How to Pick a Florida Title Company

Title insurance protects a property owner or mortgage lender against financial loss caused by defects in the property's title. Title companies search a property's title history, examine the title for defects, prepare closing documents for the purchase or refinance of the property, conduct the closing, disburse closing funds, and issue a title insurance policy. Florida title companies may be managed by an attorney or a state-licensed title agent. When selecting a title company in Florida, you should consider the company's experience, fees and customer service skills.

Instructions

Gather A List of Referrals

1. Ask recent home-buyers in your community for title company recommendations. When you visit the property, ask your neighbors who handled their closings. If you have any friends or family who bought or sold property in the area, ask them about their experiences. Ask about the title company's flexibility in scheduling the closing.

2. Ask your real estate agent and lender which title companies they prefer. These professionals are involved in real estate closings on a daily basis and may have worked with many title companies in your area. They may even steer you to a particular employee within a title company.

3. Ask the seller which title company she used, and always request a copy of the seller's title insurance policy. A title company that has already insured your property should be familiar with any peculiar closing requirements and may be able to offer reduced rates for your title insurance. Having a copy of the seller's title policy may help you get reduced rates with other title companies as well.

Research Your Life of Referrals

1. Call title companies and ask for title quotes based on your purchase price and loan amount. If you have a copy of the seller's title policy, ask whether the title companies can offer a discount (known as "reissue credit") based on the prior policy. Ask whether they have experience closing property in your particular neighborhood.

2. Verify that the title companies are licensed. For attorney-managed title companies, call the Florida Bar Association at 800-342-8060 to verify that the attorney is licensed to practice law in Florida. For title companies managed by title agents, contact the Florida Department of Financial Services at 877-693-5236 to verify that the agent has a Florida license.

3. Contact the Florida Department of Financial Services at 877-693-5236 and the local Better Business Bureau to find out if they have any complaints on file regarding the title companies you are researching.

Tips & Warnings

• Although Florida sets minimum prices for title insurance premiums, other closing costs may be negotiable.

• Some counties and communities have unusual closing requirements. A local title company may have more knowledge about closing your property than an out-of-town title company.

References

• Florida Department of Financial Services: Title Agents and Title Insurance - What You Need to Know When Buying, Selling or Refinancing a Home
• First American Title: Q & A About Title Insurance
• Florida Administrative Code: Rule 690-186.003