The Closing Itself
Who Chooses the Title Company on a Florida Home Purchase?
Direct answer
The purchase contract names the title company and the settlement agent. A blank line is not a choice. When the property will be purchased with the assistance of a federally related mortgage loan, 12 U.S.C. § 2608 says no seller 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. A seller who violates that rule is liable to the buyer in an amount equal to three times all charges made for that title insurance. A cash purchase is not that sentence. Who pays for title insurance is also the contract, not a statute. A common custom in much of Florida is that the seller pays the owner's policy and the buyer pays the lender's policy. Custom is not law. A lender can still require a title company the lender will accept. Time to Close Title does not make the loan and does not pick the lender. The office is at 3087 Anderson Snow Road, Spring Hill, FL 34609. Call (352) 792-1214 to confirm wiring instructions. On a sale we close, we submit the deed, and the mortgage if there is one, for recording after good funds. A quitclaim we only prepare is recorded by the client.
Key takeaways
- The purchase contract names the title company and the settlement agent. A blank line is not a choice.
- On a federally related mortgage, 12 U.S.C. § 2608 bars the seller from requiring the buyer to buy title insurance from one company.
- A seller who violates that rule is liable to the buyer for three times all charges made for that title insurance.
- A cash purchase is not that statute. Who pays is still the contract. Custom is not law.
- A lender can require a title company it will accept. We do not make the loan or pick the lender.
- Confirm a wire by calling (352) 792-1214. On a sale we close, we submit the deed after good funds. A prepare-only quitclaim is recorded by the client.
Who names the title company on a Florida purchase?
The purchase contract names the title company and the settlement agent. The parties agree on that line before anyone signs. A blank line is not a choice. It does not hand the pick to the listing side after the fact, and it does not mean we write a name into a contract that left the line empty.
On the files we close, the title company and the settlement agent are often the same office. The contract can still name them separately. Send the fully executed contract the day it is signed, with every addendum and a contact sheet. That packet is in what realtors send on day one. A draft, or a text that you are under contract, does not open the search. The other answers that belong in that contract are in questions to ask before you open a file.
| Party | What that party can do | What that party cannot do |
|---|---|---|
| Buyer and seller | Name the title company and the settlement agent in the contract before anyone signs | Leave the line blank and call that a choice |
| Seller, when the buyer will use a federally related mortgage | Suggest a company the buyer may accept | Require, as a condition of the sale, that the buyer buy title insurance covering the property from one company |
| Lender | Require a title company the lender will accept | Make the title company the lender, or have the title company pick the loan |
| Title company | Open the file from the executed contract | Choose the lender, or write a name into a blank contract line |
When can a seller not require one title company?
RESPA section 9 is 12 U.S.C. § 2608. The current text says 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. A seller who violates that rule is liable to the buyer in an amount equal to three times all charges made for that title insurance. That is the penalty in the statute. It is not a flat dollar amount.
The section applies to a purchase that will use a federally related mortgage loan. A cash purchase is not that sentence. The cash contract still names the title company. Who pays for the owner's policy on a cash file is still the contract. Read who pays for title insurance.
Who pays is not a Florida statute. A common custom in much of Florida is that the seller pays the owner's policy and the buyer pays the lender's policy. Custom is not law. The contract can say something else. Florida title premiums follow Rule 69O-186.003. We quote the premium on the file. This page does not publish a rate card. Read what Florida title insurance costs.
A lender can still require a title company the lender will accept. That is the lender's overlay. It is not section 2608, and it is not a choice we make. We do not make the loan. We do not pick the lender. Ask the loan officer which companies the lender will accept before the contract is signed.
§ 2608
The seller rule when the purchase will use a federally related mortgage loan.
Three times
The buyer's damages under that section: three times all charges made for that title insurance.
The contract
Who pays is not a statute. Custom often splits the owner's policy and the lender's policy.
How do you name the company and open the file?
