Are you buying a home or condo in Boca Raton and hearing about title insurance for the first time? You want your purchase to be smooth, with no legal surprises after closing. Understanding how title insurance works in Palm Beach County can help you protect your investment and plan your costs with confidence. In this guide, you’ll learn what title insurance covers, who typically pays for what, how condo purchases differ, and what to expect from contract to closing. Let’s dive in.
What title insurance covers
Title insurance protects you from losses caused by problems with a property’s ownership that existed before you closed. Think of issues like undisclosed liens, forged signatures, errors in public records, or a missing link in the chain of title. If a covered problem surfaces later, the policy helps defend your ownership and can cover certain financial losses.
In Florida, coverage typically includes recorded encumbrances and liens that were not cleared, defects in the chain of title, and undisclosed easements or restrictions that affect use or access. Lender coverage focuses on protecting the mortgage’s priority and enforceability. Owner coverage focuses on protecting your legal ownership up to the purchase price.
Owner vs. lender policies
You will hear about two policies at closing:
- Owner’s policy. Protects you, the buyer, up to the purchase price. It is a one-time premium paid at closing and remains in effect as long as you own the property.
- Lender’s policy. Protects your mortgage lender up to the loan amount. If you finance your purchase, your lender will require this policy. It is separate from the owner’s policy and is also paid once at closing.
What title insurance does not cover
Title insurance does not usually cover zoning or land use violations, environmental issues, or anything that happens after the policy date. It also may not cover unrecorded matters that a title search could not reveal, unless you add specific endorsements. Rights of parties in possession or boundary disputes often require a survey and may be excluded without additional coverage. Your policy will list exceptions and endorsements, so review them carefully with your title company and lender.
Boca Raton costs and who pays
Title insurance premiums in Florida are regulated and tied to the purchase price or loan amount. You pay these premiums once at closing. Other title-related fees include title search and commitment fees, settlement or escrow fees, endorsements, recording fees, documentary stamp taxes, intangible taxes on mortgages, payoff processing, and miscellaneous items like courier, wire, or notary fees.
Typical buyer-paid items
- Lender’s policy and lender-required endorsements
- Recording of the mortgage, when applicable
- Buyer-specific endorsements your lender or you request
- Funds you bring to closing and your portion of settlement fees as shown on the closing statement
Typical seller-paid items
- Owner’s policy, which is a customary practice in much of South Florida
- Documentary stamp tax on the deed in many transactions
- Costs needed to clear seller-related title issues, such as paying off existing mortgages or liens
Customs can vary by county, by property type, and by contract. In a competitive market, who pays for certain title costs can be negotiated. Always confirm allocations in your purchase contract and ask your title company for a current fee quote.
Premium pricing explained
Because Florida regulates premium rates, title companies use the same state-backed rate tables to calculate the one-time cost based on your purchase price and loan amount. Exact premiums and any endorsements depend on your deal specifics. For the most accurate numbers, request a written quote from your title company before you finalize your budgets.
Taxes and recording fees
In Palm Beach County, recording fees and state documentary taxes apply to deeds and mortgages. These appear as separate line items on your settlement statement, apart from title premiums. Your title company will prepare these figures and confirm who pays each item under your contract.
Condos vs. single-family homes
Buying a condominium in Boca Raton adds a few steps that affect title review and timelines. Single-family homes come with their own considerations, often related to surveys and access.
Condo documents and estoppels
For condos, the title company and lender will review the association’s declaration, bylaws, and amendments. They will also order an estoppel letter to confirm any amounts owed by the seller, along with current assessments and association standing. The review should identify any approved or pending special assessments that could create liens or ongoing obligations. Lenders commonly require condominium endorsements that address condo-specific risks and lien priority.
Single-family surveys and access
For single-family homes, lenders often require a survey. The title company uses it to clear or limit exceptions tied to boundary lines, encroachments, or access. You may see recorded easements for utilities or ingress and egress. Unpermitted work or open permits can surface as title exceptions or post-closing concerns. Some endorsements may narrow risks, but most policies do not insure against zoning or code issues themselves.
Timeline tips for condos
Condo closings may take a bit longer, depending on how quickly the association delivers documents and estoppels. Plan for extra time if you are relocating or need to coordinate travel for closing. Ask your title company and agent to confirm expected delivery dates so you can keep your loan and move-in timeline on track.
