Buying a home in Tequesta is exciting, but the stack of closing documents can feel overwhelming. Title insurance is one of those items that raises questions for many buyers. You want to protect your investment, keep costs in check, and move to closing without surprises. In this guide, you’ll learn what title insurance covers, how Florida’s pricing works, what affects your premium, and simple steps to keep your Tequesta closing on track. Let’s dive in.
What title insurance covers
Title insurance protects you from covered problems with a property’s ownership history that existed before you bought it. These can include issues you would not find on a simple walk-through or inspection.
Common examples include:
- Undisclosed liens or unpaid judgments
- Forged signatures or recording errors
- Missing heirs or improper probate
- Ambiguous or undisclosed easements
You pay a one-time premium at closing. An owner’s policy lasts as long as you have an ownership interest. A lender’s policy lasts while the mortgage exists. Title policies have exclusions, such as zoning or building code violations, environmental issues, or matters created after the policy date unless a specific endorsement adds coverage.
Owner’s vs lender’s policies
Owner’s policy
An owner’s title insurance policy protects your equity and right to possess the property if a covered title defect is discovered after closing. It is optional in Florida but strongly recommended because a lender’s policy does not protect you.
Lender’s policy
Most lenders require a lender’s (mortgagee) policy. It protects the lender’s security interest up to the loan amount. Coverage typically decreases as you pay the loan down.
Do you need both?
Yes, in most financed purchases you will see both. The lender’s policy protects the bank. The owner’s policy protects you. Buying both gives the best long-term protection for your Tequesta home.
Florida’s promulgated rates
Florida uses a promulgated rate structure for title insurance. That means the base premium is set by state regulation and applied uniformly across licensed title insurers. You will see similar owner’s and lender’s premiums from different title companies for the same purchase price and loan amount.
You can still influence your total closing costs. Credits, endorsements, and certain fees can change your final number, and you can choose your closing team based on service and responsiveness rather than just price.
What affects your final cost
- Policy amounts: The owner’s policy is based on the purchase price. The lender’s policy is based on the loan amount.
- Endorsements: Optional endorsements add specific protections your situation may need and add small fees.
- Settlement and recording: Title/settlement fees, recording fees, and required state taxes are separate from the premium.
- Contract terms: In some deals, buyers and sellers negotiate who pays certain title-related costs.
Reissue credits: How to save if eligible
A reissue credit may reduce your owner’s policy premium if a valid prior title policy exists on the property. The title company will review the prior policy’s date, insured amount, and coverage to determine eligibility and the amount of the credit.
Smart steps:
- Ask the seller for a copy of any existing title policy as soon as you go under contract.
- Send it to your title company for review.
- Confirm whether the credit applies to the owner’s policy, the lender’s policy, or both. Most often it affects the owner’s policy.
Because rules and availability change, rely on your title agent and underwriter to confirm today’s eligibility and credit amount.
Common Florida endorsements
Endorsements can fill gaps that base policies do not cover. Your needs depend on the property type, survey, lender requirements, and how you plan to use the home.
Often-requested endorsements include:
- Survey/Boundary: Addresses certain encroachments or boundary disputes when a survey is provided.
- Access: Insures vehicular and pedestrian access to a publicly maintained road.
- Zoning/Use: Provides limited protection related to permitted uses.
- Condo/PUD: Adds coverage for association-related matters in condos and planned communities.
- Homestead or survivorship-related items: Addresses Florida-specific homestead and spousal rights.
- Lender-required ALTA endorsements: Supports special loan features or subordinate financing.
If you are purchasing a condo or in an HOA community, expect the title team to review association documents and request estoppel letters. These can take days or longer, so start early.
Tequesta timeline and tips
Timing matters. Early ordering helps avoid last-minute issues.
Typical milestones for a straightforward Palm Beach County purchase:
- Title search and preliminary commitment: About 3 to 10 business days, depending on complexity.
