Have you heard you need title insurance to buy in South Miami Heights but are not sure what it actually does? You are not alone. Many buyers focus on inspections and appraisals, then rush through the title work even though it protects your ownership. In this guide, you will learn what title insurance covers in Florida, how premiums are set, who typically chooses the closing agent in Miami‑Dade, and how to budget with confidence. Let’s dive in.
What title insurance covers in Florida
Title insurance protects you from financial loss caused by certain title defects that exist on or before your closing date. Coverage often includes forged or fraudulent deeds or releases, undisclosed or missing heirs, and errors in public records. It can also address hidden liens or judgments and improperly recorded easements that cloud ownership.
If a covered claim arises, the policy typically pays legal defense costs and covered losses up to the policy limit. You buy it once at closing, and it stays in force as long as you own the property. In a fast‑moving market like Miami‑Dade, this protection can be a smart backstop for your equity.
What title insurance does not cover
Title insurance is not a home warranty or property insurance. It does not cover physical issues like roof leaks, pests, mold, hurricane damage, or code and zoning violations. It generally does not cover issues created after your policy date, such as new liens recorded later.
Policies include exceptions that limit coverage for matters listed in the title commitment, such as recorded easements, restrictive covenants, or survey exceptions. You can sometimes add endorsements to narrow or remove certain exceptions, depending on the risk and the insurer’s approval. Flood risk and flood damage are not covered by title insurance, so consider separate flood insurance when appropriate in Miami‑Dade.
Florida premiums and how rates work
Florida uses a promulgated rate system for title insurance premiums. That means base premium rates are set by the state and applied to the insured amount, which is typically your purchase price for an owner’s policy or your loan amount for a lender’s policy. The premium is a one‑time cost you pay at closing.
- An owner’s policy protects your ownership. The insured amount usually equals the purchase price, and coverage lasts as long as you hold title.
- A lender’s policy protects your mortgage lender. It is usually required when you finance the purchase, and the premium is based on the loan amount.
You may qualify for a reissue discount if a prior owner’s policy exists and meets the insurer’s criteria. You can also expect additional costs for endorsements that expand coverage, such as condominium, survey or access endorsements. Since fees for endorsements and closing services can vary, the best way to get an exact number is to request a written quote from a local title company early in the process.
Who chooses the closing agent in Miami‑Dade
Florida law does not assign one party to choose the title or closing company. The standard contracts leave selection to negotiation between buyer and seller. In South Florida, it is common for the seller or the seller’s broker to pick the title company, but this is a custom, not a rule.
If the seller selects the title company, you can still advocate for reputable local providers and request specific endorsements. Your lender may also require an approved closing agent or an attorney closing. To avoid confusion, put the choice of title or settlement agent in the purchase contract and confirm responsibilities in writing.
Budgeting your title and closing costs
Title‑related line items you might see on a Closing Disclosure include:
- Owner’s title insurance premium
- Lender’s title insurance premium
- Title search and exam fee
- Closing, escrow, or settlement fee
- County recording fees for deed and mortgage
- Endorsements, if elected
- Courier, wire, and notary fees
- Payoff coordination and disbursement fees
- Escrow fees for holding and disbursing funds
In Miami‑Dade, customs can vary by neighborhood and contract. It is common for the seller to pay the owner’s policy, while the buyer pays the lender’s policy and lender‑required items. That said, your contract controls who pays what, so always confirm the allocation in writing and check the final Closing Disclosure.
To get precise numbers, ask the title company for a written preliminary quote that includes any reissue discount, endorsements, and all closing or recording fees. Compare that with your lender’s Loan Estimate and final Closing Disclosure. If your contract allows, get one or two comparison quotes to review service levels and fees.
Practical checklist for South Miami Heights buyers
Use this step‑by‑step list to stay organized and avoid surprises.
Before you sign the contract
- Ask your agent about local custom for who selects the title company in South Miami Heights.
- If you have a preferred title company, negotiate to name them in the contract.
- Request any information about prior title policies from the seller that could qualify you for a reissue discount.
Early in escrow
- Request the title commitment as soon as it is available and review all exceptions.
- Ask for a written, itemized quote that shows owner’s and lender’s premiums, endorsements, escrow fees, and recording fees.
- Confirm in writing who pays each line item based on the contract.
Recommended questions for the title or closing agent
- “Please provide a preliminary title commitment and an itemized closing estimate.”
- “Is a reissue or simultaneous issue discount available, and what is the price with and without it?”
- “Which endorsements are recommended for this property type, and what do they cost?”
- “Who will hold escrow funds, and what are your wire and notary procedures and fees?”
- “What are current county recording fees and the expected timeline for recording?”
Buyer protection tips
- Read the title commitment carefully, especially Schedule B exceptions. Ask to clear or insure over any material issues before closing.
- Consider endorsements that fit local risks, such as condominium or survey and access coverage, when appropriate.
- Verify that the owner’s policy lists you correctly as the insured and that the policy amount equals the purchase price.
Local notes for Miami‑Dade
- Many South Miami Heights homes are part of an HOA or are condominiums. Ask about unpaid assessments or association liens and whether any endorsements can help.
- Flood exposure is a separate issue from title. If you are in or near a flood‑prone area, discuss flood insurance with your lender or insurance advisor.
- Florida homestead and survivorship rules can affect title. Make sure spousal signatures and ownership vesting are handled correctly at closing.
Quick scenarios to make it real
- You are buying a condo in South Miami Heights. The title commitment shows recorded condo covenants and a recent special assessment. The assessment status can affect title, so you ask for proof of payment and a condominium endorsement that is appropriate for the property.
- You are purchasing a single‑family home from a seller who bought 18 months ago. You learn there may be a prior owner’s policy, so you ask the title company if a reissue discount applies and request a written quote with and without the discount.
- Your lender needs a closing agent from an approved list. You negotiate to name a title company that meets both your lender’s requirements and your service expectations, then put that selection in the contract.
Key takeaways
- Title insurance protects your ownership from covered defects that existed before closing and typically includes defense costs.
- It does not cover physical property issues or flood damage, and it excludes matters listed as exceptions unless endorsements are added.
- Florida uses promulgated rates for base premiums. Ask for a written quote to confirm premiums, endorsements, and all closing fees.
- In Miami‑Dade, the seller often selects the title company but this is negotiable. Put the selection and cost allocation in the contract.
- Request the title commitment early, review exceptions, and confirm endorsements that fit your property type and risks.
Buying in South Miami Heights should feel exciting, not confusing. If you want local guidance on title, closing steps, and neighborhood nuances, connect with Jon Gilman for a friendly, expert walkthrough of your purchase from contract to keys.
FAQs
Is title insurance required for buyers in Florida?
- Lenders usually require a lender’s policy to protect the mortgage. An owner’s policy is optional for the buyer, but it is strongly recommended to protect your equity and legal defense costs.
Who typically pays for the owner’s title policy in Miami‑Dade?
- Local custom often has the seller pay the owner’s policy, but customs vary by neighborhood and deal. Your contract decides, so confirm in writing.
Does title insurance cover survey or boundary problems?
- Not by default. Survey or boundary issues are commonly excluded unless you purchase an endorsement or the insurer removes the survey exception after review.
Can I shop for title insurance in Florida if rates are promulgated?
- Yes. Base premiums follow the state schedule, but endorsements and closing fees vary. Ask permitted title companies for written quotes and compare.
If a title problem appears after closing, who pays for the legal defense?
- If the claim is covered, the title insurer typically pays defense costs and covered losses up to the policy limit, based on your policy terms and exceptions.
