AINS

Title insurance is a typical closing fee for the purchase of a property, building, or land parcel.

There are two types of policies, one is required if there is a mortgage and the other is optional. Both help ensure that there will be few, if any, title problems with the transfer of property.

While there are some parts of title insurance that do not change (such as it being due upon closing and it being a one-time premium payment instead of monthly), there are many aspects that have a wide variance of differentiation.

There are two types of policies, one is required if there is a mortgage and the other is optional. Both help ensure that there will be few, if any, title problems with the transfer of property.

While there are some parts of title insurance that do not change (such as it being due upon closing and it being a one-time premium payment instead of monthly), there are many aspects that have a wide variance of differentiation.

Each State Regulates Cost of Title Insurance
Every state in America regulates the cost of title insurance, even if the regulation is by not regulating. Another aspect that makes the insurance vary in cost is for the market competition in the area. You’re also going to pay more depending on the property value and the risk taken by the insuring party.

Title Licensing Varies
Besides cost and fees associated with title insurance, even the licensing can be regulated. While some states require strict guidelines to be followed by title agents and extensive licensing, some don’t. Georgia is an example of a state with no complete licensing process.

Charges for Premiums
States will vary in the rates they charge for premiums because some states regulate this while others do not. Georgia and Illinois are examples of states that have no premium regulation. Texas is an example of a state that regulates the cost of premiums. In states where there is title regulation, if the title agency charges more than the rate that has been regulated, it is a crime. This also is illegal for those agencies that charge less than that rate. Title insurance rates may be discounted as well. An example of a discounted rate is Pennsylvania, where there is a 10 percent discount if there has been 10 or more years since the last policy.

Regulation of Service Fees
Some service fees are not included in this regulated charge for premiums. When they are not included, the people insuring may charge fees for public records search, abstract fees, or fees for title examination. Another example of fees that are not regulated in many states include the charge for closing a mortgage sale.

Title companies have educated title agents who are able to answer any of your questions. If you have specific questions on what is or is not regulated by state laws, contact a title agent for answers.

Laws and regulations vary immensely in regards to who purchases the policies, how the cost is regulated, what is needed, and what to expect.

Proper knowledge prior to the title search can help cut through some of the red tape, saving you money when all is said and done.

Photo credit: greenescrow.biz