Title insurance can feel like one more mystery line item on your Coral Gables closing statement. You want to protect your investment, avoid surprises, and keep your closing on track. The good news is that a bit of clarity goes a long way. In this guide, you will learn what title insurance covers, the difference between an owner’s and a lender’s policy, local customs in Miami‑Dade, and exactly what to review before you sign. Let’s dive in.
What title insurance covers in Coral Gables
Title insurance helps protect you from past issues that could cloud your ownership rights. Common covered risks include forged documents, recording errors, undisclosed heirs, or liens that were not properly released. Policies are based on a title search and you pay a one‑time premium at closing.
In Coral Gables, title searches often uncover recorded mortgages, judgments, tax liens, contractor or mechanic’s liens, HOA or condo association liens and estoppels, municipal code enforcement liens, and recorded easements or restrictive covenants. Older neighborhoods and historic districts can have complex records, and condominiums bring association obligations that must be cleared before closing.
Keep in mind that some risks are outside standard title coverage. Flood zone status and historic preservation restrictions affect how you can use or renovate a property, but they are not title defects. You should review FEMA flood maps and city historic guidelines separately.
Owner’s vs. lender’s policies
Lender’s policy
A lender’s title policy protects the lender up to the outstanding loan amount. It stays in force until you pay off or refinance the loan and does not protect you as the owner. If you finance your purchase, the lender will almost always require this policy. In our area, buyers commonly pay for the lender’s policy, but check your contract.
Owner’s policy
An owner’s title policy protects you, the homeowner, for covered losses and legal defense up to the insured amount, often the purchase price. Coverage lasts as long as you own the property, and can extend to your heirs. Many title problems are expensive to fix, so this policy is designed to shift that risk away from you. In Miami‑Dade, it is common for sellers to pay for the owner’s policy, but that is a negotiated term and not a rule.
What it costs in Florida
Title insurance premiums in Florida are regulated and paid once at closing. Exact figures depend on the purchase price and any endorsements you choose. For context on how rates are filed and regulated, see the Florida Office of Insurance Regulation’s page on title insurance. You can review how Florida regulates title premiums on the Florida Office of Insurance Regulation’s page for title insurance programs and filings.
Endorsements are optional add‑ons that provide targeted protections, such as survey or condo coverage. Each endorsement carries a separate one‑time fee. Your title company can explain which endorsements fit your property type and risk tolerance.
Local closing customs in Coral Gables
- Who pays for what. In South Florida, sellers often pay for the owner’s policy and buyers pay for the lender’s policy. This is a custom, not a law. The contract controls, so confirm what your agreement says.
- Closing and escrow handling. Most closings are handled by title or escrow companies. Attorneys are not required for Florida residential closings. Confirm where your earnest money is held, get a receipt, and request a written escrow agreement.
- Condo and HOA estoppels. For condos and HOAs, the closing agent will request association estoppel letters that show unpaid assessments, pending special assessments, or other obligations. Florida law governs association liens and procedures. You can read more in the Florida Statutes for Condominiums, Chapter 718 and Homeowners’ Associations, Chapter 720.
- Historic properties and municipal matters. Coral Gables has historic districts and a Historic Preservation Board. Designated properties may face restrictions on exterior changes. You can review the city’s Historic Resources and Preservation guidance and Code Enforcement procedures to understand approvals and potential liens.
- Flood risk and insurance. Lenders typically require flood insurance for homes in FEMA Special Flood Hazard Areas. Flood risk is not covered by title insurance. You can check your flood zone using the FEMA Flood Map Service Center.
- County records. For recorded liens, deeds, and releases, review the Miami‑Dade Clerk of the Court Official Records and confirm tax status through the Miami‑Dade Property Appraiser.
What to review before you close
The title company will issue a title commitment before the policy. Review these sections carefully and ask questions.
- Schedule A. Confirm the legal description, your name, the seller’s name, and the insured amounts match your contract and survey.
- Schedule B‑I (Requirements). This lists what must be cleared or provided before the policy can be issued, such as paying off an existing mortgage, releasing a lien, or providing a signed deed.
- Schedule B‑II (Exceptions). This lists items your policy will not cover unless removed or endorsed. These exceptions are critical to understand.
Common Coral Gables exceptions to watch:
- Taxes and assessments that are not yet due or unpaid.
- Easements and rights of way that limit building or access.
- Covenants, conditions and restrictions for neighborhoods or associations.
- Survey matters described as items that an accurate survey would disclose.
- Mechanics’ liens, contractor claims, judgments, or tax liens.
