Buying in Sarasota and wondering what title insurance actually covers? You are not alone. Title issues can hide in old deeds, unpaid liens, or condo documents, and they often surface right when you are ready to close. This guide breaks down what title insurance protects, what it does not, and the Sarasota specifics you should know so you can move forward with confidence. Let’s dive in.
What title insurance does
Title insurance protects you from losses caused by defects in a property’s title that existed on or before the day your policy is issued. It does not insure against future events, but it does step in if a past problem appears later. There are two separate policies: an owner’s policy that protects your equity, and a lender’s policy that protects the mortgage company. Most lenders require a lender’s policy; an owner’s policy is optional but strongly recommended.
With either policy, you pay a one-time premium at closing. The owner’s policy generally stays in place for as long as you or your heirs have an interest in the property. The lender’s policy lasts for the life of the loan.
What standard policies cover
A standard policy is designed to protect against hidden, recorded problems you could not reasonably find on your own.
- Prior recorded liens that were not properly released, including mortgages, tax liens, or judgments.
- Forged, fraudulent, or improperly executed deeds or releases.
- Errors or omissions in public records, such as incorrect indexing or clerk mistakes.
- Unknown heirs or missing parties whose interests were not cleared in a prior transfer.
- Priority disputes among recorded liens, subject to the policy’s terms.
You can often add endorsements for added protection. Common options insure survey-related boundary issues, access, zoning matters, or condominium and planned unit development items, subject to availability and underwriter approval.
What standard policies exclude
Standard policies include exceptions that limit coverage unless you add endorsements or otherwise address the issue.
- Matters not shown in public records, such as unrecorded easements or informal rights-of-way.
- Rights of parties in possession and adverse possession claims.
- Problems created after the policy date, since title insurance looks backward, not forward.
- Government police powers like zoning and code enforcement; zoning endorsements may be available.
- Environmental contamination and cleanup costs.
- Specific items listed as exceptions in the title commitment, such as recorded covenants or easements.
- Flood risk and FEMA flood zone designations; these are not title defects.
- Survey-related discrepancies when the policy carries a standard survey exception; a survey endorsement can narrow this gap.
Florida and Sarasota factors to know
Regulated rates in Florida
In Florida, title insurance premiums are regulated. That means base rates follow approved schedules rather than wide price swings between companies. Your total closing costs can still vary based on endorsements, escrow services, and recording fees.
Sarasota County record searches
Your title company examines Sarasota County’s public records for deeds, mortgages, liens, court judgments, and related filings. They also verify parcel and tax information using county resources to confirm ownership and tax status.
Condo and HOA considerations
Sarasota has a large number of condominiums and planned communities. Florida’s condominium and homeowners’ association laws create specific lien and foreclosure rights. Your title search should look for unpaid assessments, association liens, and governing documents that affect the property. Title commitments often list association-related exceptions, and condo or PUD endorsements may be recommended.
Waterfront boundaries and surveys
On barrier islands and along the bayfront, surveys matter. Unrecorded easements, dock encroachments, or boundary misunderstandings can cause disputes. Ordering a current survey and considering a survey endorsement can help protect you.
Construction and contractor liens
Florida law allows contractors and suppliers to record construction liens if they are not paid. A title search will look for recorded liens, but claims that are not recorded on time may still be a risk. Some transactions consider a mechanic’s lien endorsement when available.
Flood zones and coastal risk
Title insurance does not cover flood damage or flood zone designations. If the property is in a Special Flood Hazard Area, your lender will likely require flood insurance. Always confirm the property’s flood status and plan accordingly.
Homestead, probate, and dormant claims
Florida homestead rules and probate can affect title when an owner passes away or transfers property. Proper probate releases and spousal or heir rights must be cleared. Florida’s Marketable Record Title Act can extinguish very old claims in some cases, but it requires careful review by your title professional.
Who pays in Sarasota closings?
There is no statewide rule that sets who pays for an owner’s title policy. In many Florida deals, sellers pay for the owner’s policy to streamline the sale, but this is negotiable. Local practice can vary by neighborhood, property type, and contract terms. Confirm the cost allocation in your purchase agreement.
The title process in Sarasota
- Open the order: Your agent, lender, or you order title work with a local title company or real estate attorney.
- Search and commitment: The title company searches county records and issues a title commitment that lists coverage, exceptions, and requirements.
- Cure of defects: Any liens, judgments, or encumbrances are cleared before closing or paid at closing through escrow.
- Survey and endorsements: Decide if you need a new survey, and choose endorsements that address condo, PUD, access, or survey matters.
- Closing: The title company handles escrow, payoffs, prorations, and documents, then issues policies after recording.
- Post-closing: The lender’s policy is recorded, and the owner’s policy is delivered to you.
Costs and how to plan
Because Florida approves title premium schedules, base rates are relatively consistent across providers. Your total out-of-pocket costs depend on endorsements, escrow and settlement fees, and recording charges. Ask your title company for a written estimate and review the title commitment for any exceptions that might require endorsements.
Smart moves for Sarasota buyers
- Get an owner’s policy, even if your lender already requires a lender’s policy.
- Review the title commitment line by line and ask for plain-language explanations of exceptions.
- Obtain or review a recent ALTA survey; consider a survey endorsement if boundaries, waterfront structures, or access are questions.
- For condos or planned communities, review association documents and consider related endorsements.
- Verify flood zone status and secure flood insurance if needed.
Smart moves for Sarasota sellers
- Gather payoff statements, releases, and prior title documents early to avoid delays.
- Address known liens or judgments with the title company as soon as the property goes under contract.
- Be prepared to negotiate who pays for the owner’s policy and related fees in the contract.
When to involve a title attorney
Most Sarasota residential closings run smoothly with a licensed title company. Consider bringing in a real estate attorney if you have complex title defects, unresolved probate or heirship issues, boundary disputes, unusual exceptions in the title commitment, or unique commercial or mixed-use factors.
Bottom line
Title insurance protects you against the kinds of hidden, past problems that can threaten your ownership or your mortgage after closing. In Sarasota, condo and HOA rules, waterfront surveys, construction liens, and flood considerations add local complexity that is best handled early in the process. With the right coverage, endorsements, and a clear title commitment, you can close confidently and enjoy your new home or investment.
Have questions about your specific property or upcoming closing? Connect with Laura Millslagle for local, hands-on guidance tailored to your Sarasota move.
FAQs
Does Sarasota title insurance cover flood damage?
- No. Title insurance covers ownership and title defects that existed at the policy date. Flood damage requires separate flood insurance if your lender or risk tolerance calls for it.
How long does an owner’s title policy last in Florida?
- It generally lasts for as long as you or your heirs have an interest in the property, and you pay the premium once at closing.
Does a lender’s title policy protect the homeowner?
- No. A lender’s policy protects only the lender’s security interest. Buy an owner’s policy to protect your equity.
Will a standard policy cover a boundary dispute in Sarasota?
- Not usually. Standard policies include a survey exception. Obtain a current survey and consider a survey endorsement to insure against certain encroachments or discrepancies.
Are condo or HOA assessment liens covered by title insurance?
- Title insurance covers defects existing at the policy date. New liens after closing are typically not covered. Condo or PUD endorsements may address some association-related matters, subject to availability.
Who typically pays for the owner’s policy in Sarasota closings?
- It is negotiable. Many Florida transactions have the seller pay for the owner’s policy, but practices vary by neighborhood and contract.
How can I check for recorded liens or encumbrances in Sarasota County?
- Your title company performs a full record search. You can also review county public records and property data to understand ownership and tax status, then confirm findings with your title professional.
