Who Chooses and Pays for the Title Company?

In Florida, the party that pays for Title Insurance varies per county and can be negotiated in the contract. However, the party that pays for the title insurance generally chooses the title/closing company. In the areas I service, this is usually the custom; Lee County – Seller Chooses and Pays, Collier County – Buyer Chooses and Pays, Charlotte and Sarasota Counties – mixed Buyer/Seller Choose and Pays. This is a negotiated term on the purchase contract. One thing to note, however, Federal law addresses issues of title insurance in Section 9 of the Real Estate Settlement Procedures Act (“RESPA”). This law prohibits a Seller from requiring a Buyer to purchase title insurance from any particular title company. This only applies if the Buyer is paying for title insurance. If the Seller in the contract agrees to pay for the title insurance (owner and lender’s policy), RESPA would not apply.