This will inform you of the basics of what are the services rendered to you by a title insurance company.  Please remember though, this pertains mostly for residential properties being mortgaged, not for commercial or all cash deals (F.S. 627.7711).

The Florida Statues defines closing services as the services performed by a licensed title insurer, title insurance agent, or agency in the agent’s or agency’s capacity as such, including, but not limited to, preparing documents necessary to close the transaction, conducting the closing, or handling the disbursing of funds related to the closing in a real estate closing transaction in which a title insurance commitment or policy is to be issued.

This means the closing services fee listed on the settlement statement form is to include all the fees and charges made by the agency to close and complete the transaction. Consumers should not be charged additional fees in addition to the amount listed as the closing or settlement services fee on the HUD-1 or other settlement statement form.

Examples of fees that should not be listed as separate line items on the form include, but are not limited to:

– Copies
– Postage and handling
– Document preparation fees
– Notary services
– Document storage or warehousing fees
– Electronic conversion of document to CD or DVD formats
– Digital documents

The penalty for violations such as this can be as strong as suspending or revoking the license of the agent and the agency involved in the practice. Agencies that charge additional fees as separate line items may be found to be engaging in deceptive practices against Florida consumers in violation of the Florida Statues. Agencies may provide consumers with detailed listing of the fees and charges that comprise the closing service fee being charged. The listing would be in addition to the settlement statement (HUD-1) form and the amounts included would need to total to the same number listed on the settlement statement form as the closing services fee.