Who Pays For Title Insurance In Florida?

The borrower customarily pays for the lender’s policy when the transaction involves refinancing an existing mortgage. However, the question as to who pays for the owner’s title insurance policy (or any portion thereof, including related title services) usually depends on the location (i.e., county, city, etc.) of the real property. Although the allocation of costs involved in any real estate transaction are negotiable, local custom strongly influences which party, buyer or seller, pays for both the owners and lenders title insurance policy, including related charges.

Section 9: Seller required title insurance

Section 9 of RESPA prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance. See also: 24 C.F.R. 3500.16

May I require that the buyer/borrower use a particular title company as a condition of sale?

No. 12 U.S.C. 2608 RESPA Section 9 states:(a) No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.

(b) Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.

According to HUD, however, section 9 of RESPA does not apply if the seller pays all charges associated with insuring the title to the real property. This would include related title services as well.