- Association liens or pending special assessments for condos or HOAs.
- Municipal code enforcement liens.
Documents and items to request or verify:
- The latest title commitment and any updates before closing.
- A current survey or ALTA survey if boundary, encroachment, or setback issues might exist, and ask if a survey endorsement will be issued.
- HOA or condo estoppel certificates and association documents, including budgets and any pending litigation notices.
- Proof of payoff or releases for any prior mortgages or liens.
- Flood zone determination and flood insurance requirements.
- Property tax payment status and any applicable tax exemptions.
- City code enforcement records and building permit history.
Endorsements to consider
Endorsements can reduce or remove standard exceptions when specific conditions are met. Ask your title company which of these fit your property and plans.
- Survey or boundary endorsements that address encroachments or setback issues shown on an acceptable survey.
- Mechanic’s lien endorsements that help protect against post‑closing contractor claims.
- Zoning or use endorsements that provide limited assurances about current zoning.
- Condo or PUD endorsements that address common interest community issues.
Red flags in Coral Gables
- Recent renovations with unpaid contractors or suppliers that could result in mechanic’s liens.
- Missing or unclear legal descriptions, especially with older or subdivided parcels.
- Unreleased mortgages or tax liens that still show of record.
- HOA or condo special assessments or association litigation that can affect costs and lien priority.
- Easements that interfere with your planned additions or site work.
- Municipal code violations, fines, or unsafe structure orders that must be resolved.
- Historic status that requires approvals for exterior changes.
Buyer checklist and questions for your title company
Use these prompts to keep your closing focused and clean.
- Will I receive an owner’s title policy? If not, can we ask the seller to purchase it per local custom?
- Who is paying for the owner’s policy and the lender’s policy according to our contract? Does the settlement statement reflect this?
- Can I receive the title commitment early and a walkthrough of Schedules A, B‑I, and B‑II? Which exceptions can be removed or endorsed?
- Is there an acceptable survey on file? If yes, will a survey endorsement be issued? If not, should I order one?
- For a condo or HOA home, has the association estoppel been obtained, and does it show any unpaid or special assessments?
- Can you provide a written breakdown of all title and closing costs, including endorsements and recording fees?
- Are there any liens or judgments that will remain on title after closing? What is being done to clear them?
- Where is my earnest money held, and can I have written wiring instructions? How do you verify wire instructions for fraud protection?
- Do you provide support if a title issue surfaces after closing?
Timing and next steps
Title searches and commitments are typically completed between contract and closing and can take a few days to a few weeks depending on complexity. If new documents are recorded before closing, expect an updated or supplemental commitment. While local custom often has the seller covering the owner’s policy in Miami‑Dade, negotiate what you prefer early and ensure the contract reflects it. You can request quotes from multiple licensed title companies, but remember Florida premiums are regulated. Differences usually show up in endorsements, service, and responsiveness. For complex matters like chain of title clouds, easements, or condo litigation, ask the title company’s underwriter counsel for clarity or consult a Florida real estate attorney.
Guidance when you need it most
You deserve a smooth closing and clear answers. Our team helps you review the title commitment, coordinate estoppels and surveys, and confirm who pays for which policy so there are no surprises on closing day. We work closely with your title and escrow professionals to keep timelines tight and documentation precise, while you focus on move‑in plans.
If you are buying or selling in Coral Gables, let’s start a focused plan that protects your interests and elevates your outcome. Connect with Brittani Brookins for a personalized consultation.
FAQs
Do I need an owner’s title policy if my lender requires one?
- Yes. The lender’s policy protects only the lender up to the loan amount. An owner’s policy protects you for covered defects while you own the property.
Who usually pays for title insurance in Miami‑Dade County?
- Local custom often has the seller pay for the owner’s policy and the buyer pay for the lender’s policy, but this is negotiable and controlled by your contract.
What is a title commitment and why does it matter?
- It is the title company’s promise to issue your policy once requirements are met, and it lists exceptions that will not be covered unless removed or endorsed.
How do HOAs and condos affect title in Coral Gables?
- Associations can place liens for unpaid assessments, and estoppel letters disclose balances and special assessments that must be addressed before closing.
Does title insurance cover flood zones or historic restrictions?
- No. Flood risk and historic preservation rules affect use and insurance but are not covered by title insurance; review FEMA maps and city guidelines separately.
How long does the title search take in Coral Gables?
- It typically takes from a few days to a few weeks depending on property complexity and any issues that must be cleared before policy issuance.
