Using a title company or attorney on a for sale by owner sale
A for sale by owner title company does the same work it does on any Florida sale: it confirms you can transfer clear title, holds the deposit, gathers payoffs, prepares the closing documents and sends everyone their money. On an owner sale it becomes even more important, because nobody else is coordinating the closing for you. This page explains what a title company does, how that compares with using a Florida real estate attorney, how escrow works, the closing steps in order and who usually pays which title costs. It is general information, not legal advice.
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What a for sale by owner title company does
A title company acts as the neutral closing agent between buyer and seller. It does not represent either side. Its job is to get the sale closed according to the contract and to make sure the buyer receives insurable title.
The work starts with a title search of the property's recorded history. From that search the company issues a title commitment, which lists what must be cleared before closing and what the title policy will and will not cover.
The title company also holds the escrow deposit, orders lien and association searches, requests your mortgage payoff, prepares the deed and the settlement statement, collects the buyer's funds and records the documents with the county.
After closing, it pays off your loan, pays any agreed compensation and other charges, and sends you your net proceeds. It also reports the sale for tax purposes.
What a title company does not do is give legal advice. It will not tell you whether a contract term is good for you or what to do in a dispute. Those questions go to a Florida real estate attorney.
Read next: the hub for owners selling themselves · the seller side of closing, stage by stage
Do I need a title company to sell my house?
Florida does not force every sale through a title company, because a real estate attorney can close a sale too. In practice, almost every Florida sale uses one or the other, and an owner sale is no exception.
If the buyer is getting a mortgage, the lender will require a lender's title policy and a closing agent to handle its funds. That alone puts a title company or attorney in the middle of most sales.
Even with a cash buyer, closing without a professional is risky. The buyer wants proof of clear title and a title insurance policy. You want the deposit held by a neutral party and the money moved safely. Liens must be paid and documents recorded correctly.
Doing all of that between two private parties leaves room for expensive mistakes, including wire fraud and unpaid liens. For most owners, the closing agent's fees are a small price for getting those parts right.
So the honest answer is that you need a closing agent. Whether that is a title company or an attorney is your choice, often shared with the buyer.
Title company or real estate attorney?
In Florida, both title companies and real estate attorneys commonly act as closing agents. Many attorneys also issue title insurance as agents of title underwriters. Either can close an owner sale.
The difference is legal advice. A title company stays neutral and will not advise either side. A real estate attorney can advise the client who hires them, review or prepare the contract, explain your obligations and handle problems that need legal judgment.
A for sale by owner title company is often enough when the sale is simple: one owner, a standard contract, a clean title and no unusual terms. Many owners pair a title company closing with a separate attorney review of the contract before signing.
An attorney is worth considering when there is an estate or probate, a divorce, more than one owner, a tenant, a title defect, seller financing or an unrepresented buyer. In those cases legal judgment is part of getting to closing.
Ask each office what is included before you choose. Some attorneys close through their own title agency. Some title companies work with attorneys they can refer you to. Fees and services vary, so compare quotes.
Read next: the attorney's role compared with an agent's
Choosing a for sale by owner title company
Who picks the closing agent is a term in the contract. In Florida, it often follows who pays for the owner's title policy. That custom varies by county, so the choice is often negotiated along with the rest of the deal.
Look for a title company or attorney office that handles residential closings in your county every week. Local experience matters with association approvals, municipal searches and the habits of local lenders.
Ask how they communicate. On an owner sale you will have more questions than a seller with a listing agent, so a closer who answers calls and explains documents is worth a lot.
Ask for a written estimate of the seller's title and closing charges. Settlement fees, title search fees, lien search fees and courier or recording charges vary between offices.
Ask about their fraud protections. A good closing agent will explain exactly how they verify wiring instructions and will tell you never to trust a changed instruction sent by email.
Read next: who pays the title policy by county
Escrow for sale by owner: holding the deposit
The buyer's escrow deposit should go to your for sale by owner title company or closing attorney, not to the seller. The contract names the escrow agent, the amount and the deadline for each deposit.
The escrow agent holds the money in a trust or escrow account and releases it according to the contract. At closing it is credited toward the buyer's price. If the contract is cancelled, the agent follows the contract's terms and the law on releasing it.
If the buyer and seller disagree about who gets the deposit, the escrow agent will not simply pick a side. Florida has rules for handling escrow disputes, and an attorney can explain your options.
