What Buyers Should Look for in the Title Report Before Closing in South Florida?

Buying a home in South Florida is exciting, but there are a lot of moving pieces before you can officially call a property yours. One critical step in the process is reviewing the title report, sometimes called a title commitment. If you’re a buyer, understanding what’s in this report is key to making sure your new home is truly yours, free and clear of any legal or financial issues. We recently discussed this topic with closing and real estate professionals, and here’s a breakdown of what buyers should know.

What is a Title Report?

A title report is a document that outlines the current ownership of a property and any claims, liens, or issues that could affect the title. In Florida, title commitments are usually prepared by a title company or a law firm acting as the closing agent.

The report shows a list of requirements that must be cleared before a buyer can receive a clean title. Think of it as a roadmap that ensures there are no surprises before you close on your home.

Why You Don’t Need to Worry Too Much

“On one hand, I just want to be clear that when a buyer or someone is choosing us as the closing agent, they don't need to be worried about anything because it's our job to make sure that the buyer is getting a clear title, so they can rest easy knowing that.” – Jerron

As a buyer, you generally don’t need to fix anything yourself. The closing agent’s job is to make sure the property is delivered with a clean title. Hiring a reputable Florida title company ensures that they handle the legwork to clear the title.

However, knowing what to look for can help you understand the process and give you peace of mind.

What Are Common Issues That Show Up on a Title Report?

“The most common thing to show up on a title commitment is a mortgage… We will order a payoff on that. We will collect the money from the seller from the proceeds of the transaction, and we will pay off that mortgage so that that mortgage is cleared at the time of closing.” – Jerron.

Here are some frequent items that can appear on a title report in South Florida:

1. Outstanding Mortgages

Even if a seller has lived in a home for decades, there might still be an active mortgage. For example, a seller could have originally taken out a $500,000 mortgage and still owe $250,000. The title company orders a payoff and ensures the remaining balance is paid from the sale proceeds, clearing the mortgage before closing.

2. Liens

Liens are claims against the property for unpaid debts. Common types include:

• Municipal liens: Often arise from code violations that turn into fines.

• Special liens: For improvements like solar panels.

All liens must be resolved to give you a clean title.

3. Notices of Commencement

A notice of commencement is filed when a seller hires a contractor for work such as installing a screen porch, fence, or roof. In Florida, these notices remain active until properly closed out.

Sometimes contractors don’t finish the paperwork or go out of business. The title company will obtain affidavits confirming that nothing is owed, allowing the title to clear.

4. Open Permits or Code Violations

Occasionally, a title report will reveal open permits or unresolved city code violations. In these cases, the closing agent can hold back funds in escrow from the seller to resolve the issues after closing. This ensures the deal can move forward on time, while protecting you from inheriting unpaid fines or incomplete work.

Lender Considerations

If you are financing your home with a mortgage, your lender will require title insurance. Lenders are usually strict about title issues and typically won’t allow a closing to proceed until all significant liens or notices of commencement are resolved.

For cash buyers, there’s more flexibility. Technically, you could accept certain unresolved issues, but most buyers prefer full clearance to avoid any potential “cloud on title.”

How Title Companies Handle Issues?

A reputable Florida title company or law firm will:

• Identify any issues listed in the title report

• Work with the seller, lenders, and contractors to clear liens or mortgages

• Obtain necessary affidavits or releases

• Hold funds in escrow if needed to resolve outstanding matters post-closing

Their job is to deliver a clean title, so you don’t have to chase any of this down yourself.

How Buyers Can Use the Title Report Before Closing?

Even though your title company handles the work, it’s helpful to:

• Review the report: Look for familiar items such as mortgages, liens, or construction notices.

• Ask questions: If something is unclear, ask your closing agent for clarification.

• Understand the process: Some issues may require escrow or a few extra days to resolve.

• Stay informed: The report gives insight into the property’s history, which can affect future planning or renovations.

Being informed helps you avoid surprises and ensures a smoother closing.

Working Together: Buyers, Sellers, and Realtors

“Sometimes we will hold… money in escrow to, let's say, clear out some sort of code violation or open expired permits… That way, the deal can close on time and we'll hold escrow, and the parties are happy.” – Jerron

Title issues are rarely solved in isolation. Realtors and closing agents collaborate with sellers and buyers to ensure everything is cleared. If a contractor cannot be reached for an old notice of commencement, all parties may need to negotiate a solution.

This teamwork ensures:

• Lenders are satisfied

• Buyers receive a clear title

• Sellers can close without lingering issues

Key Takeaways for South Florida Buyers

Your title company is your advocate; you don’t need to chase liens or contractors yourself.

• Mortgages and liens are common; most issues are routine and cleared before closing.

• Open permits or contractor notices may require extra steps, which your closing agent handles.

• Cash buyers have flexibility, but most prefer full clearance.

• Communication is key, ask questions and stay informed throughout the process.

What This Means for You as a Buyer?

Reviewing your title report before closing doesn’t have to be stressful. In Florida, your closing agent and title company handle the complex work, ensuring any mortgages, liens, or notices are properly addressed. Buyers can feel confident knowing their new home comes with clear title, and minor issues that remain are usually resolved through escrow or post-closing steps. Taking the time to understand your title report helps you feel informed and secure, making your South Florida home purchase smoother.

Work With a Top South Florida Realtor®

If you’re thinking about buying a home in South Florida and want clarity before making decisions, it helps to speak with someone who does this every day. Larry Mastropieri, Owner and Broker of The Mastropieri Group, Realtors®, has worked with more than 2,000 buyers and sellers and is recognized as one of Florida’s Top Real Estate Professionals (Newsweek & Statista, 2025). Call (561) 544-7000 to schedule a private consultation and discuss your next steps.

About the Experts

This information comes from real conversations with two professionals who see issues in the field every day:

• Larry Mastropieri, Broker/Owner of The Mastropieri Group, Realtors®, has closed more than 2,000 homes locally. He understands how flood maps, insurance quotes, and inspection results affect the deal.

• Jerron Kelley is a South Florida real estate attorney who helps buyers and sellers evaluate contract terms and limit risk. 

Their combined experience helps buyers avoid mistakes and stay protected throughout the transaction.