Is the seller required by law to pay for title insurance in Florida?

No. Florida law does not require either party to pay for title insurance. Who pays is determined by local custom and what the buyer and seller negotiate in the purchase contract. The customs described here are defaults, not legal requirements.

Can the buyer and seller split the cost of title insurance?

Yes. The purchase contract can specify any arrangement the parties agree to, including a 50/50 split, the buyer paying the full amount, or the seller paying everything. The contract controls, regardless of local custom.

What is the difference between an owner's policy and a lender's policy?

An owner's policy protects the buyer's equity in the property for as long as they own it. A lender's policy protects the mortgage lender's interest in the property. If the buyer has a mortgage, the lender will require a lender's policy, and the buyer almost always pays for it.

Who chooses the title company in a Florida real estate transaction?

In most Florida counties, the party who pays for title insurance gets to choose the title company. In seller-pay counties like Hillsborough, the seller typically selects the title agent. In buyer-pay counties like Sarasota, the buyer usually makes the choice.

Do these customs apply to new construction homes?

New construction contracts often have their own terms dictated by the builder. Many builders specify their preferred title company and may allocate costs differently than the local residential custom. Always read the builder's contract carefully.

Who Pays Title Insurance in Tampa Bay? | Coastal Collective Title

In most of the Tampa Bay area, the sellerpays for the owner's title insurance policy. But that is not a statewide rule. Florida has no law dictating who pays; instead, each county follows a local custom that has developed over decades of transactions. When you cross a county line, the custom can flip entirely.

Knowing which county follows which custom helps buyers and sellers set accurate expectations before they ever sign a contract. Below is the county-by-county breakdown for the greater Tampa Bay metro area.

What Is the Custom in Hillsborough County?

Hillsborough County (Tampa, Brandon, Riverview, Plant City) follows the seller-pay custom. The seller pays for the owner's title insurance policy, and the seller typically chooses the title company. The buyer pays for the lender's policy if they are financing the purchase.

This is the most common arrangement across Florida and the one most agents in the Tampa Bay area are accustomed to. In practice, the seller's cost for the owner's policy on a $400,000 sale would be $2,075 using Florida's promulgated rate tiers.

What Is the Custom in Pinellas County?

Pinellas County (St. Petersburg, Clearwater, Largo, Dunedin) also follows the seller-pay custom. The seller pays for the owner's policy and selects the title company. This mirrors Hillsborough's practice and makes cross-county deals between Tampa and St. Pete straightforward.

What Is the Custom in Pasco County?

Pasco County (New Port Richey, Wesley Chapel, Zephyrhills, Land O' Lakes) follows the seller-pay custom. Same as Hillsborough and Pinellas. The seller provides the owner's policy, and the buyer is responsible for their lender's policy.

What Is the Custom in Manatee County?

Manatee County (Bradenton, Palmetto, Lakewood Ranch) follows the seller-pay custom. The seller pays for the owner's title insurance policy. Manatee is part of the broader Central Florida pattern where seller-pay is the norm.

What Is the Custom in Sarasota County?

Here is where it changes. Sarasota County (Sarasota, Venice, North Port) follows the buyer-pay custom. The buyer pays for the owner's title insurance policy and typically selects the title company. This is the opposite of the Tampa Bay norm and catches many transplant buyers off guard.

If you are a buyer purchasing in Sarasota County, factor the owner's title insurance premium into your closing cost estimate. On a $450,000 purchase, that adds $2,325 to the buyer's side of the closing statement.

What About Hernando and Polk Counties?

Hernando County (Brooksville, Spring Hill) follows the seller-pay custom, consistent with most of the Tampa Bay metro area.

Polk County (Lakeland, Winter Haven, Bartow) also follows the seller-pay custom. Polk sits at the eastern edge of the Tampa Bay market and aligns with Central Florida norms.

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How Does the County-by-County Breakdown Look at a Glance?

County	Who Pays for Owner's Policy	Who Chooses Title Co.
Hillsborough	Seller	Seller
Pinellas	Seller	Seller
Pasco	Seller	Seller
Manatee	Seller	Seller
Hernando	Seller	Seller
Polk	Seller	Seller
Sarasota	Buyer	Buyer

What Does the Purchase Contract Actually Say?

The standard Florida REALTORS®/Florida Bar "AS IS" and standard residential contracts include a section where the parties select who pays for title insurance. The checkbox options typically read "Seller shall pay" or "Buyer shall pay." Agents default to the local custom, but the contract is what controls. If a buyer in Hillsborough County negotiates for the seller to pay (which is already the custom), both sides check that box and move on. If a Sarasota buyer wants the seller to pay instead, they can negotiate that in the offer.

The bottom line: custom sets the expectation, but the signed contract is the binding agreement.

Why Does the Paying Party Usually Choose the Title Company?

The logic is simple: if you are paying for a service, you should have the right to select the provider. The party paying for title insurance generally picks the title company because they have the financial incentive to choose a reputable, efficient agent. This is a custom, not a law, but it is strongly adhered to across Florida.

At Coastal Collective Title, we work with buyers, sellers, agents, and lenders across every Tampa Bay county. Whether the seller or buyer is choosing the title company, we provide transparent pricing and responsive service from contract to close.

Lori LaCoppola

Owner & Managing Partner

Lori founded Coastal Collective Title to deliver a premium, relationship-first closing experience across Florida. With deep title industry expertise, she oversees every transaction with precision and personal attention.

813-544-8626 lori@coastalcollectivetitle.com

Frequently Asked Questions

Is the seller required by law to pay for title insurance in Florida?: No. Florida law does not require either party to pay for title insurance. Who pays is determined by local custom and what the buyer and seller negotiate in the purchase contract. The customs described here are defaults, not legal requirements.
Can the buyer and seller split the cost of title insurance?: Yes. The purchase contract can specify any arrangement the parties agree to, including a 50/50 split, the buyer paying the full amount, or the seller paying everything. The contract controls, regardless of local custom.
What is the difference between an owner's policy and a lender's policy?: An owner's policy protects the buyer's equity in the property for as long as they own it. A lender's policy protects the mortgage lender's interest in the property. If the buyer has a mortgage, the lender will require a lender's policy, and the buyer almost always pays for it.
Who chooses the title company in a Florida real estate transaction?: In most Florida counties, the party who pays for title insurance gets to choose the title company. In seller-pay counties like Hillsborough, the seller typically selects the title agent. In buyer-pay counties like Sarasota, the buyer usually makes the choice.
Do these customs apply to new construction homes?: New construction contracts often have their own terms dictated by the builder. Many builders specify their preferred title company and may allocate costs differently than the local residential custom. Always read the builder's contract carefully.

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Disclaimer: This article is for general educational purposes only and does not constitute legal, financial, or tax advice. Local customs described here are general practices and may vary by transaction. The purchase contract controls which party pays. Always consult a licensed professional for advice specific to your situation.