Florida Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Florida exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Florida uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Florida law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Florida practice.
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Florida Escrow & Title — Practice Questions & Answers
111 questions on Escrow & Title from the Florida real estate question bank. First 10 are free — sign up to unlock all 111.
Q1. Florida is primarily a 'title insurance state,' meaning that:
Explanation
Florida is known as a title insurance state because title companies (rather than attorneys) typically handle real estate closings and issue title insurance policies. Attorneys may be involved but are not required for most residential closings.
Q2. In Florida, documentary stamp taxes on a warranty deed are calculated based on the:
Explanation
Florida documentary stamp tax on deeds is calculated at $0.70 per $100 (or fraction thereof) of the total purchase price or consideration paid. In Miami-Dade County, the rate is $0.60 per $100.
Q3. What is the purpose of a title commitment (also called a title binder) issued before a Florida closing?
Explanation
A title commitment is the title insurance company's promise to issue a title insurance policy after closing, subject to the satisfaction of listed requirements (such as payoff of existing mortgages) and subject to listed exceptions.
Q4. Which of the following liens would take priority over a first mortgage in Florida if not satisfied at closing?
Explanation
Ad valorem real property tax liens in Florida have super-priority and take precedence over all other liens, including first mortgages, regardless of the recording date.
Q5. In Florida, when must a broker deposit earnest money into an escrow account?
Explanation
Florida law (FREC Rule 61J2-14.010) requires a broker to deposit earnest money into the escrow account no later than the end of the third business day following receipt of the funds (not execution of the contract).
Q6. When a Florida escrow dispute arises and the broker cannot determine to whom the funds belong, the broker may:
Explanation
When a Florida escrow dispute cannot be resolved, the broker may: (1) request an Escrow Disbursement Order (EDO) from FREC, (2) initiate mediation, (3) initiate arbitration, or (4) file an interpleader action in court. The EDO is a common first step.
Q7. A Florida title insurance policy issued at closing protects against which of the following?
Explanation
Title insurance protects against losses arising from defects in title that existed BEFORE the policy was issued — such as unknown liens, forged deeds, errors in public records, undisclosed heirs, or prior fraud. It does not cover future events.
Q8. In Florida, a 'warranty deed' provides which guarantee from the seller to the buyer?
Explanation
A General Warranty Deed provides the broadest protection — the grantor (seller) warrants title against all claims, not just those arising during the grantor's ownership, but extending back through the entire chain of title.
Q9. A Florida 'special warranty deed' (limited warranty deed) differs from a general warranty deed because the seller only warrants title against:
Explanation
A special warranty deed (also called a limited warranty deed) limits the seller's warranty to claims arising only during their own period of ownership. The seller makes no warranties against claims predating their ownership.
Q10. In a Florida closing, who typically pays for the owner's title insurance policy?
Explanation
In Florida, who pays for the owner's title insurance policy depends on the contract and local county custom. In many South Florida counties (Miami-Dade, Broward, Palm Beach), the buyer pays. In other areas, the seller traditionally pays.
Q11. A Florida property is sold with a lien for unpaid homeowner association (HOA) dues. After closing, who is responsible for the unpaid dues?
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