A title company in Florida handles the behind-the-scenes work that moves a real estate sale from signed contract to recorded deed. It searches public records to confirm the seller actually owns the property free of hidden claims, clears any defects it finds, issues title insurance at rates set by the state, holds the money in a regulated escrow account, calculates and remits Florida’s transfer taxes, coordinates the signing of the closing documents, records the deed with the county, and files the required tax reports afterward. In most Florida transactions the same company does all of it; in some, an attorney’s office does the same work under a different license.
Searching the Title and Clearing Defects
The first job is a title search. The company pulls records from the county clerk’s office and other public databases to trace every deed, mortgage, lien, easement, and judgment ever attached to the property. The point is to confirm the seller owns what they’re selling and to flag any “clouds” that could threaten your ownership after closing.
Common findings include unreleased mortgages the seller paid off years ago but never got formally cleared, tax liens from unpaid property taxes or IRS debts, mechanic’s liens filed by contractors who were never paid, judgment liens from lawsuits against a prior owner, utility easements, and restrictive covenants limiting what you can build. Less obvious problems show up too: clerical errors in prior deeds, breaks in the chain of title where a transfer was never properly recorded, forged signatures, and missing heirs with a potential claim. Florida law requires any conveyance of real property to be made by a written instrument signed before two witnesses, and a deed that doesn’t meet those requirements can create a gap in the chain that surfaces years later.1Online Sunshine. Florida Statutes Chapter 689 – Conveyance of Land and Declarations of Trust
When the search turns up a problem, resolving it is part of the service. If a prior mortgage was paid off but never released, the title company contacts the lender for a recorded satisfaction. If an ex-spouse still appears on title after a divorce, a quitclaim deed from that person removes them. Liens from unpaid debts usually get paid off at closing, with the title company disbursing directly to the creditor out of the sale proceeds.
When someone refuses to voluntarily clear a claim, or when ownership itself is disputed, a quiet title action in Florida’s chancery courts may be needed. The court examines the competing claims and enters a judgment clearing the title.2Online Sunshine. Florida Statutes Chapter 65 – Proceedings to Quiet Title That takes time and legal fees and can push a closing out by months. In some cases the title company will instead issue a policy with a specific exception for the defect, or the parties will negotiate an indemnity where the seller agrees to cover any future loss tied to the issue.
Issuing Title Insurance
Once the title is clean (or the known defects are handled), the company issues title insurance. It’s a one-time premium paid at closing that protects against financial loss from title defects that existed before the policy date but weren’t caught during the search. Coverage lasts as long as you own the property, with no ongoing premiums.
There are two policies. An owner’s policy protects your equity in the property. A lender’s policy protects your mortgage lender’s interest and is required by virtually every lender as a condition of the loan. The owner’s policy is technically optional, but skipping it means you personally absorb any loss from a defect that surfaces later.
Florida’s Promulgated Rates
Florida regulates title insurance premiums through the Office of Insurance Regulation. Every title company in the state charges the same rate, so shopping on premium price alone won’t save you money. The schedule is tiered by purchase price: $5.75 per $1,000 on the first $100,000, $5.00 per $1,000 from $100,001 to $1 million, and lower rates for sales above that. On a $400,000 home, the owner’s premium works out to $2,075 ($575 on the first $100,000 plus $1,500 on the remaining $300,000). A simultaneous-issue lender’s policy issued alongside an owner’s policy typically costs a reduced flat amount. Because premiums are fixed, meaningful differences between title companies come down to service, closing speed, and ancillary fees like search and settlement charges.
Who Pays Depends on the County
Florida custom varies by county. In most of the state the seller pays for the owner’s title insurance policy. In Miami-Dade, Broward, Sarasota, and Collier counties the buyer customarily pays. These aren’t legal requirements and the parties can negotiate otherwise, but the default often shows up in standard contract forms and catches out-of-town buyers and sellers off guard.
Holding Escrow Funds
The title company acts as a neutral escrow agent, holding money and documents on behalf of all parties until every condition in the purchase contract is satisfied. The escrow account typically holds the buyer’s earnest money deposit, the lender’s loan funds once wired, and the seller’s proceeds until disbursement.
Under Section 626.8473 of the Florida Statutes, all funds a title insurance agency receives in trust must be immediately placed in a financial institution located in Florida that is a member of the FDIC or the National Credit Union Share Insurance Fund, and the agency must keep separate records of all escrow receipts and disbursements. When an attorney is the closing agent, the same statute requires a separate trust account used exclusively for settlement funds.3Online Sunshine. Florida Statutes 626.8473 – Escrow, Settlement, and Closing Accounts
Disbursement happens only after every contract condition is met: inspections cleared, loan funded, documents signed. The title company then pays the seller, satisfies any existing mortgage on the property, sends commissions to the real estate agents, remits transfer taxes to the state and county, and pays other closing costs out of the proceeds.
Calculating and Remitting Transfer Taxes
Florida imposes transfer taxes on real estate transactions, and the title company is responsible for calculating, collecting, and remitting them at closing. Two taxes apply to most residential sales.
