Although mostly recognized as just another “charge” at closing, title insurance is the most important investment you can make on your most valued asset – your home. Title insurance insures the buyer (and mortgage lender) that the property that is being bought has “good title.”
It protects title problems that often are discovered months or years after closing. These title problems include: undiscovered liens or judgments from the prior owners, forged deeds, falsification of records, fraud, etc. In Florida, the seller typically pays for title insurance. (Check your contract.)
Whichever party is responsible for paying for title insurance on the property has the freedom to pick their title company. You do not have to use your realtor’s or bank’s title company.