Guide · November 9, 2026
Title insurance when you sell a house: who pays and how the price is set
Title insurance protects the buyer against old claims on your house. The seller still has a part to play: the contract may put the premium on you, and every problem the title search finds has to be cleared before closing.
Key points
- An owner's title policy protects the owner if someone claims a right to the house from before the purchase, such as an unpaid contractor or unpaid taxes (Consumer Financial Protection Bureau).
- A lender's policy protects only the amount a lender lent. A cash buyer has no lender, so a cash sale usually needs only the owner's policy.
- In Florida a state rule sets the premium (Florida Statutes, section 627.782). In Arizona each insurer files its own fee schedule with the state (Arizona Revised Statutes, section 20-376).
- The contract decides who pays for the policy. Read its closing costs paragraph before you sign.
- The seller clears the problems the title search finds: old loans, liens, judgments, missing signatures and names that do not match.
What title insurance covers
Title is your legal right to own the house. Title insurance protects a buyer against a claim on the house that started before the purchase. The Consumer Financial Protection Bureau gives two examples: unpaid taxes, and a contractor who was never paid for work done before the sale.
There are two kinds of policy. An owner's policy protects the buyer who now owns the house. A lender's policy protects only the amount a lender lent, says the Bureau. In a sale with a mortgage the buyer's lender asks for a lender's policy. A cash buyer has no lender, so a cash sale usually involves only the owner's policy.
The seller has two reasons to care about the buyer's policy. The contract may make you pay the premium. And the title company issues the policy only after the problems its search finds are cleared. Clearing one can need something only the seller has: a signature, a loan number or a court paper.
How the premium is set in Florida
Florida sets title insurance premiums by rule. Section 627.782 of the Florida Statutes tells the state to adopt a rule that specifies the premium title insurers charge in Florida. The premium for a given policy and amount therefore comes from that rule, whichever title company you use.
The title company still has charges of its own on top of the premium. A settlement fee, a search fee, a courier fee and a wire fee are separate lines on the closing statement. These are the lines to compare when you choose a title company in Florida.
Who pays for the owner's policy in Florida depends on the contract. BIMINIO's own closing notes record that the seller usually pays it in Hillsborough County and that the buyer usually pays it in Miami-Dade County. Treat that as a note on local habit and follow your contract.
See every seller closing cost in Florida →
How the premium is set in Arizona
Arizona lets each title insurer set its own fees, under state review. Section 20-376 of the Arizona Revised Statutes requires every title insurer to file its schedules of fees, its rating manuals and any change to them with the state's director of insurance. A filing must be on file for at least 30 days before it takes effect, and the director may extend that by up to 15 more days.
Because each insurer files its own schedule, the premium for the same policy can differ from one company to the next. So in Arizona, compare both the premium and the escrow company's own fees. Ask each company for a written quote that lists every charge.
Who pays for the owner's policy in Arizona depends on the contract, in the same way as in Florida.
See every seller closing cost in Arizona →
The title search and the title commitment
Before it insures anything, the title company searches the public records for the house. It looks for every recorded loan, lien, judgment and deed, and checks that the people selling are the people on the title.
The result is a title commitment: a promise to issue a policy once a list of requirements is met. That list is the part to read. Each item is something that must happen before or at closing, for example paying off a named mortgage, recording a release, or getting a signature from a co-owner.
Ask the title company for a copy of the commitment as soon as it is ready, and ask which items need something from you. The earlier you start on them, the less likely your closing date moves.
Title problems a seller must clear
The table lists title problems a seller may face in Florida and Arizona, what clears each one, and the law that applies where there is one.
| Problem found | What clears it | Law |
|---|---|---|
| A mortgage that is still open | Payoff at closing, then a recorded release | Florida section 701.04; Arizona section 33-707 |
| An old loan paid years ago, never released | The old lender records a release. In Arizona a title insurer may record one after 60 days | Florida section 701.04; Arizona sections 33-707 and 33-712 |
| A contractor's lien | Payment and a release, or the lien runs out | Florida sections 713.08 and 713.22; Arizona section 33-993 |
| A court judgment against an owner | Payment from the price and a recorded satisfaction | Florida section 55.10; Arizona section 33-964 |
| A federal tax lien | Payment, or a certificate of discharge from the IRS | IRS Publication 783 |
| An owner who has died | Probate papers or other court papers | The county court |
| A co-owner who will not sign | That owner's signature, or a court order | The county court |
Read the guide: your mortgage payoff and liens →
Releases that were never recorded
A loan you paid off years ago can still show as open in the county records if the lender never recorded a release.
Florida gives the lender 60 days after a loan is paid in full to record or send the satisfaction of the mortgage (section 701.04). A person who wins a court case to enforce this is entitled to reasonable attorney fees.
Arizona makes a lender liable for the owner's actual damages if it has not recorded a release within 30 days after full payment. If the lender still has not done so more than 30 days after a written request sent by certified mail, it owes $1,000 more (section 33-712). Arizona also lets a title insurer prepare and record the release itself if none is recorded within 60 days (section 33-707).
Papers the title company may ask you to sign
To issue the policy, the title company may ask you to sign statements about the house. They usually cover who lives there, whether any work was done recently that has not been paid for, and whether you know of any claims. Read each one. If a statement is not true for your house, tell the title company before you sign, because a false statement can cost you money later.
In Arizona you also sign the affidavit of legal value that goes with the deed (section 11-1133).
Read the guide: what happens at closing →
How long title work takes
A clear title with one mortgage moves fastest. Each extra item on the commitment adds a step that depends on someone else: a lender's payoff letter, a release from an old lender, a court paper for an owner who has died, or a discharge from the IRS. The IRS asks for an application for a certificate of discharge at least 45 days before the sale (Publication 783).
With BIMINIO you pick the closing date, from 7 to 35 days after you accept. Tell us on the first call about any loan, lien, judgment, death or divorce that touches the house, so the title company can start on it the same week.
Questions to ask a title company before you choose it
Whoever pays the premium, the seller works with the title company for the whole sale. These questions help you compare companies and avoid surprises on the closing statement.
- What is the premium for the owner's policy at my price, and where does that figure come from?
- Which other charges will appear on the statement, and who pays each one under my contract?
- When will the title commitment be ready, and which of its items need something from me?
- Will you order the payoff statements and HOA papers, and what do you need from me to do it?
- How will you send my money after closing, and how will you confirm the wire details with me?
- Can the papers be signed where I live, and does every owner on the title need to be there?
Title insurance in a sale to BIMINIO
In a sale to BIMINIO we pay the closing costs, and the closing statement shows them as paid by BIMINIO. A licensed title company handles the paperwork and holds your earnest deposit. Your mortgage, liens and any back taxes are paid from the price, because they are debts on the house.
A BIMINIO cash offer is below full market value. Compare what you keep after every cost, including title, before you choose how to sell.
Want a number for your house? BIMINIO buys in Florida and Arizona, as is, and pays the closing costs. A written offer comes within 24 hours.