The Butler Rebate, specific to Florida, is a rebate of all or a portion of a title agent’s share of title insurance premiums. Typically, the rebate is 30% of the premium, and it can only be given to the party charged for the title insurance premium upon which the rebate is based.
Guidance for closers is that a Butler Rebate should be separately disclosed; preferably in Section H (“Other”) on page two, but it could also be disclosed on page three in the Summaries of Transactions tables. In Section H the amount of the rebate is disclosed as a negative number placed in the column of the party receiving the credit. The description can read “Butler rebate from (title agent/agency).”
When disclosed on page three, rebates to borrowers will be disclosed as a positive number on an available blank line in Section L (Paid Already by or on Behalf of Borrower at Closing) under “Other Credits” (“Butler rebate from title agent/agency”). Rebates to sellers will be similarly disclosed on a blank line in Section M (Due to Seller at Closing) above “Adjustments for Items Paid by Seller in Advance.”
Lodestar is able to include/quote the rebate a couple ways:
- We can add a discount selector for a specific setup. This comes in the form of a dropdown in the calculator input screen and would be present for every state.
- We can calculate the rebate in the backend. This would benefit setups that do not want the discount selector available, and/or only want the rebate for FL quotes to be applied to specific domains or circumstances.
Please reach out to firstname.lastname@example.org.