I'm closing on a house in Hernando County next month and I'm getting conflicting info from my realtor and some friends. My realtor automatically filled in a title company on the contract and said "this is who we always use" but I've heard that in some counties the buyer picks and in others the seller picks?
I'm also a little confused about what I'm even paying for. The quote shows title insurance, title search, and closing fees but I don't really understand what each one does or if these prices are standard.
Is it normal to just go with whoever your realtor suggests or should I be shopping around? And if the seller is paying for title insurance, does that mean they get to choose the company?
Any advice from people who've been through this would be really helpful. I don't want to mess anything up or overpay because I didn't know better.
Update: Thanks for all advices, I've decided to go with Time To Close Title. They were way more responsive than the original company my realtor suggested.
If you don’t trust your realtor you pick the title company then. But they will push their company to streamline the process. But you have a say.
Thanks for imput
If you don't trust your realtor, why hire them in the first place? Always hire a person you trust for every aspect of the job you hire them for.
Things happen dude. People tell you one thing to get your business and do another. It’s called real world, the person has to pivot at this point.
Realtor here.
On most of the contracts used in Florida, it states that the person who chooses title pays for the Owner's Title Policy. And in most cases the seller chooses, though it is negotiable.
However that's just one part of closing costs, usually $1000 - $4000.
Many of the other fees are actually regulated by the state.
So the net result is title companies don't vary too drastically in price. However they do vary drastically in *service*. There's nothing more annoying than a title company that doesn't respond, answer the phone or waits to complete the work until right before the deadline.
It's kinda like lenders. There's not much variance in interest rate, it's the care and service that varies so widely.
That makes sense. How do you usually recommend clients choose a title company based on service reviews, personal experience, or something else?
Professional experience. You should trust your agent on this one. Title typically doesn't pursue online reviews since the public isn't really their market.
Get yourself a real estate attorney. Not only will they provide rhe title insurance, they will see your deal,all the way thru closing making sure your realtor bank etc. arent taking advantage of you, cutting corners on inspection times, other time limits. If you already signed the contract it may be too late, but, your real estate attorney will ALSO review the contract and make sure youre not getting screwed in some other way. Get a real estate attorney, it will not cost much more. Peace of mind is priceless, especially these days of fast rushed deals and high pressure brokers realtors etc.
I’ve never picked the title company. My realtor always did that part. I have bought 2 homes in FL and sold one.
Same here. We purchased a condo and I don’t ever remember being asked by anyone what title company we wanted to use. We just let the realtor take care of that.
More important than the title company is the underwriter. If your situation is complex at all I highly suggest to avoid the big 3 underwriters who are Fidelity, WFG, and Old Republic.
If you can stick with smaller companies you'll be far happier. Those big three think they make the rules because they do and they seem to get away with it
Such a bullshit fee. how many times can a company run a title on the same f’ing property? Real estate is such a scam. Bunch of m fers reaching into your pockets each step of the way.
Wait until you discover property taxes.
Wait til they figure out code liens or judgements can pop up whenever, making at least a title search a thing that should be done many times.
The closing disclosure document should tell you. They have to itemize costs you can and cannot shop for, and typically you can have some input of the title company. But you don’t have to come with one because they will identify one on the form; you can pick another but they do provide one estimate.
In the FAR/BAR contract whoever pays for the title company, picks the title company. In FL, there are 67 countes and by custom, about half the seller picks the title company and pays. It is negotiable. In most cases the Realtor ends up picking the title co especially if its a FTHB but it is something to discuss with your Realtor before you sign.
The title policy is written for the buyer and the cost of the policy itself is at a promulgated rate and can't be changed. The title fees collected at closing vary all over the place and some title companies are excellent, and some are not, like any business.
ETA: You or the seller are paying for a clear title to be delivered to you (without liens or encumbrances). The lender requires a clear title to issue a mortgage. You don't want a surprise (like a lien, encroachment, or other title issue). If there is a problem with the title, the seller has X days to clear the issue (see your contract).
Check the permits ! Don’t use the inspector your realtor recommends! Negotiate with the permits you find ! Check the roof and air conditioning permit !
In most Florida counties (including Hernando), whoever pays for the owner’s title insurance usually gets to choose the title company. If the contract says the seller pays for title insurance, they typically choose. If the buyer pays, the buyer can choose. Realtors often pre-fill a title company just because it’s their “usual,” but that doesn’t mean it’s mandatory.
As for what you’re paying for: the title search checks public records to make sure the seller actually owns the home and there are no liens or surprises. Title insurance protects you (and your lender) if something missed in that search pops up later. Closing/settlement fees are basically the admin work for handling the money, documents, and recording everything.
It’s totally okay to shop around or ask for another quote — prices can vary, especially on fees (title insurance itself is regulated in FL, but the add-ons aren’t). Even if you stick with the suggested company, asking questions is smart and very normal. You’re not rocking the boat — you’re just being an informed buyer.
Usually, as the seller is paying to clear the title, so it can be transferred to the new owner, they select the title company. Usually the buyer's agent will touch base with the seller's agent and confirm which title company the seller wishes to use. Title fees are standard, for the most part. Allowed to go up and down. Is the closing fee. It is generally charged more if a mortgage is involved. Any title company is happy to provide you an estimate of costs. You can do this during your inspection. To feel comfortable and speak up if not.
In my limited experience the seller.
Read your contract to see who is paying.
If it's you, then be aware that letting your agent pick the title company is letting your agent pick your closing costs.
I was under the impression that the person who pays for title gets to pick- my question is- would that be the lender or the person acquiring the loan?
It’s always negotiated in the contract
You or the realtor can choose. My realtor picked one but had no problem changing it when I asked if my friend could handle it thru his company.
If you are trying to save money. You won’t. Just go with who they pick and yes, those are all normal fees.
Usually the party that picks is the party that pays. Take a look at your contract and see who is reasonable for the title cost. If you used an As-Is contract, look to see which box is checked around lines 172-175. That will tell you who is responsible for paying the title charges. Hope that helps.
Do yourself a favor and just Google "promulgated title insurance rates for florida". This will tell you how much you should be paying for the insurance. Also, check the exclusions that are spelled out in the policy and you may decide you don't even need the insurance.
And title is a closing cost that is negotiable as to who's paying for it, buyer or seller. I've found different areas of the state have different "norms" on closing costs but it's all negotiable.
We bought in Citrus county, next county over, and the seller chose the title company and paid for it.
Wonder how turned on he gets talking about this
I’m a Florida real estate attorney and title agent. The person paying for the title insurance picks. Usually, that’s the seller; but it’s negotiable in the contract. Florida has some of the highest title insurance rates in the country, so it’s no small amount.
Whoever pays the title company chooses the title company. The realtor is probably getting a kickback, just like they do with mortgage brokers.
My realtor gets a kick back from the title company he uses.
Welcome to Hernando County. Congratulations on your first home.
Seller picking is customary.
Most real estate agents have a title company they work with, or their firm works with, because of ownership interest.
You have the right to select the title company, but if you don't know of anyone, or have no preference, the agent usually has one to three that they have formed good relationships with and can rely upon. Otherwise, you're picking out of a hat and hoping that it all goes well based on other criteria. Your Realtor may have had poor dealings with that particular title company if you have one in mind. Talk to him or her. You should at this point know what you're paying for and how it works. If not, ask questions. Your closing costs will be about 2 to 3% depending, in addition to the agent commission that's been worked out.
I just moved from there. It used to be a really great community, and still is in a lot of ways. Wishing you all the best. ✌🏽