Read the title-company line before anyone signs. If the buyer is using a loan, ask the lender which companies it will accept, and do not let a seller treat one company as a condition of the sale. If you are buying your first Florida house, the weeks after the contract is sent are in first-time buyer steps. A financed purchase usually takes 30 to 45 days from the executed contract. Cash can be shorter when title is clear. Those ranges are in how long a Florida closing takes.
Time to Close Title is at 3087 Anderson Snow Road, Spring Hill, FL 34609. Call (352) 792-1214 or toll-free 888-228-0555. Email info@TimetoCloseTitle.com. Hours are Monday through Friday, 9:00 AM to 5:00 PM. Confirm wiring instructions by calling (352) 792-1214. Do not use an account number that arrived only by email. Contact the office to open the file.
On a sale or other funded closing we handle, we submit the deed, and the mortgage if there is one, for recording after good funds. Recording is with the clerk of the county where the land sits. Hernando Official Records are in Brooksville. Pasco records are in Dade City and New Port Richey. Citrus records are in Inverness. The Spring Hill office prepares the file. It is not the clerk. A quitclaim we only prepare is recorded by the client, who pays the documentary stamp tax and the clerk's fee.
Read the title-company line before anyone signs
The purchase contract names the title company and the settlement agent. A blank line is not a choice. Agree on the name before anyone signs.
Check whether a federally related mortgage is in the deal
If the purchase will use a federally related mortgage loan, the seller cannot require the buyer to purchase title insurance covering the property from any particular title company. A cash purchase is not that rule.
Ask the lender which companies it will accept
A lender can require a title company the lender will accept. The title company does not make the loan and does not pick the lender.
Put who pays in the same contract
Who pays for title insurance is the purchase contract, not a statute. A common custom in much of Florida is that the seller pays the owner's policy and the buyer pays the lender's policy. Custom is not law.
Send the executed contract and call before you wire
Send the signed contract the day it is signed. Confirm wiring instructions by calling (352) 792-1214. Do not use an account number that arrived only by email.
Frequently asked questions
Does the buyer or the seller choose the Florida title company?
The purchase contract names the title company and the settlement agent. The parties agree on that line before anyone signs. A blank line is not a choice. When the purchase will use a federally related mortgage loan, the seller cannot require the buyer to buy title insurance covering the property from one particular company.
What does 12 U.S.C. § 2608 say about the title company?
It says 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. A seller who violates that rule is liable to the buyer for three times all charges made for that title insurance.
Does that rule apply to a cash purchase?
No. The section applies to property that will be purchased with the assistance of a federally related mortgage loan. A cash purchase is not that sentence. The cash contract still names the title company, and it still has to say who pays for the owner's policy if the buyer wants one. Read who pays for title insurance.
Can the lender require a title company?
Yes. A lender can require a title company the lender will accept. That is the lender's rule, not ours. We do not make the loan and we do not pick the lender. Ask before the contract is signed. See questions to ask before you open a file.
Who pays for title insurance after the company is named?
The purchase contract. Florida law does not assign the owner's policy to the seller or the lender's policy to the buyer. A common custom in much of Florida is that split. Custom is not law. Premiums follow Rule 69O-186.003. We quote the file. This page does not publish a rate. Read what Florida title insurance costs.
What should the realtor send once the company is named?
The fully executed contract, every addendum, and a contact sheet, the day it is signed. A draft does not open the search. That packet is in what realtors send on day one. A first purchase with a loan usually needs 30 to 45 days. Read first-time buyer steps and how long a Florida closing takes.
Where do you sign, and who records the deed?
The office is at 3087 Anderson Snow Road, Spring Hill, FL 34609. Call (352) 792-1214 or 888-228-0555 before you wire. Do not take wiring instructions from an email. On a sale we close, we submit the deed, and the mortgage if there is one, for recording after good funds, with the clerk of the county where the land sits. Hernando Official Records are in Brooksville. Pasco records are in Dade City and New Port Richey. Citrus records are in Inverness. The Spring Hill office is not the clerk. A quitclaim we only prepare is recorded by the client, who pays the documentary stamp tax and the clerk's fee. Contact the office.