skip to main content

Buying and Selling Homes

cost of title insurance

margaret_garfield

17 years ago

We are about to sign a sale agreement with my brother-in-law (I know, not my idea!), and it says we will pay for the title insurance. I don't like to sign a blank check like that. How much does title insurance cost? We are in Washington State and the sale price is $195,000. The title company listed is Chicago Title; shouldn't we get to pick the company because we are paying for it?

Margaret

Sort by:Oldest

Comments (4)

finesse
17 years ago
In many states title insurance is the same no matter who you deal with. What can differ is the fees. See link below for a calculator.

Good luck,

Kevin

Here is a link that might be useful: Title Insurance Calculator
dave_donhoff
17 years ago
Hi Margaret,

We are about to sign a sale agreement with my brother-in-law (I know, not my idea!), and it says we will pay for the title insurance. I don't like to sign a blank check like that. How much does title insurance cost? We are in Washington State and the sale price is $195,000. The title company listed is Chicago Title;

Here's the Chicago Title site page explaining what Title Insurance is (not that you asked that...)
https://www.ctic.com/title_insurance.asp

Here's how to find a WA office;
https://www.ctic.com/operations.asp?State=WA

You'll generally find Title agents about as kind & polite as Martha Stewart (when talking to her audience... not her employees or attorneys ;~)

shouldn't we get to pick the company because we are paying for it?

LEGALLY, no buyer can be forced by a seller to use a particular 3rd party service provider.

TRADITIONALLY (in the real world,) sellers (and their agents) almost always pre-select the Title provider and itemize it in the purchase & sale contract.

Title insurance policies (as with most other insurance policies) are price-regulated by the state Insurance Commissioner, and are pretty uniform from company to company. A Title company's real profits come from the ancillary support services.... the preliminary search fees (not so much an issue in our state of WA, but particularly in Eastern states,) signing services, escrow (bookkeeping/dispersion) services, etc.

Hope that's helpful!
Dave Donhoff
Strategic Equity & Mortgage Planner
Related Discussions
Refinance question
Q
Comments (5)
I would advise you to purchase Title Ins. It protects you down the road if the closing attorney is sloppy and does not complete the necessary filing of documents. I say this because we had an issue which almost delayed our closing. We discovered the error 22 years later. We did not have Title Insurance, but did have a signed document from the attorney guaranteeing a 50 year clear title. That was a relief, getting the old paperwork filed was another story. We had to have proceeds held from the sale until the work was completed. My current attorney ended up filing the paperwork that was not done 22 years ago. The previous attorney did pay for the filing fee, but we paid the price for his error until it was cleared. You always need to protect yourself. As you can see things can surface unexpectedly years later.
...See More
Title Insurance and other Seller closing costs
Q
Comments (9)
Just a vent here - I have been really tempted by this one house, so I went out to USAA's website to try to figure out the whole mortgage thing - so confusing! If a point is usually 1% of 100,000 - then how come they list variations on the point amounts for the same loan amount? I could go on about how baffled I was. I called and basically got the apply on line for pre-approval, then its 350.00 when the loan goes through. Now others on this board have said you should be able to get all the numbers up front to really study first - but both my credit union and USAA have you apply (50.00 for the C.U.) first and my impression is they don't get into how much anything really is till the very end - so how the H*** do you compare? Or even figure out which loan is best for you?
...See More
Who pays for title insurance?
Q
Comments (21)
The other weakness of many title insurance policies is the payoff is limited to the value when the policy was issued. You purchase a house for $200,000. The lender policy covers the mortgage of $160,000. The owners policy covers the remaining $40,000. Ten years later the property is worth $300,000. A title problem arises. The title insurance company is on the hook for the the mortgage balance after 10 years, and the additional $40,000 owners policy. Add to that legal costs of defending the title, and they may just pay off. You get $40,000, the lender gets the mortgage balance, and you no longer own anything. Tough luck about the increase in value. Here is your $40,000. Go find another house. There are title policies that increase the payoff, but like everything else they cost more for the additional risk.
...See More
Typical closing costs with farmland (cash sale)?
Q
Comments (7)
Title company or attorney - either one. The attorney usually has a title underwriter. You want this deal done right, I assume with a properly recorded deed. There are fees to transfer the property - paid to the county even if you decide to not transfer through an attorney or title company. I can't imagine not wanting to go through an attorney or title co, the savings is minimal and you can push those costs over to the buyer if that is what you want to do. Your contract would have to reflect that the buyer pays those fees. BTW, I have seen deeds transferred without the benefit of a title co or an attorney and there is usually a issue with the transfer. Can show up right away or years down the road. It is not recommended that you transfer without an attorney OR a title company (less expensive usually), but it can be done. Very risky for the buyer.
...See More
rrah
17 years ago
Just an additional bit of info to follow up on one of Dave's comments. In this area the seller traditionally chooses the title company because the seller typically pays for the buyer's title insurance (the more costly policy.) The buyer in turn pays for a second, less expensive (about 150) policy for the lender. Most buyer's choose to use the seller's title company because here they would pay much more than 150 for the mortgage policy from a different company.
berniek
17 years ago
"LEGALLY, no buyer can be forced by a seller to use a particular 3rd party service provider. "
That's correct if they want to pay for it themselves.

Related Stories

MOVING 5 Risks in Buying a Short-Sale Home — and How to Handle Them

By Christine Tusher

Don’t let the lure of a great deal blind you to the hidden costs and issues in snagging a short-sale property

MOVING The All-in-One-Place Guide to Selling Your Home and Moving

By Laura Gaskill

Stay organized with this advice on what to do when you change homes

MOVING How to Avoid Paying Too Much for a House

By Christine Tusher

Use the power of comps to gauge a home’s affordability and submit the right bid

MOST POPULAR How to Create an Inventory, Whether You're Naturally Organized or Not

By Alison Hodgson

Documenting your home items is essential, even if disaster seems unimaginable. And it may be easier than you think

DECORATING GUIDES California Law: License to Practice Interior Design?

A proposed bill that would require a license to practice interior design in California has Houzzers talking. Where do you stand?

LIFE 7 Tips to Get With a New Minimalist Mentality

By Alison Hodgson

Feeling overwhelmed by your stuff? Here's how to pare down, simplify and keep just what you need and love at home

HOUZZ TOURS My Houzz: Salvage Finds and DIY Love in Rhode Island

By Rikki Snyder

A Providence couple layers on meaningful mementos and hands-on style for a personalized interior palette

MOST POPULAR 9 Real Ways You Can Help After a House Fire

By Alison Hodgson

Suggestions from someone who lost her home to fire — and experienced the staggering generosity of community

WORKING WITH PROS 5 Steps to Help You Hire the Right Contractor

By Dylan Chappell Architects

Don't take chances on this all-important team member. Find the best general contractor for your remodel or new build by heeding this advice

MATERIALS Insulation Basics: What to Know About Spray Foam

By Mariana Pickering (Emu Building Science)

Learn what exactly spray foam is, the pros and cons of using it and why you shouldn’t mess around with installation

Sponsored

AAE Bathroom Remodeler

Franklin County's Custom Kitchen & Bath Designs for Everyday Living

More Discussions

Will this kitchen reno ideawork or will it just look and feel awkward?

8

Color Suggestions for Railings, Deck and Roof

7

Currently have single sink and built in vanity in Master ensuite.

25

Do I need an agent if someone's interested in my unlisted house?

16

remodel kitchen advice.

6