The big question is, how many real estate transactions have you done and why haven't you ever gotten a rebate check from your title company?
Okay, before you angrily call your current title "partner" lets have a little story time.
The late S. Clark Butler was a millionaire real estate developer that created an empire of commercial and residential properties in the State of Florida. He called his business Butler Enterprises.
Mr. Butler being the shrewd business person that he was decided that he was paying far too much money in Florida title insurance premiums. He made an attempt to negotiate the amount of the title insurance premium with his title insurance provider only to be told that the State of Florida had enacted anti-rebate statutes under the auspicious goal of providing uniform rates to consumers and keeping title insurance companies in business.
Mr. Butler didn't like that. So he did something about it.
In a landmark case against Chicago Title Insurance Co. (et. al.) in the Supreme Court of Florida, the court found that the Florida anti-rebate statutes regarding the premiums to be negotiated between title insurance agents and consumers to be unconstitutional.
The result of this case is now known as the "Butler Rebate" and here's how it works:
- The Florida Department of Financial Services (DFS) declares insurance premium rates for title insurance. This is a different charge from closing and settlement rates, which are determined directly by a title agency.
Rebates from either the title insurance agency or underwriter that are considered unlawful are prohibited (these generally fall under "inducements" for volume or "kickbacks" for steering large business.)
- Insurance rates are promulgated in the State of Florida. This means that the insurance company that underwrites the title insurance policy receives 30% of the title insurance risk premium and the 70% balance of the risk premium is allocated to the title agency as compensation for providing primary title services.
- The dollar amount of the 70% agency-share of the risk premium is negotiable due to the Butler Rebate due to (Sec. 627.7711(b) Fla. Stat). Any reduction in the risk premium must be characterized as a "rebate" and not a "discount".
These semantics seem a bit silly, but they are important. At Silicon Title, we offer all clients a "Butler Rebate" regardless of how much business they conduct with our agency and without thought to the amount of future business that our customers will place with us. It is enough to know that we, as consumers ourselves, generally like premium services for less cost... and when we are happy with that service, we tell our loved ones so they too can get more for less.
The Butler Rebate that Silicon Title offers is an instant rebate. There is no amount of time that must pass in order to receive your Butler Rebate, regardless of which Florida county you may live in. Silicon Title will list the promulgated (legally required) rate on your settlement statement as the title premium, and then list your Butler Rebate on a separate line item which results in savings from your title insurance premium and ultimately, more money in your pocket at closing.
Sit for a moment and think of how many Florida properties you have bought and sold in the last 20 years since the Butler Rebate has been in effect. Is your title "partner" really looking out for your best interests like a good "partner" should? Or have they spent the last two decades lining their own pockets with the proceeds of your transactions?
Choose Silicon Title, where we use our technology to decrease cost and put money back in your pocket via the Florida Butler Rebate!