Who Picks the Title Company for a Closing in Florida?

April 20, 2023

Real estate transactions share many rules across different parts of the country, particularly when it comes to the protection of buyers and sellers against potential scams. With that said, the ins and outs of the process can look very different depending on the location; when it comes to Florida closings specifically, certain standards apply to different counties, making things a bit more challenging for newcomers.

If this is your first time taking part in a real estate transaction, then you might be at a loss about the roles that sellers and buyers are expected to fulfill, so today we take a deeper look.

What You Need for a Successful Closing

The closing represents the final stage of a real estate transaction, following a list of steps that buyers and sellers must follow in advance. These requirements are outlined in the escrow contract, and they must be fulfilled before a specific deadline, otherwise you might have to deal with legal repercussions and the delay of the property purchase, which in turn, can affect the final price.

Among other things, a successful closing is preceded by an initial appraisal and follow-up property inspections, the deposit or earnest money, a title search, a new insurance policy, etc. For this reason, the negotiations not only include buyers and sellers, but also real estate agents, escrow lawyers, property inspectors, and mortgage brokers.

The choice of a title company is one of the key points that are broached during the initial negotiations. The title company not only oversees many key steps in the process but also provides many of the assets to protect the buyer's investment during and after the closing process, including title searches and title insurance. These assets prevent the financial losses caused by hidden liens, undisclosed claims, and other issues that could affect the buyer's ownership rights.

Who Picks the Title Company for a Closing in Florida

In most parts of Florida, the seller is expected to pay for title insurance so they're also the ones choosing the title company. This is not a rule set in stone, with clear exceptions in areas like Broward, Miami-Dade, Collier, and Sarasota. Buyers and sellers can always negotiate different terms and have them be reflected in the escrow contract.

And of course, if the buyer has reservations about a particular company, their opinion will have weight in the final decision. After all, title insurance is meant to protect the buyer's investment after the closing.

Here are some tips that can help you, whether you have suspicions about a specific company or if you want to pick the perfect insurance provider out of all the options available in the state:

• Don't settle for one company that seemingly checks all the boxes. Look through different companies in the area and start narrowing down your options depending on their location, professional history, and reputation in the industry. Reputable companies have an online profile with all the relevant information, so doing your research takes less time these days.


• Don't hesitate to share your priorities and reservations with your real estate agent. Your realtor will have up-to-date information about local companies, and their experience will be valuable if you want to recognize the best company to suit your needs.


• As we mentioned earlier, the company's location and history are important factors to consider. If the company doesn't operate in the area where the property is located, you might have to deal with additional paperwork, and adapting the process to the local standards can be a bit trickier.
  
  When it comes to the company's history, check how many years they've been active and how their reputation has evolved over that time. A steady growth in the local market is always a good sign, and it's not hard to check the online reviews over the years.


• Don't rush while reviewing your escrow contract to make sure that you won't be saddled with additional fees, on top of the closing payments you've originally agreed to cover. It's best to be safe than sorry, so we recommend being just as careful with all the documents that come up during the closing process, from the initial purchase offer to the property deed.

Looking for the best title and escrow company to ensure a successful closing? The specialists at Key Title & Escrow will not hesitate to assist you. We understand all the stress that goes with a real estate transaction, so we work hard to encourage communication and transparency during the process. You can count on our specialists to protect your best interests, whether you're a seller, and buyer, or a lender. Just call (305) 235-4571 or toll-free at (800) 547-0006 to get more information about our services depending on your case. Remember that you can also contact our specialists via the website's contact form. Key Title & Escrow is the perfect ally to have on your side during your real estate process!