At a recent presentation I made to a group of realtors in Miami, I realized there was a lot of confusion regarding who pays the title insurance premium. In Florida, the industry standard is based on the county in which the property lies. In Miami Dade County, the buyer usually selects the title company and pays the premium. The title insurance premium is based on the purchase price and is promulgated by the Department of Insurance. Below is an example of how the title insurance is determined:
- Up to $100,000.00$5.75 per $1,000
- Over $100,000 and up to 1 Millions $5.000 per $1,00000
- Over $5 million and up to $10 millions $2.25 per $1,000
- Over $10 Million $2.00 per $1,000.00
It is illegal practice for a title company to charge anything over and above the rate determined by the Department of Insurance.
In Broward and Palm Beach, the Seller selects the title company and pays the premium. It is illegal and considered coercive to force the opposite party to use your title company while making them pay for the premium.
Additionally, on refinances, the owner/borrower is entitled to a reissue credit if they have their prior owner’s title insurance policy.
Lastly, if the seller has their prior policy, the title company should issue a discount on the HUD for the title search.
If you are buying or selling, don’t go it alone. Contact us today to go over your options, your closing costs and your contract. The first consultation is always free.
TRUST | COMMITMENT | RESULTS
Jacqueline A. Salcines