Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I was wondering why it was so expensive. I thought maybe the OP was buying a $2 million home. If the state dictates the insurance price, it becomes clear.
The price of the (NOT required by law per the state) insurance is based on the price of the home. Here's the chart showing what it is right now for an owner's policy. So for a $250,000 house, for example, the title policy would be $1,706 no matter what title company is used. There are other charges for handling the closing by title company, but what is really important is how well the title commitment/closing are handled. Real estate agents deal with a lot of title companies/escrow officers and generally know which ones will help the transaction go smoothly and notify promptly of any potential problems (and get them fixed) and which won't.
^ Thanks and agreed. The more I thought about it was the price of doing business and for a smooth closing. Could have maybe shopped around, just didn't have the time and other Title firms might have had the same policy. I feel better having the protection but still a little peeved we can have title issues in this modern era.
SELLER is protected, in the case a hidden defect to the title, they will not end up in a law suite that can break them in the future. The title insurance company would take care of everything.
BUYER is protected, in case a title problem comes up in the future, they are protected as the title insurance will solve the problem.
This is what I was taught in real estate law classes at a major university.
I spent from 1972 until I retired, as an investment real estate broker. I never had a title problem
with any of my transactions, but knew of several real estate sales both the buyer and seller were glad 1 to 5 years after a sale a title insurance policy was there to protect them.
Normally the seller buys the pollicy guaranteeing their trasfere of title, and if there is a loan, the buyer buys the lenders protection policy.
Any one that buys or sells a property that does not buy a policy, is taking a huge risk, and can loose everything they own, if a hidden claim comes up, according to my old professor, who was a top real estate attorney.
For those that say have an attorney do the paperwork, need to realize the attorney does not guarantee the title in case a hidden claim surfaces at a later date.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