Closing process in Palm Beach County
From contract to commitment
After your contract is signed, your agent sends it to the title company and your lender. The title company performs the search and issues a title commitment, which lists what must be cleared and what exceptions will remain. At the same time, your lender orders the appraisal and sends title requirements, including any endorsements or a survey.
Clearing title issues
The title company requests payoff statements for the seller’s mortgage and other liens, municipal lien searches, and tax certificates. For condos, the association estoppel is ordered. If the search finds an unreleased mortgage or another defect, the seller is commonly asked to resolve it before closing. Sometimes the title company will use corrective documents, hold funds in escrow, or recommend endorsements to address specific risks.
Closing day and after
You will review a settlement statement or Closing Disclosure showing all fees, taxes, and who pays each item. On closing day, the parties sign, funds are disbursed, and documents are recorded with the county. Title policies are issued after recording and may be delivered shortly after closing. Many title companies support electronic recording, and remote notarization has become more common, depending on the company’s capabilities and county procedures. Ask early if you need a remote option.
Common title problems and solutions
In Palm Beach County, title searches can uncover unreleased mortgages, tax or judgment liens, unpaid HOA or condo assessments, missing deeds, or chain-of-title gaps. Boundary questions and encroachments may also surface, especially when a new survey is ordered.
Title companies typically resolve these issues by obtaining payoff or release documents, requesting corrective deeds or affidavits, and clearing exceptions before closing. When needed, funds may be escrowed until a release records. Certain risks can be managed with endorsements, while others must be cured by the seller for the transaction to move forward.
Buyer checklist: be ready to close
- Get pre-approval and ask your lender about title requirements and endorsements.
- Confirm the title company in your contract and get a written fee quote.
- Review the title commitment right away and ask the title officer to explain exceptions.
- For condos, request association documents and the estoppel; review rules and any special assessments.
- Verify how title and closing costs are allocated in your contract so you know what to budget.
- Confirm how you will transfer funds. Call the title company using a verified phone number before wiring money. Be alert to wire-fraud attempts.
- Bring a valid government ID and any lender-required documents. Ask about e-signing and remote options if you are relocating.
- Consider an owner’s policy even when the seller pays for it. The coverage protects your ownership, regardless of who pays the premium.
How your agent helps
A hands-on agent simplifies title and closing steps so you can focus on your move. Your agent can recommend reputable local title companies, send the fully executed contract to the title team and lender, and monitor the title commitment to flag major exceptions. For condos, your agent helps coordinate association documents and estoppels.
Your agent also tracks lender and title requirements, helps schedule the closing, and reviews the settlement statement with you. Expect clear timelines, reminders about wire safety, and follow-up after closing to confirm recording and policy delivery. This coordinated approach helps prevent last-minute surprises and keeps your transaction on schedule.
Move forward with confidence
Title insurance is about peace of mind. It protects your ownership from past problems and helps ensure your Boca Raton closing is clean, compliant, and on time. If you want a local, concierge approach from contract to keys, connect with Karina Kulikova for guidance tailored to your purchase.
FAQs
Do Boca Raton buyers need an owner’s title policy?
- Yes. An owner’s policy protects your legal ownership up to the purchase price and remains in effect as long as you own the property, regardless of who pays the premium.
Who usually pays for title insurance in Palm Beach County?
- It is common in South Florida for the seller to pay the owner’s policy and the buyer to pay the lender’s policy, but this is a custom. Your contract controls the final allocation.
Can title issues delay closing in Boca Raton?
- Yes. Unresolved liens, chain-of-title gaps, or incorrect legal descriptions can delay or halt closing until they are cleared, escrowed, or otherwise resolved by the title company and parties.
How do condo purchases affect title timelines?
- Condo transactions can take longer due to estoppel letters and association document reviews. Build in extra time and ask your title company and agent for expected delivery dates.
Will title insurance cover future HOA or condo assessments?
- No. Title policies do not insure against assessments that arise after the policy date. Known or recorded assessments at closing are handled through the commitment and settlement process.
Who chooses the title company for a Boca Raton purchase?
- Your purchase contract usually names the title company or allows the parties to agree. You can request a local provider, and your agent can recommend reputable options.
