you locate an iBuyer that you want to work with, you will need to input your personal contact information and information about the home.

If your home meets the criteria, the iBuyer will send you a quote within 48 hours. At this point, they will most likely call you about additional information if needed. 

Review the offer

Most iBuyers give you about five days or so to make your decision. The offer they give you will break down any fees or closing costs and your expected net proceeds.

If you have a few iBuyers in mind, this would be the best time to request different quotes so you can compare and see which of the offers best suit you. 

Accept the offer

If you are happy with the offer, you can reach out to the iBuyer online or by phone to let them know that you accept the offer. The iBuyer will then need to send someone to inspect the home.

The purpose of the inspection is to ensure that your home matches what you put on the application. If there are any repairs needed, they will let you know right away.

You won’t have to worry about paying out of pocket for these repairs. You won’t even have to worry about waiting for them to complete the repairs before you close! The iBuyer will deduct the repairs from your net proceeds, and they will take care of the repairs when you move out. 

Choose your closing date

With the repairs out of the way, it is time to pick your closing date. As mentioned earlier, you can close within a couple of days, or you can close within a few weeks. The choice is yours.

Most iBuyers allow you up to two months to close and move out. Once you pick your closing day, you get to move on to your next adventure!

Why choose an iBuyer?

If you want a quicker way to sell your home, you should go through an iBuyer. For example, let’s say that you were recently offered a dream job in another city and you need to move within the next month. You definitely won’t have enough time to deal with the lengthy process of selling your home with a real estate agent.

You may not even have enough time to improve or renovate your home. Not only will you have to deal with the old mortgage, but you will also have to deal with finding a new home in the new city. 

When you go through an iBuyer, you no longer have to deal with selling your home the traditional way. You have the opportunity to close within weeks and move on to your new home. No more worrying about two mortgages!

Sell your home today!

If you want to avoid the long, drawn-out process of selling a home, you have the option to sell to an iBuyer. Not only is this process simpler, but it is also a faster way to sell your home.

The best part is, the iBuyer takes care of the entire home selling process on your behalf. You now no longer need to worry about how much title insurance is in Florida. If you are ready to learn more about selling your home, submit your address now!

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