Title Insurance

7 Replies

In your state, who customarily purchases (pays for) the title insurance policy, seller or buyer?

And in the scope of investment property bargains, ie distressed sales, cloudy titles, etc, does anyone these days still buy real estate without title insurance?

I'm in FL and seller typically pays, as long as they are choosing the title company or attorney.

Pretty sure there's no title insurance if property is bought at auction or tax deed sale but not positive.

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I believe it's a standard convention that the seller pays for title insurance as they are guaranteeing their standing to convey title to the property and that their ownership is unclouded. Typically auctions/tax sales carry a disclaimer that no guarantee of title is provided. That's where the buyer's due diligence comes in. While property tax liens are typically in first position with mortgages after that; Federal liens, when they apply, take precedence over ALL other liens.

Hope that helps!

There are 31 states where the seller pays for the owner's title insurance policy. Zach is correct that in Central Florida it is customary for the seller to choose the title company and pay for the insurance, however in Miami/Dade, and I believe Collier County, it is normally paid by the buyer.

A good source for information is ALTA (American Land Title Association)

Negotiable between the parties. 

Account Closed

 All your seasoned investor or investors that know what they are doing will all tell you to buy title insurance. Its the time you don't buy that you'll get a claim that will cost you thousands.

Generally its the seller that pays for title insurance because they are the ones clearing title and transferring it to their buyer. But of course that could be different where you are at. Whoever pays for the title insurance gets to pick the title company. 

I close a lot of double closings or simultaneous closings for my investors and what they will do is pay for the title insurance and all closings costs on the 1st side then have their end buyer on the 2nd side pay all closing costs AND reimburse them for their 1st side closing costs so they make the exact difference between the 1st side purchase price and the 2nd side purchase price.

I am with an investor friendly title company in Orlando and close any property in the state of Florida. If you have an questions or need help with anything please feel free to shoot me an email or call me.

Thank you,

Hi, with my most recent purchase, the Escrower who charged the seller and me the buyer $1k each ($2k total) told me that when i'm ready to sell it, use her and and i will get a credit back for the 2nd escrow fee since I'll be bring the new buyer's business.

I was hesitant to ask her but I'm wondering if it is customary for if a buyer sticks with the same escrower that he bought with to sell back with, the escrower should be expected to do it a 2nd time around for 'free'? Since at least the seller in staying with the same escrower, is bring the escrower $1,000 from the new buyer.

In my instance it is los angeles county, ca.

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