How to Save Money in a Title Company Cost
Title companies provide services and title products to buyers, sellers, borrowers and lenders of real estate. Title companies issue title insurance policies, handle closings, record documents and conduct title searches. You might work directly with a title company or indirectly through your real estate agent or lender. The company charges a fee for its services, but with a little foresight and planning, you can save money on some of these costs.
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Instructions
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Get a simultaneous issue rate by ordering both an owner's and a lender's title insurance policy in the same transaction. In some states, the owner's policy premium is calculated on a rate schedule tied to the sales price and the simultaneously issued lender's policy is issued for a much lower flat fee. Other states might calculate the lender's policy premium first and then charge an additional premium for the owner's policy. Either way, if you are signing a mortgage to finance your purchase, coordinate your title insurance order with the lender's order and ask if you can receive the simultaneous issue rate.
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Find out whether you qualify for a reissue rate on your title insurance policy. A reissue rate, which is reduced from the usual premium, may be given if you are able to produce a copy of an existing title insurance policy. For example, if you are buying a house, ask the sellers to provide a copy of the title insurance policy they received when they purchased the house. Supply the policy at the time you place your order for title insurance. Practices vary as to whether the company will provide a reissue rate based on a policy issued by a competitor, but it is worth checking.
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Provide the title company with information you may have about the property's title. In some regions, title companies require an abstract of title which will be examined by an attorney. An abstract is a summary of every document that has been recorded in the county recorder's office for the property. If the seller has an abstract, provide it to the title company for updating. Updating an existing abstract is less expensive than the cost of creating a new abstract. Some title companies require a title search, which lists information about the property such as deeds, liens and taxes. For this, they send an employee to the courthouse to research documents pertaining to the property. If sellers are able to provide a copy of their existing owner's title insurance policy to the company, this can reduce the amount of research the company needs to do at the courthouse and possibly save money,
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Comparison shop for closing fees among title companies in your area. Companies compete for business, and you might discover lower rates on some unregulated services. A title company might negotiate closing fees for a large commercial transaction or for a repeat customer, although fees in residential transactions are likely to be non-negotiable. Obtain quotes from the title companies and ask questions about fees you don't understand.
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Eliminate unexpected delays and expenses by taking care of title problems in advance of the sale. For example, if a seller or buyer owes someone a money from a judgment, this might cause a delay in the closing. To avoid this, they might consider paying the judgment or asking an attorney for advice on other ways to resolve the problem. Further, give the title closer adequate time to obtain documents and signatures to avoid incurring high overnight or priority mailing expenses. For example, if the sellers have moved away and documents need to be mailed to them for signing, allow extra time for this.
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References
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