The cost of the title insurance in Utah County
varies according to the sales price of your home. If you are
buying a home for cash, you don’t need to buy insurance to
insure a lending institution. However, the seller will
buy you a title insurance policy. This is part of the
agreement of the Utah approved Real Estate Purchase that
Realtors use. Here are the prices I was recently quoted. Some prices may slightly
vary depending on the title company you select. Please
ask us about reputable title companies in Utah County.
Title Insurance typically costs slightly more than half of one
percent of the
home's value. This is just an quick
estimate. Simply call a title company in Utah County to get the exact
cost. The title companies charge additional fees listed
below at the closing table. What does title insurance
cost?
Many people don’t fully understand why it is
necessary to purchase title insurance on a home in
Utah County. “Title” in real estate terms means that
you are paying for the right to occupy and use your
property or land. Part of the price paid for title
will be for the improvement, or the actual home, but
the major cost of most property is the land itself.
It is important to understand this, because the
title may be restricted by rights and claims of
others; this could in turn limit your use and
enjoyment of the property and even bring financial
loss.
Claims against homes, land and titles do happen in Utah
County. I have sold over 1,000 homes in Utah County and
would estimate that legitimate claims appear on less than 1%
of the transactions. The problems that have occured have
been related to mechanics liens after the closing. This is
where a sub-contractor worked on the home less than 90 days
ago and has not been paid. My client was happy to have
insurance when a claim was made against their home.
Title insurance protects you from someone making a
claim to your Utah County home or land after you own it. This is
very rare but sometimes happens. While most
insurance premiums are charged annually and protect
you from future problems, title insurance is a one
time charge because it protects you from claims that
have already happened.
Title insurance companies therefore have every
incentive to make sure the risk is minimal. The role
of title insurance is to elimination risk prior to
issuance of coverage for both the buyer and the
title company. A claim or loss is a losing situation
for all involved and every attempt is made to
eliminate this possibility early on. Therefore, the
title company will begin researching the history of
the title with public records.
An agent for the
title company investigates the title chain to
determine if any “material objections” exist.
Material objections are the results of earlier
documents that did not transfer the title clearly.
I think title insurance is way too expensive. I have
probably helped facititate the title companies being paid
several million dollars in insurance policies since 1995. It is state law and required
by a lender before closing to have a title policy in
place. Basically, the buyer and seller don't have a
choice about the matter. It is necessary and need to
have title insurance.
Search the Utah
County Title Company Directory
