Who Determines Title Insurance Rates And Fees?
and title searches. Are they regulated by the state or by the
individual title companies? Are these fees negotiable in any way?
Buyers and sellers often accept these charges without question,
accepting the fees as set forth by the title company or closing agent.
The answer is that title insurance fees are not all alike. The
fees may vary from state to state, and may not be set by law in every
state. In many states, each title company may set its own rates and
then will file those fees with the state insurance commissioner. Once
filed, those fees must be adhered to. In other states, there may be a
rate, called a "promulgated rate" which is the minimum amount set by
state law which a title company must charge for title insurance and
title searches, but the title company is allowed to charge a higher
rate, if it wants to.
Although this might sound confusing, the answer is to
question your title or closing agent at the beginning of your escrow as
to what the charge will be for title insurance. You might ask if your
closing agent is charging the lowest rate allowed by state law. You
might want to shop around for title insurance and closing fees. You may
find that the fees vary from title company to title company.
Even a small savings of $50 to $100 would be worth your time
and effort in shopping for the best title insurance rate. Since there
are many closing costs which are not negotiable and which you will be
required to pay for, any savings in these closing fees will be
appreciated when you have to submit your final check to close the
transaction. If you are the seller in the transaction and required to
pay for the title insurance, any savings would be reflected in the
amount of money you receive back with your sales proceeds.
Many title companies combine the title insurance premium
together with the closing, search and exam fees. This may be the
industry standard in your state. In the state of Florida, for example,
many title companies typically charge a fee of $730.00 for a home with
a purchase price of $131,000.
This fee includes the title premium, closing, search, and
exam fees. The rate goes up proportionally with the sales price. There
might be additional fees if any endorsements are required, which
generally run about $35.00 a piece. Your title company or closing agent
will be able to give you the exact fees they will be charging for your
title closing costs.
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