Why Some Florida Counties Pay the Buyer's Title Policy and Others Don't

New buyers and sellers in Florida ask the same question constantly: who pays for the buyer's owner's title insurance policy? The honest answer is that Florida has no statute assigning that cost. It is set by local county custom, which means the answer depends on where the property sits.

In a majority of Florida counties, including Orange, the seller customarily pays for the buyer's owner's policy at closing. In a handful of others, most notably Sarasota and parts of South Florida, the buyer customarily pays.

The owner's title policy is a one-time purchase that protects the buyer for as long as they own the home, guarding against hidden liens, title defects, and claims that predate the purchase. It is real protection, and it is priced on a state-regulated rate schedule based on the purchase price. On a $700,000 home, that premium is meaningful to either side of the table.

When the county custom holds, the settlement statement simply reflects it. But because this is custom rather than law, the parties can also negotiate a different split in the contract. That is exactly the kind of line item an experienced agent protects on behalf of his client.

Before we write an offer or a listing, I tell you exactly what the custom is for that county and what the policy will cost. If you are selling in a seller-pay county, that number is built into your net sheet from day one. If you are buying in a buyer-pay county like parts of the Gulf Coast, it is in your closing cost estimate before you ever commit.

No surprises is the whole point. Every county has its habits, and knowing them is part of what a quarter century as a licensed Florida REALTOR buys you.