THE CLOSING GUIDE / Blog
October 25, 2016
George Holler Talks Title Insurance on CNBC
Although title insurance is an essential part of purchasing any property, many American home shoppers are still uninformed.
Title Insurance Explained
Title insurance, basically, adds a layer of protection to cover losses that would result if a problem is discovered with the title to the property. For instance, if a long-lost relative of the seller appears and contests the seller’s right to sell the home, title insurance policies would protect both the buyer and the lender from losses.
How Much Does it Cost?
Unlike most kinds of insurance, the premium for title insurance coverage is paid once, up front. Generally, the cost of a title search (to uncover any defects or issues with the title) are added to this fee. Because individual states regulate title insurance, the rates paid vary depending on where you live. For a hypothetical $450,000 home purchase in Milford, CT – where Holler Law Firm is located – the fees would looks something like this:
- Attorney fee: $650
- Title search: $175
- Title insurance: $1,608
Who Sells Title Insurance?
States also determine who can sell title coverage. Many states have title insurance companies that sell title insurance and perform title searches, but Connecticut and several other attorney-only states (CT, MA, GA, NC, SC, DE, and WV) only permit attorneys to sell coverage. “In southern New Jersey, you go to a title company, and they’ll do everything,” said our very own George Holler in a recent CNBC article about title insurance. “In northern New Jersey, you’ll go to your lawyer, and they’ll usually have an ownership interest in the title company.’” Though many buyers and sellers aren’t affected by the attorney-only rule, it can prove to be a complicated obstacle for lenders and title insurance companies that transact at the national level.
Streamline Your Closings
Holler Law Firm is a Milford-based law firm that services national title agencies in Attorney-Only States. We help our clients maintain control of their transactions and avoid unnecessary costs and delays at all times. For more information on our services, please visit our homepage today.
Photo courtesy of 360b / Shutterstock.com
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