Am I paying too much in Title Insurance Costs - Kansas location?
I have recently sold my house and closing is near. The title company was selected by the agent. The title company wants me (the seller) to pay $850 for a "Owner's title policy" and $150 in closing costs. They buyer has to pay $225 for a "Title Policy". I assume the buyer's policy is the "Lender title policy". I understand this buyer/seller split is normal for Kansas. However, The $850 seems high to me when there have been several title searches on this property already with refinancing. Is there anyway to determine how these rates compare to what other title companies would charge. Is there a website that quote competitve rates....like what you would find for car/life/home insurance. Thanks in advance.
Public Comments
- You don't have to use the company selected by your agent. Buying title insurance is not that much different from buying other kinds of insurance. There are different rates at different companies. I don't think they are online, but look up the phone numbers in the yellow pages and call around. You don't need to make 50 phone calls. After two or three, you will have an idea whether this company is in the ballpark. BTW, is the title company also doing the settlement? I usually advise people not to go that route. It is better to have an experienced lawyer who is working for *you* rather than a title company who is supposed to be neutral. Sometimes, when you get to the settlement table, problems arise that you never anticipated. It's nice to know who is working on your behalf if that happens. Not the agent--she wants her commission. Not the title company; as I said, they're supposed to be neutral. So think about going to a lawyer. Good luck!!
- Virtually every home I've ever bought, the title insurance was 1% of the sales price of the property. But shop around; you're free to use any title company of your choice.
- A comment about obtaining an attorney to close your deal here...MOST Title Companies are owned by Attorneys. They are legally responsible for any errors, except typographical which you agree to work out with them. An attorney is an additinal fee that you don't need. Also, the Broker of the Real Estate Company is also responsible for any errors. and try to sue a lawyer for a mistake! I know this is off your question, but I had to comment...Call around for better rates, you'll find them, and let them know you have a previous policy, that will cut your rate, too.
- You might check with your state insurance board. In Texas the rates for Title Insurance are state regulated. It may be that way in your state as well. If so, the rates should be the same no matter which Title Insurance Company issues the policy. The price of the police is determined by the price of the property. And, you are correct on the buyer's portion of the Title Insurance fee. He is buying a policy to protect the lender--it's a lender requirement, thus a buyer expense at closing. Check this out: http://www.titleonecorp.com/titleinsurance.asp