The documentary stamp tax on deeds is $0.70 per $100 of the sale price in every county except Miami-Dade, which charges $0.60 per $100 plus a $0.45-per-$100 surtax on all transfers except single-family dwellings.4Florida Department of Revenue. Documentary Stamp Tax On a $400,000 sale outside Miami-Dade the tax is $2,800. The seller typically pays, but the parties can agree otherwise. A separate documentary stamp tax of $0.35 per $100 applies to promissory notes and mortgages; the tax on the note itself is capped at $2,450, but the tax on the mortgage has no cap.
If the buyer takes out a mortgage, Florida also imposes a one-time nonrecurring intangible tax of 2 mills (0.2%) on the mortgage amount.5Florida Department of Revenue. Nonrecurring Intangible Tax On a $320,000 mortgage that’s $640. This one is the buyer’s responsibility. The title company calculates both taxes, collects from the appropriate party at closing, and remits them when the documents are recorded.
Running the Closing
The title company coordinates the closing itself: preparing the deed, mortgage documents if financing is involved, affidavits, and the settlement statement allocating all costs between buyer and seller. At the table it oversees signing, verifies identities, notarizes signatures, collects funds, and confirms every contract condition has been met before authorizing the transfer.
For financed purchases, federal law requires the buyer to receive a Closing Disclosure at least three business days before closing. The document lays out the final loan terms, interest rate, monthly payment, and an itemized breakdown of every closing cost and fee.6Consumer Financial Protection Bureau. What Should I Do if I Do Not Get a Closing Disclosure Three Days Before My Mortgage Closing? The three-day window gives you time to compare it against your earlier Loan Estimate and catch errors before you sit down to sign. If certain key terms change after the initial disclosure, such as a higher interest rate or a newly added prepayment penalty, the lender must issue a corrected disclosure and the three-day clock restarts.7Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosure FAQs
Remote Closings
Florida allows closings to happen remotely through online notarization. Under Section 117.265, an online notary public can confirm a signer’s identity and notarize documents through a live, recorded audio-video session, with identity verified through a government-issued ID, credential analysis, and knowledge-based authentication. The session must be recorded and the technology secured against unauthorized interception.8Online Sunshine. Florida Statutes 117.265 – Online Notarization Procedures It’s useful for out-of-state buyers of Florida property or sellers who have already relocated. Not every title company offers it, so ask early if you need a remote closing.
Recording the Deed and Handling Post-Closing Reporting
After you sign, the title company records the new deed and the mortgage with the clerk of the circuit court in the county where the property sits. Florida law designates the clerk as the official recorder of deeds, mortgages, liens, and other instruments affecting real property.9Online Sunshine. Florida Statutes 28.222 – Clerk to Be County Recorder Recording puts the world on notice that you own the property; until it happens, your ownership is vulnerable to competing claims. The company also handles final disbursement of any remaining escrow funds, including paying off the seller’s existing mortgage, settling prorated property taxes, and releasing any holdback once conditions are met.
IRS Form 1099-S
For most residential sales the title company files IRS Form 1099-S reporting the transaction. The form must be furnished to the seller by February 15 of the year following the sale, with the IRS filing due by February 28 on paper or March 31 if filed electronically.10Internal Revenue Service. Instructions for Form 1099-S11Internal Revenue Service. 2026 Publication 1099 It gets filed even if the sale isn’t taxable, including sales of a primary home where the gain falls within the Section 121 exclusion.
FIRPTA Withholding for Foreign Sellers
When the seller is a foreign person or entity, the Foreign Investment in Real Property Tax Act requires the buyer to withhold 15% of the gross sale price and remit it to the IRS.12Office of the Law Revision Counsel. 26 U.S. Code 1445 – Withholding of Tax on Dispositions of United States Real Property Interests In practice, the title company handles the withholding from the closing proceeds, files IRS Forms 8288 and 8288-A, and submits the withheld amount within 20 days of the transaction.
Two exceptions matter for residential buyers. If the sale price is $300,000 or less and the buyer intends to use the property as a personal residence for at least half the time during each of the first two years, no withholding is required. For prices above $300,000 but at or below $1 million, the rate drops to 10% if the same residence requirement is met.13Internal Revenue Service. Exceptions From FIRPTA Withholding If the seller believes their actual tax will be less than the withholding, they can apply to the IRS for a withholding certificate on Form 8288-B. The most common way to avoid FIRPTA withholding entirely is a non-foreign affidavit: the seller certifies under penalty of perjury that they aren’t a foreign person. The title company, acting as a “qualified substitute” under the statute, can collect and hold that certification on the buyer’s behalf. In a state with heavy international investment, Florida title companies deal with FIRPTA routinely.
Who Is Licensed to Do This Work in Florida
Florida requires anyone acting as a title insurance agent to hold a license issued by the state Department of Financial Services. Applicants must complete a 40-hour title insurance course including 3 hours of ethics, or have at least 12 months of supervised experience in title insurance duties, and must pass a licensing exam. Florida attorneys admitted to the Bar are exempt from these licensing requirements and can conduct closings and issue title insurance without a separate title agent license.14Online Sunshine. Florida Statutes 626.8417 – Title Insurance Agent License Required Your closing in Florida may be run by a dedicated title company, an attorney’s office, or a hybrid of the two, depending on the transaction and the parties’ preferences.