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Title Insurance Fees

J. Andrew English J. Andrew English


The article above is an interesting read for those interested in Respa and the relationship between Title Insurance, Loan Fees, and so forth. The idea that title insurance and other title fees can be set by the state continues to baffle me. In certain areas, title insurance rates are set by the government. Title companies may not compete with each other on price, only service. As a result, this is why Realtors(R) get bombarded with little gifts from title officers trying to encourage Realtors(R) to push business their way. Another example is during Realtor(R) orientation. The local Association will actually allow Title Reps to come pitch their services to brand new Realtors(R). The problem is that the consumers are the ones paying for these fees set by the govt. (Not Realtors(R)) If Title companies had any interest in better serviving the consumer they would market to the consumer and stop preying on Realtors(R) for business. Secondly, Title Fees should be negotiable, just as Realtor(R) commissions. It only benefits the consumer to open up competition. I happen to think that a reduction in Title Fees would help produce a small jolt to the market. Title Insurance and Fees in many areas can exceed 1% of the purchase price. Furthermore, in states like Texas, you are forced to pay attorney doc fees in the amount of about $350 per side. Not only is the fee not negotiable, it’s completely useless. Lets stop nickel and diming buyers and sellers to death on title fees and we might see more people interested in getting back in the market.


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