The Butler Rebate: How Florida Buyers and Sellers Can Legally Save on Title Insurance

Educational information from Atlantic Title Firm, a licensed Florida title agency. This article explains a feature of Florida title insurance law and is not legal or financial advice for any specific transaction.

Here's something most Florida buyers and sellers never hear: even though title insurance premiums in Florida are set by the state and are identical at every title company, there is a legal way to pay less out of pocket. It's called the Butler rebate, and it can save you anywhere from a couple hundred to well over a thousand dollars at the closing table. Yet most consumers — and plenty of agents — don't even know it exists.

This guide explains exactly what the Butler rebate is, where it came from, how much it can save, how it shows up at closing, and the rules that keep it legal. By the end, you'll know the right question to ask before you pick a title company.

What Is the Butler Rebate?

The Butler rebate is a legal refund of a portion of a title insurance agent's own commission back to the party who pays for the title insurance policy — the buyer or the seller. Florida law sets the title insurance premium, so the rate itself cannot be discounted. What can be returned to you is part of the agent's share of that premium, given back as a credit at closing.

In other words: the premium on paper stays the same, but the amount you actually net can be lower, because the title agent voluntarily hands back a slice of what they earn. Two agencies can charge the identical state-set premium and still leave you with very different final numbers.

Where It Came From: Chicago Title Insurance Co. v. Butler (2000)

The rebate is named after a landmark Florida Supreme Court decision. In Chicago Title Insurance Co. v. Butler, decided October 19, 2000, a businessman named S. Clark Butler challenged Florida's anti-rebate statutes — the laws that had prohibited title agents from sharing any part of the premium with consumers.

The Florida Supreme Court sided with Butler, affirming that those anti-rebate provisions were unconstitutional as applied. The result: a Florida title insurance agent or agency may legally rebate any portion of the agent's share of the premium to the person responsible for paying it. That ruling is still good law in Florida today, and the practice that grew out of it took the case's name — the "Butler rebate" (sometimes called the "Butler opinion" rebate).

Wait — Aren't Florida Title Insurance Rates Fixed?

They are, and understanding that is the key to understanding why the Butler rebate is even possible. Florida is a promulgated-rate state: the Florida Office of Insurance Regulation sets the title insurance premium, and every licensed title agency must charge the same premium for the same coverage. You cannot find a "cheaper rate" by calling around — the rate is the rate. (If you want to see the exact promulgated numbers for your price point, our Florida title insurance calculator runs them instantly, and our piece on how much title insurance costs in Florida breaks down the tiers.)

But that promulgated premium gets split. Of the total premium, roughly 70% goes to the title agent who does the work (the search, examination, closing, and policy issuance), and about 30% goes to the underwriter that financially backs the policy. The Butler decision says the agent is free to give back part of that 70% agent share. So the state-set rate is untouched — what changes is how much of the agent's own commission they choose to keep.

How Much Can the Butler Rebate Save You?

It depends on the title agency's policy, but Butler rebates commonly run from about 10% to over 30% of the total premium. Because the savings come out of the agent's 70% share, here's a realistic picture using Florida's promulgated owner's-policy premiums:

Illustrative only. The rebate amount and percentage are set by the individual title agency and come out of the agent's share of the promulgated premium. Ask your title company what rebate, if any, applies to your transaction.

How the Rebate Is Paid at Closing

A Butler rebate isn't a check that shows up weeks later — it's applied right on your closing statement (your Closing Disclosure or settlement statement), and it must be explicitly disclosed there. Depending on which side of the deal you're on:

• If you're the buyer: the rebate reduces your cash to close — you bring less money to the table.
• If you're the seller: the rebate increases your net proceeds — you walk away with more.

It typically appears as a credit on the closing statement so everyone — you, your lender, and the closing agent — can see it in writing. Transparency is part of what keeps the practice compliant.

The Rules: What's Allowed and What Isn't

The Butler rebate is legal, but it lives inside firm guardrails. Here's what keeps it on the right side of the line:

• Only to the party paying the premium. The rebate can go to the buyer or seller who actually pays for the policy — and no one else.
• Never to a referral source. A rebate or "thank you" paid to a Realtor, lender, or mortgage broker for sending business is an illegal kickback under the federal Real Estate Settlement Procedures Act (RESPA). Butler does not change that.
• Only the agent's share. The rebate comes out of the agent's portion of the premium — the underwriter's portion is untouchable.
• Primary title services must be performed. The agent has to actually do the core title work to earn (and therefore be able to rebate) their share.
• It must be disclosed. The rebate is shown on the closing statement, in writing, for the transaction.

Those rules are exactly why a title company that markets a Butler rebate to you, the consumer, is doing something legitimate — while a "rebate" funneled to an agent or broker would not be.

