Title Company Fees and Costs – The Main Points You Need to Know About
Understanding and finding out as much as possible about title insurance and title company fees can mean the difference between success and ruin. While superior companies often charge a little extra, their additional services, improved professionalism and better transparency will often be worth the added cost. However, before going into all that, it’s important to learn about the standard cost of title insurance and how much title companies might charge for the various services that they provide.
Is Title Insurance Expensive?
Until you’re actually in the process of buying a home or a commercial real estate property, you won’t fully realize the value of good title insurance and why the title company costs you pay are virtually nothing next to the peace of mind that they can give you. Fortunately, good title insurance is rarely that expensive. The typical costs involved will of course differ based on the price of the property, the location, and based on whether you’re a buyer, seller or lender. Also, costs might differ from one company to the other, especially if some companies also offer additional services like escrow and closing services.
The Standard Fees of Title Insurance
Title company costs will be less expensive in areas where the price is unfixed and companies decide upon their premiums on their own. In the state of Iowa, the insurance is underwritten by the state itself, which results in some of the lowest premiums found anywhere – such as $110 for a $500k home. Other states like Texas require everyone to pay a fixed title insurance fee based on the price of the property they buy. If we’re talking average costs, you’ll find premiums will cost about $1,000 per property, however, the exact price of title insurance might be very different depending on your specific circumstances.
The Additional Cost of Accepting the Seller’s Title Company
The biggest risk is involved with paying more when accepting the seller’s title company. In most cases, this means the seller will be able to dictate how the title insurance process goes and what services will be provided. As a result, you might end up having to pay extra for additional services that you require but your seller doesn’t. Also, there were cases when buyers had to pay as much as an extra $1,500 for a simple extension on the closing date, and end up having it delayed since the seller is in no hurry to get it.
The Importance of Researching Your Company
As shown previously, title company fees can become hard to handle when you accept the seller’s title company. However, the same can be true when you don’t put a particular amount of effort into doing your research properly and finding the best title insurance company. In some cases, the fees can even be doubled due to the fact that the title company you find isn’t able to provide you with all the services you need, and you end up having to hire another company for the job or to pay extra for them to do a poor job of those tasks. In all cases, it has to be recognized that title insurance is a necessary and extremely relevant factor in every real estate transaction, and even if it means paying a few larger title company fees, it might be well worth it, if the result is that you’re being supported by the best title insurance company in town.