If you buy a home without an agent or with a discount agent, how do you shop for title insurance?

Question

Even if you work with full-commission (3%) agents, they just work with their favorite title insurance companies. They don't comparison shop the best deal for you.

How do you find out the quality of service of a title insurance company? How do you find out all the fees that the title insurance will cost you?

Title insurance is to ensure that your home has a free and clear title and no one has a lien or a claim on it. It's critical and requires professional expertise. You don't want to do it yourself, and cannot afford to be self-insured. You don't want to find out by surprise that your home isn't yours after you've paid your down payment and all the closing costs. Title insurance ensures that this never happens, assuming that the insurance company does its job.

Is anyone familiar with the California laws? Is it always the seller's agent who chooses the title insurance company? Do the laws require that all title insurance companies do pretty much the same things to check the title?

Answer 1

title insurance is cut and dry so to speak,

im going thru a large claim on mine right now,
they are really terrible to deal with.
they all have to provide the same coverage, and service as required by the state,
the fees they charge are usually state regulated also, they all charge the state regulated amount, ( like Gap insurance for a car ) its always the same for everyone.
a trip to the register of deeds will save you the money, ( I wish I would have )
if its not on the record the title insurance wont cover it anyway.

I had an easement the title insurance didnt find, and now the easement holder came in and is doing as he wishes all over our property, tearing down trees, removing a building,

It was on record at the court house, and the title insurance still dosen't want to pay.

Answer 2

This answer is more for the people that say "Oh who care" or something of that nature. These are probably the same people that Bit## and complain that the realtor makes too much.... Well you can't have it both ways. A realtor deserve's what they make because they can spend time with a buyer or seller and never make a dime. So when you average it out they aren't making as much as you think. And for some of you bone heads who think that most agents get a full 3%....uh, yeah no! They have to split it with their broker and a lot of agents are a team of two where they split it again. Then they have run expenses through their commissions, gas, computers, cameras, desk rent, MLS, realtor fees, self employment taxes...after a while the money that started out isn't there anymore. Anyways, back to your question.... Just tell the guy the circumstances and he'll be miffed a bit, but hey, it's a learning experience, he should never show houses without an exclusive buyer's broker agreement. Congrats on the house though.

Answer 3

I enjoyed reading the answers you've received so far, because it shows how different real estate is in different states. In Texas, the cost of title insurance is set. The title companies actually do the closings, and the fees they charge for that service do vary a little bit - could be $225 per side (buyer/seller) on up to about $250 per side. Then there are other incidental fees such as courier fees, filing fees, tax servicing, etc. Some companies will just lump it all together and charge $300 per side.

As a Realtor, (and in San Antonio, it's usually the listing agent who chooses the title company) I find that SERVICE is the number one deciding factor. Who is willing to accommodate my client time wise, timeliness of returning phone calls, willingness to explain things to my client and ultimately help to achieve a closing which is on time, and fairly painless.

Do go with a title company that's in the county the house is in. Last thing - in Texas, title insurance is just about 1% of the sales price and in San Antonio is typically a seller's expense.

Answer 4

Call your closest title company. I did this once. It was cheap. You don't need an agent, title officer of a bank, discount agency or an attorney. If you are paying cash, buying from a friend or family member with a private loan or just transferring title, you don't need an escrow agent unless you are going to have a bank loan.

Answer 5

Title insurance is provided by title company. And your loan officer and your lawyer suggest a title company for you, not a real estate agent. You can shop around for title companies, however usually lawyers work with the same title companies, because they receive a kick back for bringing customers. Talk to your lawyer and your loan officer before you accept their services about this.

Answer 6

generally people just get their title insurance thru their lawyer. it is a bit of a rip off in terms of very high commissions are included in the premium rate, but think you end up paying it no matter who you get it from. Service shouldn't be a big deal, it is really for peace of mind you at most will end up having 1 claim and hopefully none. Your lawyer should be able to explain the very limited number of types out there and all real estate lawyers have relationships with a few companies

Answer 7

Get on the net and inquire of several Title companies, ask what their fee is, ask what is included in that service fee, ask for letters of re feral, ask what their title tracing procedure includes and make sure they are insured if its a small company [which is where you will get the least expensive service] Research the Title laws in your area, very simple with all the Revised Statutes of every State at your fingertips. It's all out there just get started. You are your own best assurance!

Answer 8

Ask your escrow officer/ closing agent for the names and numbers of Title Company sales reps. In my experience, the fees differ little from company to company, but don't let that stop you. In this market you may get a deal. After you speak to the rep, call the title officer to get a break down of the fees. There are few surprises in title fees. If the title company fails to do its job, they can be sued for the damages so they are careful about doing it.

Answer 9

Title insurance isn't something you can "shop out". It's going to cost you a small percentage of the purchase price of the house, depends on what STATE the house is in. It's usually 2% to 4%.

So just use whichever title insurance company your closing company wants to use.

Answer 10

That could be a very good question for your bank, they will probably have a few suggestions anyway, they will need to know before closing. Also, in some cases if you need a title companies services in the future, it won't cost as much the second or third time, e.g. buy more properties.