How to Ask for a Butler Rebate

Because you choose the title company in many Florida transactions (and as a for-sale-by-owner seller you almost always do), the Butler rebate is one of the few real levers you control on title costs. A few practical tips:

• Ask up front: "Do you offer a Butler rebate, and how much?" Get the answer before you commit.
• Confirm it will be shown on the Closing Disclosure so there are no surprises.
• Remember the rate is identical everywhere — so service, accuracy, and the rebate are what actually differ between agencies.
• Don't forget other legitimate savings, like the reissue rate on refinances and recent resales, which can stack with good service.

Is the Butler Rebate Worth It?

For most buyers and sellers, yes — it's free money you'd otherwise leave on the table. Because Florida's title premium is identical everywhere, the rebate is one of the only true cost differences between title companies. On a mid-priced Florida home it commonly returns several hundred dollars; on higher-value or commercial deals it can be well over a thousand. The only "catch" is that you have to choose a title company that offers it and ask — it is never automatic.

That said, price isn't the whole story. A rebate is only valuable if the closing actually goes smoothly. A rock-bottom rebate from an agency that blows your closing date or botches the title search can cost you far more than it saves. The smart move is to weigh the rebate alongside service, accuracy, and responsiveness.

Is the Butler Rebate Only in Florida?

The Butler rebate as such is a Florida concept — it takes its name from a Florida Supreme Court case and applies to Florida's promulgated-rate system. Other states handle title insurance pricing differently; some allow negotiated rates, others have their own rebate or discount rules. If your transaction is in Florida, the Butler rebate is the relevant savings mechanism, and it works hand-in-hand with other Florida-specific savings like the reissue rate.

See How Atlantic Title Firm Closes Across Florida

Same state-set rate, very different experience. Here's a quick look at how we handle title, escrow, and closings in all 67 Florida counties:

Frequently Asked Questions

What is the Butler rebate in Florida?

The Butler rebate is a legal refund of part of a title insurance agent's own commission back to the buyer or seller paying for the policy. Florida sets the title insurance premium, so the rate itself can't be discounted — but a 2000 Florida Supreme Court decision, Chicago Title Insurance Co. v. Butler, established that an agent may rebate a portion of the agent's share of the premium to the person paying for it. The savings appear as a credit on the closing statement.

Is the Butler rebate legal?

Yes. In Chicago Title Insurance Co. v. Butler (Fla. 2000), the Florida Supreme Court affirmed that the state's anti-rebate statutes were unconstitutional as applied, allowing a title agent to rebate any portion of the agent's share of the premium to the person paying for the policy. It's still valid Florida law. The rebate may only go to the party paying the premium — never to a Realtor, lender, or broker, which would violate RESPA.

How much can a Butler rebate save me?

It varies by agency, but rebates commonly range from about 10% to over 30% of the total premium. On a $400,000 home with an owner's policy premium of roughly $2,075, a 20% rebate puts about $415 back toward your closing. Because the rebate comes out of the agent's portion (about 70% of the promulgated rate), the exact amount depends on the agency's policy.

How is the Butler rebate paid at closing?

It's disclosed and applied on your closing statement (Closing Disclosure or settlement statement). For a buyer it reduces cash to close; for a seller it increases net proceeds. Florida requires it to be explicitly disclosed, typically shown as a credit.

Does the Butler rebate lower the state title insurance rate?

No. Florida title insurance premiums are promulgated rates set by the state and are identical at every licensed agency. The Butler rebate doesn't change the rate — it refunds part of the agent's own commission, which is why two agencies charging the same premium can deliver different net costs.

Can a title company give a Butler rebate to my Realtor or lender?

No. A Butler rebate may only go to the party actually paying the premium — the buyer or seller. Paying any portion to a Realtor, lender, mortgage broker, or other referral source would be an illegal kickback under the federal Real Estate Settlement Procedures Act (RESPA).

Is the Butler rebate only available in Florida?

The Butler rebate is a Florida concept, named after the Florida Supreme Court case Chicago Title Insurance Co. v. Butler and tied to Florida's promulgated (state-set) title insurance rates. Other states price title insurance differently and have their own rules. For a Florida closing, the Butler rebate is the relevant way a title agent can return part of their commission to you.

What is the "Butler opinion"?

"Butler opinion" is just another name for the same thing — it refers to the Florida Supreme Court's opinion in Chicago Title Insurance Co. v. Butler (2000), which is the legal basis for the rebate. When a title company advertises a "Butler opinion rebate," it means the same legal refund of part of the agent's premium share to the consumer.

Do I have to ask for the Butler rebate, or is it automatic?

You generally have to ask. The rebate is never required, and many title companies don't offer one at all. Before you choose a title company, ask directly whether they provide a Butler rebate, how much it is, and confirm it will be itemized on your Closing Disclosure.