In the example transaction between Henry and Susan, who pays the title insurance premium?

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Multiple Choice

In the example transaction between Henry and Susan, who pays the title insurance premium?

Explanation:
In Florida real estate practice, the seller typically pays for the owner’s title insurance policy. That policy protects the buyer’s (Susan’s) interest in the property against title defects, and it’s a customary closing cost borne by the seller unless the contract says otherwise. If there’s financing, the buyer usually pays for the lender’s title insurance policy to protect the lender. Since Henry is the seller in this scenario, he pays the title insurance premium for the owner’s policy. This aligns with standard practice, though the exact allocation can be negotiated in the contract.

In Florida real estate practice, the seller typically pays for the owner’s title insurance policy. That policy protects the buyer’s (Susan’s) interest in the property against title defects, and it’s a customary closing cost borne by the seller unless the contract says otherwise. If there’s financing, the buyer usually pays for the lender’s title insurance policy to protect the lender. Since Henry is the seller in this scenario, he pays the title insurance premium for the owner’s policy. This aligns with standard practice, though the exact allocation can be negotiated in the contract.

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