As soon as the contract is signed, send it to the escrow agent and confirm when the deposit arrives. A late deposit is a contract issue in its own right, and you want to know about it quickly.
Never send or accept deposit money through a channel the escrow agent has not confirmed by phone. Deposits are a common target for wire fraud.
Read next: the deposit terms in an owner sale contract
For sale by owner steps to closing, in order
Step one: send the signed contract to your for sale by owner title company or attorney. They open the file, confirm the deposit and note every deadline.
Step two: the closing agent orders the title search, municipal lien search and, if there is an association, the estoppel. You provide your mortgage information so they can request a payoff.
Step three: the buyer's contingencies run. Inspection, appraisal and financing each have their own deadlines. You give access as the contract requires and answer requests quickly.
Step four: the closing agent clears any title issues, receives the association estoppel and the payoff, and prepares the deed and settlement statement. Ask to see the statement before closing day.
Step five: you sign the deed, settlement statement and affidavits, in person or by mail-away closing. The buyer funds the purchase, and the lender funds its loan if there is one.
Step six: the closing agent records the deed, pays off your mortgage and other charges, and wires or sends your net proceeds. Ask in advance when the funds should arrive.
Read next: what you sign at a Florida closing
Title searches, liens and clearing problems
Most title searches find nothing unusual. When one does, it is usually something that can be fixed with time, such as an old mortgage that was paid but never released or a judgment that belongs to someone with a similar name.
The municipal lien search covers things the land records may not show, including unpaid utilities, code enforcement fines and open permits. Open permits from past work are common in South Florida and can take weeks to close out.
The title commitment lists what must be done before closing. Read it as soon as it arrives. If it lists requirements for you, start on them right away.
Some problems need legal work, such as an heir who may have a claim or a boundary dispute. A for sale by owner title company can identify those problems. An attorney is often the one who solves them.
Opening title early is the best protection. The earlier a problem appears, the more likely it can be cleared before the closing date in the contract.
Read next: common title defects and fixes
Who pays title costs in Florida
Who pays for the owner's title insurance policy is a matter of local custom in Florida, not a statewide rule. In Miami-Dade and Broward, the buyer often pays for the owner's policy. In Palm Beach and much of the rest of Florida, the seller usually does.
Because it is custom, it is negotiable. The contract states who pays and, often, who chooses the title company. Read that section before you sign rather than assuming your county's habit applies.
The buyer's lender policy is usually a buyer cost. Settlement fees and search fees may be split or assigned by the contract, so check the closing agent's estimate.
Documentary stamp tax on the deed is usually paid by the seller in Florida. It is calculated from the sale price, and the closing agent works out the exact figure on the settlement statement.
Ask your for sale by owner title company for a seller estimate early, then compare it with your own net sheet. Surprises on the settlement statement are much easier to fix a week before closing than at the table.
Read next: how deed stamp tax is calculated · the full cost of an owner sale
The settlement statement and your net proceeds
The settlement statement is the closing agent's full accounting of the sale. It lists the price, every credit and every charge, and the amount you receive.
Seller charges usually include the mortgage payoff, documentary stamp tax on the deed, title charges assigned to you by the contract, prorated property taxes, association amounts and any agreed compensation or repair credits.
Property tax prorations confuse many sellers. Florida property taxes are paid in arrears, so the seller usually credits the buyer for the part of the year the seller owned the home. The closing agent calculates it.
Compare the statement against your own estimate before closing day. If a number is different, ask the closing agent to explain it. Most differences have simple answers, and errors are easier to fix early.
If the home is in an association, the estoppel figures go straight onto the statement. Any unpaid dues or assessments are paid from your proceeds.
Read next: estimate your seller costs · working out what you keep
Working with a for sale by owner title company remotely
You do not have to attend closing in person. Mail-away and remote closings are routine in Florida, which helps owners who have already moved or who live out of state.
Tell the closing agent early if you will be away. They will explain how documents are signed and notarized, and how originals are returned.
A power of attorney can sometimes be used, but it has to be arranged in advance and approved by the closing agent and any lender. Do not wait until closing week to raise it.
Give your bank details for the proceeds wire through a channel you started, and confirm them by phone with a number you already had. Treat any email asking you to change wiring instructions as fraud until you have spoken with the closing agent directly.
