The cost of the title insurance is a variable cost
determined by the sale 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
. This is just an quick
estimate. Simple call a title company to get the exact
cost. The title companies charge additional fees listed
below at the closing table.
Buyers 1st Mortgage
| Closing Fee |
$140 |
| Doc Prep |
$50 |
| Overnight Fee |
$30 |
| Incoming Wire Fee |
$15 |
| Recorded W.D. & T.D. |
$70 |
| Title Insurance |
variable |
Buyer 2nd Mortgage
| Closing Fee |
$125 |
| Doc Prep |
$50 |
| Recorded T.D. |
$50 |
| Title Insurance |
Variable |
Seller
| Closing Fee |
$140 |
| Doc Prep |
$50 |
| Overnight Fee |
$25 |
| Recon Tracking Fee |
$85 |
| Title Insurance |
Variable |
Title Insurance is an Important Part of the Real
Estate Transaction
Many people don’t fully understand why it is
necessary. “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.
Title insurance protects you from someone making a
claim to your 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 have experienced a few title problems after
closing with my clients in Utah County. I have sold
900 homes a probably have had a problem on about 5.
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.
I think title insurance is way too expensive. I have
probably helped facititate the title companies being
paid around $2 million dollars in insurance policies
over the past 17 years. 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. The fees are now regulated
by the state of Utah. I have seen the title
companies pay out less than $10k on that $2 million
they received. The few times I have had a problem
the
title companies in
Utah County have been very reluctant to help
resolve the problem or pay a claim. This is just my
experience once someone makes a claim. I am sure
other people have had positive experiences.