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Butler Rebate

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Even though title insurance rates in Florida are set by the Florida Department of Financial Services, other title related charges such as Closing Fees & Title Searches can vary. These differences can result in savings on your closing. It makes sense to shop around for title insurance and related costs. In fact according to Sirmans study, Dumm-Macpherson study, and Alexander report Florida residents paid more for title insurance services than residents in other states.

At TITLE SOURCE USA we’ve gotten rid of the junk fees and extra charges. TITLE SOURCE USA seeks to offer the lowest title insurance rates the State of Florida allows. Another discount available in Florida is the Butler Rebate, which is discussed in more detail below.

In General:

In Florida there is now an available rebate on title insurance commonly referred to as the Butler Rebate. If you have any questions on the Butler Rebate or any aspect of the Florida title insurance process please contact us and we’ll be happy to give you a customized competitive quote and answer any questions you may have.

Case Law:

The Butler rebate in Florida refers to the Supreme Court decision in the 2000 case of Chicago Title Insurance Co. v. Butler, 2000 WL 1535354 (Fla. 2000). In 1992 the Florida Legislature enacted the following laws.
  • Require the Department of Insurance to establish rates to be charged for title insurance "risk premium" (i.e., an amount intended to cover the risk assumed by the insurer and agent in connection with issuance of a title policy, as distinguished from charges for related services such as closing and settlement costs).
  • To guarantee that 30% of the adopted "risk premium" would be paid to the title insurance underwriter. To require that at least actual cost must be charged for related title services in addition to the adopted risk premium.
  • To prohibit the giving of "unlawful rebates" by a title insurer or title agent.

Butler argued that the anti-rebate law deprived him of his constitutionally protected right to negotiate a title agent’s commission. The Supreme Court agreed with him.

ON 10/1/07 THE DEPARTENT OF FINANCIAL SERVICES MEMORANDUM 12-2007 clarified House Bill 111 as follows:

State of Florida House Bill 111 modified section 626.9541, F.S. to allow title insurance agents and agencies to return any portion of the agent’s share of the premium or any other agent charge or fee to the person responsible for paying the related premium, charge or fee. The Florida Statues still prohibit a licensee from paying for the referral of title insurance business.

Conclusion:

As you can see Florida Title Insurance laws have changed. Now you are free to choose the best Real Estate Title Insurance Company. Under the new Federal laws and State laws, you have the right to choose the Title Insurance agency for your home, business, lot or tract of land and to choose the Title Insurance provider. The laws clearly state that no realtor, lender, mortgage broker or bank can require you to use their in house title insurance agency, their affiliated title insurance agency, or any other title insurance provider. Normally, buyers, sellers and homeowners have the land title insurance agency chosen for them. Realtors and lenders often refer this business to either their own affiliated companies, or they refer the title insurance businesso friends. NOW YOU CAN CHOOSE!!!
 
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TitleSource USA Inc
421 Montgomery Road, Ste 171
Altamonte Springs, FL, 32714
Phone: 407-629-9077 • Toll Free 877-848-3558 • Fax 407-339-8940
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