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New Construction Closing Costs in Florida: Why Choosing Your Own Title Company Could Save You Thousands

Buying a New Construction Home? Don’t Overlook Your Title Company Options

New Construction Closing Costs in Florida: Why Choosing Your Own Title Company Could Save You Thousands

Purchasing a brand-new home from a builder is an exciting milestone. New construction homes offer modern floor plans, energy-efficient features, builder warranties, and the opportunity to personalize many aspects of the home.

However, one area many buyers overlook is the cost of closing the transaction.

Before signing a contract with a builder, it is important to understand your options regarding title and closing services.

Many Buyers Don’t Realize They’re Paying for Title in New Construction

In many Florida real estate re-sale transactions, the seller pays for the owner’s title insurance policy.

However, with new construction homes, builders often structure contracts differently. In many cases, the buyer may be responsible for paying the owner’s title insurance policy and various settlement-related fees.

When buyers are paying these costs, it may be worth asking whether they have the ability to choose their own title company while still receiving the builder incentives.

Every builder is different, and contract terms vary. Some builders require buyers to use a specific affiliated title company, while others may allow outside title services under certain circumstances.

Before signing a builder contract, ask questions and understand your options.

Builder-Owned Title Companies Are Common

Many large national and regional builders operate affiliated title companies or have preferred title providers that handle a significant portion of their transactions.

There is nothing inherently wrong with using a builder-affiliated title company. However, buyers should understand that title fees, settlement charges, and closing costs can vary from one provider to another.

Shopping for services before signing a contract can help buyers make informed decisions while negotiating.

A Recent Sol Title Client Saved Thousands

Recently, a buyer purchasing a new construction home compared the estimated settlement costs between the builder’s title provider and Sol Title.

After reviewing the numbers, the difference in settlement-related costs between the builder and Sol Title’s fee structure amounted to thousands of dollars.

Every transaction is unique, and savings will vary depending on the purchase price, title charges, and builder requirements. However, the experience highlights why buyers should compare costs before committing to a title company.

Many consumers spend weeks comparing mortgage rates, homeowners insurance, and home upgrades while never considering whether title fees are competitive.

Shop Before You Sign

One of the most important pieces of advice for new construction buyers is simple:

Shop before you go under contract.

Once a contract has been signed, changing title providers may become difficult or impossible depending on the builder’s requirements.

Before signing:

Ask who pays for title insurance.
Ask whether you can choose your own title company.
Request a detailed estimate of title and settlement fees.
Compare estimates from multiple providers.
Understand any incentives being offered by the builder, and if they are tied to you using their title vendors.

An informed buyer is in the best position to make a decision that fits their financial goals.

The Sol Title Difference

At Sol Title, we believe buyers deserve transparent pricing and exceptional service.

That’s why we offer:

$0 Settlement Fee
Mobile Closings
Net Sheet Calculator
Residential Closings
New Construction Closings
Commercial Closings
Attorney Access
Experienced Escrow and Closing Professionals

Our goal is to help buyers, sellers, builders, and Realtors achieve a smooth closing experience while maintaining competitive closing costs.

Informed Negotiation Hack for Buyers:

Get an estimate from the builder on closing costs. Then, present a detailed net sheet using our calculator which you can find HERE. Even if you end up using the builders title company, this detailed net sheet may help you negotiate lower fees with the builder. A little competition can bring down your costs.