- Clearing exceptions: Ranges from days to weeks, based on items like mortgage payoffs, judgments, or recorded documents.
- Final policies: Issued at or just after closing once funds are disbursed and documents recorded.
Local logistics to factor in:
- Palm Beach County record searches can take longer for coastal or older properties with complex history.
- HOA or condo estoppels and document packages may take several days to a couple of weeks.
- Flood zone determinations and any required elevation certificates should be ordered early, especially if your lender needs flood insurance.
Security tip: Always verify wiring instructions with your closing agent by calling a known, trusted number. Do not rely only on email. Wire fraud is a real risk.
Example: Title costs in a Tequesta closing
Here is a simple illustration to show how title insurance fits into your closing, using a hypothetical scenario.
Scenario: You buy a single-family home in Tequesta for $600,000 with a $480,000 loan.
Typical title-related items you might see:
- Owner’s title insurance premium: One-time premium based on the $600,000 purchase price using Florida’s promulgated schedule. A reissue credit, if available, could reduce this amount.
- Lender’s title insurance premium: One-time premium based on the $480,000 loan amount per the promulgated schedule.
- Endorsements: Survey, access, condo/PUD, and lender-required endorsements, each with small additional fees.
- Settlement/closing fee: Title or escrow fee, potentially negotiable or split by contract.
- Recording and taxes: County recording fees for the deed and mortgage, plus applicable state documentary stamp and intangible taxes.
- Third-party items: Payoff fees, HOA estoppel, flood certificate, survey cost if needed, and any wire or courier fees.
Takeaway: Title insurance is a meaningful line item at closing. The owner’s policy is one-time and lasts as long as you own your home. Reissue credits can provide real savings. Ask for a preliminary title estimate early in escrow so you know your numbers.
Avoid surprises in Palm Beach County
Florida has a few title issues that deserve extra attention during due diligence:
- Homestead and spousal signatures: Florida homestead rules may require spousal signatures or waivers. Your title company will verify this.
- Probate and heirs: Older properties sometimes have unresolved heir claims that need to be cleared.
- Easements and access: Older or coastal properties may have recorded easements that require clarification.
- Surveys: Without a current survey and related endorsement, survey-related issues are often excluded from coverage.
Review your title commitment carefully. Ask questions about any exceptions, and confirm which items can be removed with additional documentation, payoffs, or endorsements.
Next steps for Tequesta buyers
Use this quick checklist to stay proactive and reduce risk:
- Choose a reputable local title company or attorney with Palm Beach County experience.
- Request a copy of any existing title policy from the seller for potential reissue credit.
- Order title immediately after contract execution to start the search and commitment.
- Decide whether you need a new survey, and schedule it early.
- Discuss endorsements with your title agent and lender based on property type and use.
- Review the title commitment and ask for clarifications on any exceptions.
- Confirm recording fees and taxes with your settlement agent.
- Verify wire instructions by phone before sending funds.
If you want a calm, well-coordinated closing backed by lending fluency and deep local experience in Tequesta, reach out. Janet Cordero will help you understand your title options, line up the right endorsements, and keep your timeline moving.
FAQs
Do Tequesta buyers need an owner’s policy if the lender requires one?
- Yes. The lender’s policy protects the bank’s interest, while an owner’s policy protects your equity and right to the property going forward.
When should I order title insurance for a Palm Beach County home?
- Order it as soon as the contract is executed. Early ordering speeds the search and gives time to clear any issues before closing.
Will title insurance cover zoning or inspection problems in Florida?
- Generally no. Zoning, building code issues, and physical condition problems are excluded unless a specific endorsement adds limited coverage.
Can I shop for a lower title premium in Florida?
- The base premium is set by Florida’s promulgated rates, so prices are similar. Shop for service quality, responsiveness, and local expertise instead.
What causes the most common title delays in Tequesta?
- Unreleased liens, missing spousal signatures or homestead issues, slow HOA or condo estoppels, unresolved probate, or new survey discoveries are common causes of delay.
