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Posts Tagged ‘Title’

Title Insurance Fees

J. Andrew English J. Andrew English
Wednesday, August 20th, 2008


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.

Title insurance in New Mexico

Donald L. Plunkett, Jr. Donald L. Plunkett, Jr.
Wednesday, January 23rd, 2008


There will be no relief from high cost title insurance for New Mexico homeowners this year. The Albuquerque Tribune is reporting that Gov. Richardson will not put the issue on the legislature’s agenda this year, but will focus on health care.

In states like New Mexico and Texas, the cost of title insurance is regulated. Everyone charges the same thing, and discounts are not available for properties purchased within the last two years, developer policies, re-financing, etc. The costs are set very high compared to other states and compared to what is actually paid out. One ALTA study in 2003 showed that nationwide only 4.3% of what was actually charges was paid out in claims.

Many homeowners do not realize that after the real estate commissions, the title insurance policies are the second most expensive item typically found on a closing statement, and the one that increases proportionate to the price of the home and the amount financed.With increased transaction costs, you create a disincentive to sell or re-finance your property.So in the end, the title insurance might actually benefit from making less money per transaction across more transactions.

Title companies in New Mexico should be allowed to compete on price, just like real estate brokers.