There’s a simple way to save money before you close on your home that most real estate agents and brokers don’t talk about. It’s called the Butler Rebate and it lets Florida title insurance companies give you back a portion of the money you spend on your title insurance policies. Let’s get right down to
There’s a simple way to save money before you close on your home that most real estate agents and brokers don’t talk about. It’s called the Butler Rebate and it lets Florida title insurance companies give you back a portion of the money you spend on your title insurance policies. Let’s get right down to business, so you can hang onto the money that’s rightfully yours.
How Title Insurance Works
There are two kinds of title insurance—a lender’s policy and an owner’s policy. The lender’s policy protects your lender. That’s the bank that holds your mortgage. The owner’s policy protects you, the owner. It also protects your heirs when they become owners after you pass.
While homeowner’s insurance protects you from future events that might destroy the home, like flood or fire, title insurance protects you from past events that threaten your ownership of the home.
There are a ton of rules about what can or can’t happen during ownership and a number of things that can go wrong with title, so it’s important to have title insurance.
What You Pay
When you buy title insurance, you pay for it based on the sale price of the home. Who pays for title insurance is determined by county. The price of the policy is determined by law and is set at a staggered rate. That means you pay a price per dollar, but that price changes depending on the price range of the house.
If this seems complicated, we can chalk it up to laws sometimes just making things complicated. The main idea is that the prices are set and can’t be changed—except by the Butler Rebate.
What is the Butler Rebate?
The Butler Rebate is the result of a Florida Supreme Court Case. In 1992, Florida enacted several laws regulating the price of title insurance. In 2000, Mr. Butler argued that these laws deprived him of his right to negotiate a title agent’s commission. The Supreme Court agreed with him.
So, now, your title agent can rebate a portion of the price to you. The price for the policy is still set, but title agencies can offer you a competitive number, because they are rebating part of their profit to you.
How Do You Get The Butler Rebate?
Getting the Butler Rebate is easy. If your title agency doesn’t offer it to you, you just have to ask for it. They may refuse, which is their right, but it’s your right to shop for title insurance until you find someone who will give it to you right off the bat.
Your best bet for saving money on title insurance and other closing costs is to work with a real estate closing company with online services. They’re far more operationally efficient than traditional agencies, so they can pass the savings to you, both in the form of the Butler Rebate on your title insurance policies and by providing transparent, low-cost, flat-fee closing services.