YOU ASK:

How much is title insurance and title search?

WE ANSWER:

The cost of title insurance and title search would be about 1% to 4% of the property value. This includes the service fees for the title search and examination as well as the insurance component.

  • Premium component of the fee

    These charges may or may not be regulated by the state. This depends on the state where the property is located. There are states that don't allow any changes in the premium - whether these are decreases or increases in the premium. There are also rates that allow for changes in the premium, as this is not regulated by the State insurance commission. Thus, premium rates may vary from state to state.

    One way of getting a cheaper premium rate for title insurance would be to get a discount. This is usually given for policies that cover a refinance of an earlier mortgage.

  • Service charges

    This will mainly cover the fees for the title search. The title search involves detailed research and examination of the records that relate to a specific property. This will help to make sure that there are no problems with the title.

If you want lower fees for the title search and title insurance, you can shop around. Of course, the closing agent will recommend their own title insurance company, but use your prerogative as a buyer to research and choose the title insurance company that will best suit your budget.

The title insurance is at a per $1,000 rate. You only pay the premium once and the policy remains effective up until the time you and your heirs retain an interest in the property.

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