Buying a home in Boca Raton is exciting, but the last thing you want is a surprise claim on your property after you close. Title insurance is one of those quiet but important protections that helps you buy with confidence. If you are new to Florida or closing in Palm Beach County, a few local customs and coastal nuances are worth knowing. In this guide, you will learn what title insurance covers, who typically pays in our area, common Boca-specific issues, and the steps to a smooth closing. Let’s dive in.
Title insurance basics in Florida
Title insurance protects you against covered financial losses tied to past defects in the property’s title. Think of issues like undisclosed liens, errors in public records, or claims from unknown heirs. Policies are usually issued at closing.
- Owner’s policy: Protects your equity up to the purchase price and lasts as long as you or your heirs have an interest in the property. It is optional but widely recommended.
- Lender’s policy: Required by most mortgage lenders to protect the loan amount. Coverage decreases as you pay down the loan and ends when the mortgage is paid off.
Title insurance focuses on problems that existed before your policy date. It does not cover the physical condition of the home, zoning or land-use laws, most environmental concerns, or issues that arise after the policy date unless you added specific endorsements.
Who typically pays in Palm Beach County
In South Florida, including Palm Beach County and Boca Raton, it is common for the seller to pay for the owner’s title policy. The buyer typically pays for the lender’s policy if financing is involved. This is a customary practice, not a legal requirement, and you can negotiate it in your contract.
Title companies and licensed title agents commonly handle closings here. Some consumers use closing attorneys, but most residential transactions are closed by title companies that provide escrow services, conduct the search, and issue policies. If you prefer a specific title company, be sure to address it in your offer.
The title search and commitment
Once you are under contract, the title company orders a search of public records. In Palm Beach County, that generally includes recorded deeds, mortgages, liens, judgments, probate filings, tax certificate histories, and any easements or covenants tied to the property. For homes in associations, your team will also request association documents and estoppel letters to verify balances and fees.
You will receive a title commitment listing what the policy will cover and any exceptions or requirements that must be cleared before closing. Review this document carefully. Ask your title officer which exceptions can be removed and how, and who is responsible for each requirement.
Surveys and endorsements
A boundary survey is often recommended for single-family homes and may be required by your lender. Surveys confirm the legal description, boundary lines, easements, and possible encroachments. Condominium purchases often do not require a new survey because the unit is described differently in the documents.
You can add endorsements to expand coverage for specific risks, such as survey matters, access rights, or condominium-related items. Endorsements cost extra, but they can narrow or remove certain exceptions on your commitment.
Boca and coastal issues to watch
Buying in Boca Raton comes with some local title considerations. Awareness helps you ask the right questions early.
- HOA and condo assessments: Associations in Florida can place liens for unpaid assessments. An estoppel letter helps confirm balances, transfer fees, and compliance before closing.
- Homestead requirements: Florida homestead rules can affect how property is conveyed and may require spousal signatures or special documentation. Title professionals will guide the process, and an attorney may be appropriate for complex situations.
- Probate and heirs: If the property passed through an estate or survivorship, the title search must confirm that prior transfers were handled correctly. Unknown heirs can raise claims later if probate steps were missed.
- Foreclosures and tax sales: Previous foreclosures or tax deed histories in the chain of title can affect marketability. Your title search should flag these items so they can be addressed.
- Coastal and waterfront details: Waterfront lots can involve riparian rights, seawall records, erosion or accretion issues, and access considerations. A careful survey and review of recorded easements are essential.
- New construction and recent work: Construction and mechanic’s liens can attach during and shortly after work is performed. Make sure lien periods and releases are handled properly if you are buying new or newly renovated.
What title insurance does not cover
Title insurance is powerful, but it is not a catch-all. It generally does not cover:
- Zoning or land-use regulations
- Future survey or boundary issues unless you add endorsements
- Environmental conditions
- Physical condition of the property
- Matters that arise after your policy date
Your specific coverage depends on the policy form, your title commitment’s exceptions, and any endorsements you add. Ask your title officer to explain what each endorsement does and how it changes your coverage.
