Title insurance is provided in two basic forms, Owner’s Policies and Lender’s Policies. As the names imply, Owner’s Policies are intended to protect the interests of the owner of the property while the Lender’s Policy protects the lender’s interest only. For more information on the differences, see WHAT IS TITLE INSURANCE. The rates for an Owner’s Policy are calculated based upon the purchase price of the property and are as follows:
|Up to $150,000.00 of liability*||$5.75 per thousand|
|$150,000.00 up to $250,000.00;||$ 862.50, plus||$4.50 per thousand|
|$250,000.00 up to $500,000.00;||$1,312.50 plus||$3.50 per thousand|
|$500,000.00 up to $10,000,000.00;||$2,187.50 plus||$2.75 per thousand|
|*Minimum of $175.00|
Lender’s Policies are required by most lenders today. The rates are based upon the loan amount and are as follows:
|Up to $150,000.00 of liability*||$4.00 per thousand|
|$150,000.00 up to $250,000.00;||$ 600.00, plus||$3.25 per thousand|
|$250,000.00 up to $500,000.00;||$ 925.00, plus||$2.50 per thousand|
|$500,000.00 up to $10,000,000.00;||$1,550.00, plus||$2.25 per thousand|
|*Minimum of $125.00|
However, if an Owner’s Policy is purchased, the Lender’s Policy, which will be required by the lender, can be issued for a flat charge of $100.00! Therefore, if you are purchasing a new home and obtaining financing to assist you in the purchase, ordering an Owner’s Policy along with the required Lender’s Policy can result in substantial savings.
The purchaser will also be required to pay for a title examination upon which the policy will be based. The typical charge for such an examination will be between $175 and $225. Generally, there will also be a charge for a binder or commitment. This document is supplied to the owner or lender prior to closing outlining what matters affect the title to the property at the time of closing. The charge for the binder is typically between $50 and $100.
Finally, title companies charge for closing a transaction. These charges vary somewhat but typically will be in the range of $175 to $225.