How to Understand Title Company Fees in Florida

Understanding the fee structure of title companies in Florida is straightforward due to state regulations. The main costs in a real estate transaction handled by a title company are the title insurance premium and the settlement or closing fees.

Title Insurance Premiums: The Promulgated Rate

In Florida, the cost of title insurance is fixed by the state through what is known as the 'promulgated rate.' This ensures that the premium for a title insurance policy is uniform across all title companies. The rate is determined by the purchase price of the property:

• For properties up to $100,000, the rate is $5.75 per thousand dollars of the purchase price.
• For properties valued over $100,000 and up to $1 million, the rate is $5.00 per thousand.

This standardized pricing model means that consumers can choose a title company based on service quality, rather than price shopping for insurance.

Settlement or Closing Fees

While title insurance premiums are regulated, settlement or closing fees are not. These fees compensate the title company for the administrative work involved in the closing process. This includes:

• Coordinating all aspects of the closing with buyers, sellers, lenders, and real estate agents.
• Preparing, reviewing, and managing all legal and closing documents.
• Handling the disbursement of funds to all relevant parties.
• Ensuring all documents are correctly signed, notarized, and recorded with the county.

Because these fees differ from one title company to another, it is crucial to request a detailed quote that outlines all associated costs. At Location Title & Escrow, we are committed to providing transparent pricing and superior service.

Use the Official FRTA Rate Calculator

To accurately calculate the title insurance premium for your specific transaction, the Florida Land Title Association (FRTA) provides an official rate calculator.

Use Official FRTA Rate Calculator