Costs, shopping, and value
Florida consumers can shop for title services. Pricing reflects regulated practices and the property’s purchase price, plus settlement and recording fees set by the provider. You can and should compare total estimated costs and services.
Smart ways to manage costs and value:
- Compare fee quotes that separate the insurance premium from settlement, courier, and recording charges.
- Ask whether simultaneous issue or reissue rates apply when an owner’s and lender’s policy are issued together or when a prior insured policy exists.
- Review your Loan Estimate and Closing Disclosure for clarity on title-related fees. If anything looks off, ask for an explanation and updated figures.
Step-by-step: how your closing unfolds
Here is a simple roadmap to keep you on track.
- Pre-contract
- Discuss who will choose the title company and who will pay for each policy before you submit an offer.
- Sellers should gather prior deeds, surveys, mortgage payoff statements, and HOA or condo documents to avoid delays.
- Title search and exam
- The title company searches county records and related sources.
- You receive a title commitment outlining exceptions and requirements.
- Survey and endorsements
- Order a survey if required or recommended for your property type.
- Decide on endorsements that fit your risk profile, such as survey or condominium endorsements.
- Clearing items and closing
- The title company coordinates lien payoffs, tax prorations, and association estoppels, and resolves required items in the commitment.
- You sign final documents and policies are issued at closing or shortly after. Some recently recorded items may require gap coverage or endorsements.
- Post-closing
- The owner’s policy is delivered to you and the lender’s policy to your lender. Store your policy with your deed and share a copy with your heirs or attorney.
Practical checklist for Boca buyers
Use this quick list to stay organized:
- Confirm who will order title and which title company will close your transaction.
- Clarify who pays for the owner’s and lender’s policies, and document it in your contract.
- Review the title commitment as soon as you receive it and ask what can be cleared before closing.
- For condos and HOA communities, request the estoppel letter and review fees, balances, and transfer requirements.
- Consider a boundary survey for single-family homes and discuss a survey endorsement with your title officer.
- Ask which endorsements are common for your property type, such as condominium, access, or mechanic’s lien coverage.
- Keep copies of your owner’s policy and closing documents in a secure place.
When to involve an attorney
Title insurance addresses many risks, but some situations are best handled with legal counsel. If homestead, probate, or inheritance issues are involved, or if there are boundary disputes or complex lien claims, consult a Florida real estate attorney. Your title company and agent can help you identify when that extra support is useful.
Ready for clarity on your Boca closing?
A smooth closing starts with clear expectations and the right team. If you want help negotiating who pays for title, selecting a trusted title partner, and understanding your commitment and endorsements, you are not alone. Connect with a local advisor who can guide you step by step and make sure nothing is missed.
If you are planning a move in Boca Raton or nearby coastal communities, reach out to KDMRealtor to schedule a complimentary consultation in English or Spanish.
FAQs
What is title insurance for Florida homebuyers?
- Title insurance protects you from covered financial losses tied to past title defects, with an owner’s policy for your equity and a lender’s policy for the loan.
Do Boca Raton sellers usually pay for the owner’s policy?
- It is common in Palm Beach County for the seller to pay the owner’s policy and the buyer to pay the lender’s policy, but it is negotiable in the contract.
How long does an owner’s title policy last in Florida?
- It lasts as long as you or your heirs have an ownership interest in the property, up to the policy amount.
Do I need a new survey for a Boca condo purchase?
- Condominiums typically do not require a new boundary survey because units are described differently, but your lender and title officer will confirm.
How do HOA or condo liens affect closing in Palm Beach County?
- Unpaid assessments can result in association liens that must be cleared before closing; an estoppel letter helps confirm balances and fees.
What are endorsements and should I buy them?
- Endorsements are add-ons that expand coverage for specific risks, such as survey or access issues; ask your title officer which are appropriate for your property.
