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Old 05-26-2011, 10:33 AM
 
1,401 posts, read 3,024,740 times
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Getting confused with all of the terms in closing costs.

The buyer one is required by the state? The lender's one is 1.5X the buyers one.
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Old 05-26-2011, 11:36 AM
 
364 posts, read 763,634 times
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Quote:
Originally Posted by sonofagunk View Post
Getting confused with all of the terms in closing costs.

The buyer one is required by the state? The lender's one is 1.5X the buyers one.
There is one title insurance.

Buyer can buy from the lender or third party. However, the price is regulated by NJ law, so there should not be significant differences.
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Old 05-26-2011, 12:16 PM
 
Location: Northern NJ
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That's not accurate.

One type of policy form is issued to the lender, one type to the buyer. Both are sold by title agencies on behalf of title insurance companies. Neither are required by the state, but the state does fix the rates in NJ, unlike some other states where rates are competitive. Some lenders own their own title agencies. However, it is the buyer's choice, and a violation of Federal law to require that it be purchased from any specific agency.

Wikipedia
has a good overview of this and other issues related to title insurance in the US.

Rhys
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Old 05-26-2011, 12:26 PM
 
1,401 posts, read 3,024,740 times
Reputation: 890
Quote:
Originally Posted by RhysNJ View Post
That's not accurate.

One type of policy form is issued to the lender, one type to the buyer. Both are sold by title agencies on behalf of title insurance companies. Neither are required by the state, but the state does fix the rates in NJ, unlike some other states where rates are competitive. Some lenders own their own title agencies. However, it is the buyer's choice, and a violation of Federal law to require that it be purchased from any specific agency.

Wikipedia
has a good overview of this and other issues related to title insurance in the US.

Rhys
I just do not understand why both are "needed" on my closing costs. The buyer's one is the price that the state set, the lender's one is buyer's*1.5
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