Buying in Boca Raton and hearing a lot about title insurance? If you are moving from another state or buying in Florida for the first time, the terms and costs can feel unfamiliar. You want a smooth closing and protection that actually matters once you own your home. In this guide, you will learn what title insurance covers, why it is important in Boca, who typically pays, what it may cost, and how to prepare for closing day. Let’s dive in.
Title insurance basics
Title insurance is a one-time premium you pay at closing to protect against past problems in the chain of title. It is different from homeowner’s insurance and does not cover the physical condition of the property. For a plain-language overview, start with the CFPB’s guide to title insurance or ALTA’s consumer explainer.
Two policies you may see
- Owner’s policy: Protects your equity and ownership interest for as long as you or your heirs hold title. It is optional but strongly recommended.
- Lender’s policy: Required by most lenders to protect the lender’s security interest. It lasts until the loan is paid off.
What title insurance generally covers
- Forged or improperly executed documents.
- Unknown heirs or claims by undisclosed spouses.
- Recording mistakes or omissions in public records.
- Fraud in the chain of title, including impostor sellers.
- Liens that were missed in the title search, such as contractor or tax liens.
- Errors in wills or probate documents that affect ownership.
If a covered issue appears, the insurer typically provides legal defense to clear the title or pays losses up to the policy limit.
What title insurance does not cover
- New matters after the policy date, such as future liens or code issues.
- Survey-related boundary or encroachment disputes unless you add a specific endorsement.
- Physical defects or environmental problems.
- Known, recorded exceptions shown in your title commitment.
You can add endorsements to expand protection for specific needs, such as survey, condominium, access, or foreclosure-related coverage. Endorsements add cost.
Why it matters in Boca Raton
Florida uses title insurance in almost all transactions, and rates are filed with the state. Local customs influence how costs are split. In Boca Raton and greater South Florida, these risks are common and explain why buyers rely on title insurance:
- Contractor and construction liens. Subcontractors or suppliers who were not paid on prior work can file claims that attach to the property.
- Probate and estate claims. With frequent intergenerational transfers in Florida, undisclosed heirs or probate errors can surface.
- Recording errors or unrecorded instruments. Rapid development increases the chance of mistakes in public records.
- HOA and condo issues. Boca has many associations and condominiums. Review governing documents early to understand assessments and restrictions and ask about condo-focused endorsements.
- Flood and coastal factors. Flood risk does not create a title defect, but it affects lending and insurance. Check your address on the FEMA Flood Map Service Center. Title insurance does not cover flood damage, so coordinate with your insurance and survey needs.
Who typically pays in Boca
In many Boca and South Florida transactions, the seller commonly pays for the owner’s policy and the buyer pays for the lender’s policy and loan-related fees. That said, it is a custom, not a rule. The purchase contract controls who pays each item, and terms are negotiable by listing and by deal. Confirm the allocation on your Closing Disclosure before signing.
What you may pay at closing
Title insurance premiums in Florida are paid once at closing. Exact premiums are based on insurer rate schedules and the purchase price and loan amount. When both owner’s and lender’s policies are issued together, there is often a discount on the combined cost. Beyond the premium, expect separate line items for title search and exam, closing or settlement fees, recording, and any endorsements.
Common closing statement components include:
- Owner’s title insurance premium
- Lender’s title insurance premium
- Title search and exam fees
- Closing or settlement fee
- Recording fees for the deed and mortgage
- Endorsements, if selected
- Courier or wire fees
- Prorations for taxes and HOA dues and any escrow deposits
Hypothetical cost example
Scenario: $600,000 purchase in Boca Raton with a 20 percent down payment.
Assumptions for illustration only:
- Owner’s premium about 0.50 percent of purchase price: $3,000
- Lender’s premium about 0.25 percent of a $480,000 loan: $1,200
- Title search, exam, closing fees, and endorsements: $400 to $800
- Recording and courier: $150 to $350
Estimated total title and closing-related fees: roughly $4,750 to $5,350.
Important: These figures are examples, not quotes. Ask your title company for a written title quote and confirm any simultaneous issue discounts and endorsement pricing. Florida regulates title insurance, and insurers file rate schedules with the state, so the Florida Office of Insurance Regulation’s title resources can provide useful background on how premiums are set.
How to choose your title company
Florida closings are often handled by licensed title companies or settlement agents. Your provider will coordinate escrow, the title search, curative work, and the actual issuing of the policy. Consider these tips:
- Ask for a sample title commitment and a preliminary quote once you are under contract.
- Compare fees and communication style. Clear explanations during curative work can save time.
- Verify licensing and reputation. Strong local experience in Palm Beach County is helpful.
Closing-day checklist for Boca buyers
Before closing
- Order or confirm your title commitment early and review all exceptions with your agent or attorney.
- Request that problematic exceptions be cleared before closing, such as judgment liens.
- Review HOA or condominium documents and budgets as soon as possible.
- Confirm flood insurance requirements and secure a binder if needed.
- Decide which endorsements you want and confirm pricing.
- Verify wiring instructions by phone using a known number. Watch for wire fraud.
- Confirm who pays for owner’s and lender’s policies in the contract.
- If you plan to claim Florida homestead, review timing and documents with the Palm Beach County Property Appraiser. You can start with the main Property Appraiser website.
What to bring to closing
- Government-issued photo ID.
- Proof of funds for cash to close, per the title company’s instructions.
- Verified wire instructions for any disbursements.
- Homeowner’s insurance binder naming your lender as loss payee.
- Any required powers of attorney or lender-specific documents.
What happens at closing
- The closer reviews your HUD-1 or Closing Disclosure and all prorations.
- You sign loan documents, affidavits, and policy-related forms.
- Funds are collected and disbursed, then the deed and mortgage are recorded with the Palm Beach County Clerk. For recording and official records information, visit the Palm Beach County Clerk & Comptroller.
- The title company issues the policy. The final owner’s policy is usually delivered after recording.
After closing
- Confirm delivery of your owner’s policy and keep it with your closing packet.
- File your Florida homestead exemption if eligible.
- Save your Closing Disclosure and wire confirmations in a safe place.
Recommendations for out-of-state buyers
- Choose a local title company with proven Boca Raton experience and responsive communication.
- Ask about remote or mail-away closing options and remote online notarization if you cannot attend in person. Confirm your lender accepts it.
- Work with a Boca-focused agent or attorney who understands HOA practices, flood zones, and local recording timelines.
- Confirm that any access easements or recorded restrictions fit your intended use.
- Protect your funds. Always verify wiring by phone using a number you already have for your title company or lender.
Buying in a coastal market like Boca Raton comes with unique details. With the right title insurance and a clear plan, you can close with confidence and enjoy your new home. If you want local guidance from offer to closing, schedule a private consultation with the Weppner Group.
FAQs
Do Boca Raton buyers really need an owner’s title policy?
- Yes. An owner’s policy protects your ownership interest for as long as you hold title. Even when the seller pays, make sure the policy insures you for the full purchase price.
Will my lender’s title policy protect me as the buyer?
- No. A lender’s policy protects only the lender’s lien. An owner’s policy is separate and recommended for your protection.
Does title insurance cover future problems after I close?
- Title insurance covers defects and claims that stem from past events. It does not cover future land-use changes, new liens, or physical defects.
How long does an owner’s title policy last in Florida?
- It lasts as long as you or your heirs own the property. Lender policies last until the loan is paid off.
How can I estimate my title insurance cost in Boca Raton?
- Ask your title company for a written title quote and preliminary title commitment, then confirm any simultaneous issue discounts and endorsement fees before closing.
