Who picks the Florida title company: the buyer or the seller? One of the most misunderstood questions in a Florida real estate closing. Most buyers assume the choice has already been made for them. It hasn’t.
In Florida, no law decides which party chooses the title company. It depends on what you select in your purchase contract.
In Southwest Florida areas like Naples, Collier County, and Lee County, knowing this process can save you money and help you avoid issues that may appear after closing.
What the FAR/BAR Contract Actually Says
The standard Florida Realtors/Florida Bar residential purchase contract, known as the FAR/BAR contract, explains the title company choice in Paragraph 9(c) and offers three clear options:
| Contract Option | Who Chooses | Who Pays for Owner’s Policy | Common In |
|---|---|---|---|
| 9(c)(i) | Seller | Seller | Lee County, I-4 corridor, Panhandle, Northeast Florida |
| 9(c)(ii) | Buyer | Buyer | Collier County (Naples), Miami-Dade, Broward, Sarasota |
| 9(c)(iii) | Buyer | Buyer | Miami-Dade and Broward counties specifically |
The party who “designates the closing agent” in whichever option is selected is the one who chooses the title company.
Florida law does not prevent either party from working out a different arrangement. These options are meant to start the conversation, not set strict rules.
The Southwest Florida Custom: What Naples Buyers and Sellers Should Know
In Collier County, which includes Naples, the usual practice is for the buyer to choose the closing agent and pay for the owner’s title insurance policy, following Option 9(c)(ii).
This approach is similar to what you’ll find in Miami-Dade, Broward, and Sarasota, where buyers also make this decision.
In Lee County, the custom is the opposite. The seller usually pays for the owner’s title insurance policy and chooses the closing agent, following Option 9(c)(i).
Most transactions in Lee County use the FAR/BAR contract. In contrast, Collier County often uses the NABOR contract, which is approved by the Naples Area Board of Realtors and is quite different from the statewide standard in important ways at closing.
Why Title Insurance Premiums Are the Same Everywhere in Florida
Most buyers and sellers may not know this, but Florida title insurance premiums are set by state rules. Every licensed title company in Florida charges the same base premium for the same coverage amount, so you cannot find a lower rate by shopping around.
For example, if you buy a $400,000 home, the owner’s policy premium is $2,075 no matter which company you use. When choosing a title company, you are really comparing things like service quality, closing fees, communication, and how carefully they do the title search.
Florida’s rate schedule includes two discounts that many buyers do not know about:
Simultaneous Issue Rate
When both an owner’s policy and a lender’s policy are issued at closing, which is the case in almost every financed purchase, the lender’s policy costs a flat $25.
For a $400,000 purchase, this means you save more than $1,600 compared to paying full price for both policies.
Reissue Credit
If the seller’s existing owner’s policy was issued less than three years ago, a reissue rate applies, which is about 40% less than the standard premium. For a $400,000 home, this can lower the owner’s policy cost from $2,075 to around $1,230.
A careful title company will ask for the prior policy. If the company is less attentive, you might end up paying full price without realizing a discount was available.
The Question Nobody Asks: Title Company or Closing Attorney?
Most buyers and sellers in Florida do not think about a third option. This option gives you everything a title company provides, along with legal protection that title companies are not allowed to offer by law.
Goodwin Law, P.A. is licensed to handle title work directly. This includes the title search, title insurance, and closing documents.
At the same time, you get full attorney oversight of your contract and transaction. You work with one closing team for one flat fee, with no separate legal bill.
If you are buying or selling in Naples, Collier County, or Lee County, this is more important than many people think.
Closings in Southwest Florida often involve waterfront properties with complicated riparian rights, HOA disclosures with big financial impacts, properties owned by LLCs or trusts, and flood zone designations that affect insurance and value.
In these situations, a title company handles the paperwork, but an attorney can spot problems before they become your responsibility.
For more answers to common real estate closing questions in Southwest Florida, explore our real estate FAQ videos.
What You Should Actually Compare When Choosing
Since the insurance premium is fixed by the state, your evaluation should focus on:
- Closing fees and settlement charges: can vary, usually ranging from a few hundred dollars up to nearly $2,000. Be sure to ask for an itemized breakdown.
- Municipal lien search diligence: is important because unpaid water bills, open permits, and code violations are not recorded at the county level and will not show up in a standard title search. Ask if the company contacts municipalities directly.
- Reissue credit eligibility: Ask if they will request the seller’s prior policy.
- Attorney oversight: Decide if you prefer a neutral processor or a legal advocate for the same price.
How Goodwin Law Handles This in Naples and Southwest Florida
Who picks the Florida title company ultimately comes down to what’s negotiated in your contract, but who you choose to handle the closing determines how protected you are when it matters.
At Goodwin Law, P.A., we help buyers, sellers, and investors throughout Collier County and Lee County as both your title agent and attorney.
We take care of the title search, insurance, and closing documents, and provide full legal oversight of your transaction, all for the same flat fee as a title company.
Call us at (239) 207-3403 for a free 15-minute consultation, or find out more about our real estate transaction services.