Remote owners should also plan for keys, utilities and the final walk-through, since nobody will be on site unless you arrange it.
Read next: selling from out of state
What a for sale by owner title company needs from you
The closing goes faster when you send the right information early. The signed contract and all addenda come first.
Next come your contact details, the names of everyone on title, your mortgage lender and loan number, any second mortgage or home equity line, and association contact information if there is one.
Expect requests for identification, marital status information and, for some sellers, documents such as a trust agreement, a death certificate or court papers in an estate sale.
If you agreed to pay part of the buyer's agent compensation, send the written agreement so the closing agent can pay it from your proceeds.
Keep copies of everything you send. If a document is lost or questioned, having your own record saves time.
Read next: the owner's document checklist · association estoppel letters
Keep control and still get on the MLS
A flat fee MLS listing puts your home where buyer agents search while you keep running the sale. Add only the help you want: pricing, contract coordination or negotiation.
These pages explain how selling by owner works, with Florida specifics where they matter. They are not legal, tax or financial advice. For a contract, a title issue or an estate, speak to a Florida real estate attorney; for tax, speak to an accountant. We are glad to introduce you to either, and a home valuation costs nothing in the meantime.
Frequently Asked Questions
- Does the seller need a title company?
- Florida does not require a title company specifically, because a real estate attorney can also close a sale. In practice nearly every sale uses one or the other. A buyer's lender will require a closing agent and a lender's title policy, and even cash buyers want title insurance and a neutral party holding funds. So most owners need a closing agent, and the choice is between a title company and an attorney.
- Who chooses the title company on a for sale by owner sale?
- The contract decides it. In Florida, the choice often follows whoever pays for the owner's title policy, and that custom varies by county. In Miami-Dade and Broward the buyer often pays, while in Palm Beach and much of the rest of Florida the seller usually does. Because it is custom rather than law, it can be negotiated.
- Do I need a for sale by owner attorney?
- Not always. A title company can close a simple sale. Many owners still hire a Florida real estate attorney to review the contract before signing, and an attorney is worth considering for estates, divorces, title defects, seller financing, tenants or an unrepresented buyer. A title company stays neutral and cannot give legal advice. An attorney can advise you.
- How does escrow work for a sale by owner?
- The buyer sends the deposit to the escrow agent named in the contract, normally the title company or closing attorney. The agent holds it and releases it according to the contract, crediting it to the buyer at closing. If the parties disagree about a cancelled contract, the agent follows the contract and Florida's rules on escrow disputes rather than choosing a side.
- How much does a title company charge the seller?
- It depends on the price, the county custom on who pays for the owner's policy, and the closing agent's own fees for settlement and searches. Owner's title insurance premiums in Florida are regulated, but other fees vary between offices. Ask for a written seller estimate before choosing, and check it against the settlement statement before closing.
- Can a title company help me write the contract?
- A for sale by owner title company can often help the parties get a current standard Florida form, and it will tell you what it needs to close. It will not advise you on what the terms should be, because it is neutral. For advice on the contract, hire a Florida real estate attorney, who can review or prepare it for you.
- How long does a title company take to close an owner sale?
- It depends mainly on the contract dates, the buyer's financing, association approvals and whether the title search finds anything. A cash sale with clean title can move quickly. A financed condo sale with a slow association takes longer. The closing date in your contract is the target, and opening title right away gives the most room to meet it.
- What happens if the title search finds a problem?
- The title commitment will list it as a requirement to clear before closing. Many problems, such as an unreleased old mortgage, are fixed with paperwork from the lender. Others, such as an heir's claim or a boundary dispute, may need an attorney. The earlier the search runs, the more time there is to fix the issue before the closing date.
More FSBO Guides
For sale by owner contract: what goes in it and who writes it
Who writes the contract on an owner sale, the Florida forms most sales use, and when an attorney review pays off.
Paperwork for selling a house by owner: the full checklist
Every document an owner needs, from disclosures and the contract to the deed and settlement statement, and who prepares each.
What it really costs to sell a house by owner
Every cost an owner still pays, from title and deed stamps to buyer-agent requests, and how to compare routes on net.
Work out your numbers
What is my home worth?
A valuation built from closed sales in your own community, with the comparables named.
Estimate your net proceeds
Work the commission, documentary stamps and closing costs against your own number.
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How we list a home
What we do between the listing agreement and the closing table, phase by phase.
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