What Florida Realtors Should Look for in a Title Company

I was a Realtor before I opened a title company. I started American Title Trust because I kept watching good deals get stressful for reasons that had nothing to do with the buyer, the seller or the house. A commitment that came back late. A lien nobody mentioned until the week of closing. A closer who didn't return calls. My clients didn't blame the title company. They remembered the closing, and they remembered me.

If you are deciding which title company to put in your contracts or recommend to your sellers, here is what I would look for, from both sides of the table.

Why your choice matters more than most agents think

In most Florida counties, the seller customarily pays for the owner's title policy, and under the standard Florida Realtors/Florida Bar contract the party paying for that policy designates the closing agent. That means listing agents have real influence over who closes the deal. In Miami-Dade, Broward, Sarasota and Collier, where the buyer customarily pays, buyer's agents often have that influence instead.

Title insurance premiums in Florida are promulgated by the state, so the premium is the same everywhere. Agents are not really choosing on price. You are choosing on service, speed and how much of your time the title company saves or costs you.

1. How fast they deliver the title commitment

The commitment is where problems show up: open mortgages, judgments, probate gaps, missing spouse signatures on homestead property. The earlier you see it, the more options you have.

Ask a title company how long its searches usually take. At American Title Trust, most come back in 24 to 48 hours. On a 30-day financed contract, a commitment on day two versus day ten is the difference between calmly curing a defect and asking for an extension.

Also ask whether they order the municipal lien search early. Open permits and code enforcement liens usually don't appear in the official records search, and they are one of the most common late surprises in Central Florida.

2. How they communicate, and how often

You should not have to chase your title company for status. A good one tells you at each milestone:

• File opened and escrow deposit received

• Commitment issued, with any problems flagged in plain language

• HOA or condo estoppel received

• Payoffs received

• Clear to close and closing scheduled

• Funded, recorded and disbursed

Ask who your point of contact will be, whether they copy both agents, and how quickly they respond to calls and emails. Ask what happens after 5 p.m. When a lender changes the Closing Disclosure the night before closing, you need someone who answers.

3. Whether they can close anywhere

Florida transactions increasingly involve people who are not in Florida: snowbird sellers, heirs living up north, relocating buyers, investors abroad. Your title company should offer:

• Mobile notary signings for local clients who can't come in

• Mail-away closings with clear instructions for out-of-state signers

• Remote online notarization (RON). Florida's RON law took effect January 1, 2020, and lets registered Florida online notaries notarize for signers anywhere, as long as the lender and documents allow it

If a title company can only close at its own conference table, your out-of-town seller becomes your problem. More on this in our post A Realtor's Guide to Leveraging Technology for Remote Real Estate Closings.

4. Whether they can serve your clients in their language

Florida's buyers and sellers speak many languages, and in Central and South Florida Spanish is often the one that matters most at the closing table. A bilingual closer does more than translate. They catch the moment a buyer looks confused about escrow or a seller misunderstands the proration, and they explain it before it becomes a problem.

Hablamos español at American Title Trust, and our agents tell us it saves them hours of explaining documents after hours.

5. Experience with the files that go sideways

Any title company can close a clean cash deal. Ask about the harder ones:

• Probate and estate sales. Do they know what the underwriter will require from the personal representative?

• Short sales. Can they work with the short sale lender on payoff and approval?

• Foreign sellers. Do they understand FIRPTA withholding and the 20-day filing deadline? See our FIRPTA guide.

• 1031 exchanges. Will they coordinate properly with the client's qualified intermediary so the proceeds never touch the seller's hands? See our 1031 exchange overview.

• Assignments and double closings for investor clients.

6. Tools that help you win listings

Ask whether the title company will prepare seller net sheets and buyer estimates on request, and whether it has an online quote calculator. A net sheet in your listing presentation shows sellers you know their numbers. We wrote about why a net sheet belongs in every listing presentation.

7. Wire fraud practices

Ask how they protect buyers and sellers from wire fraud. The right answer includes: wiring instructions are never changed by email, clients are told to verify by phone using a known number, and staff are trained to spot spoofed addresses. One fraudulent wire can wipe out a buyer's down payment and haunt everyone involved.

Questions to ask before you send your next contract

• What is your average turnaround on title commitments?

• Who is my contact, and how do you update agents?

• Do you offer after-hours, mobile and remote closings?

• Do you have Spanish-speaking (or other language) closers?

• How do you handle probate, FIRPTA and short sales?

• Will you prepare seller net sheets for my listing appointments?

• What is your wire fraud policy?

Why agents work with American Title Trust

We are a woman-owned title company headquartered in Orlando, closing throughout Florida. We built our process around the things that frustrated me as an agent: slow commitments, silence, and closings that only worked if everyone was in the same room. If that sounds like what you want for your clients, read our Florida closing timeline for agents or send your next contract to Order@amtitletrust.com.

Call 888-848-5320 or open an order at amtitletrust.com. Hablamos español.

FAQ

Can a Realtor choose the title company in Florida?

The contract decides. Under the standard Florida contract, the party paying for the owner's title policy designates the closing agent. Agents often recommend a title company to their client, who then makes the choice. Agents should follow their brokerage's rules on settlement service referrals.

Are title insurance rates different between Florida title companies?

No. Florida promulgates title insurance premiums, so the premium is the same everywhere. Closing and search fees, and the level of service, are what differ.

What is the most common cause of late closing delays in Florida?

In our experience, title issues found late: unreleased mortgages, judgments, open permits, probate issues and estoppel delays. Ordering the search and estoppel early prevents most of them.

This article is for general information only and is not legal, tax, or financial advice. Laws and rates change, and every transaction is different. Please consult a Florida-licensed attorney, CPA, or other qualified professional about your situation. American Title Trust, LLC is a Florida-licensed title insurance agency (License W373227), not a law firm. Title insurance is underwritten by WFG National Title Insurance Company. Florida title insurance premiums are set by the State of Florida. Information current as of the date published above.