Purchasing a home is the single largest investment most will make in their lifetime. That investment is protected by title insurance—the cost of which varies across the country. To determine title insurance policy premium costs in your area, the American Land Title Association (ALTA) recommends consulting with a local title company to get detailed information.
In order to make sure a homeowner has clear rights to a property, the title agent will review prior deeds or mortgages, divorce decrees, court judgments, delinquent taxes and child and spousal support payments, utility or other easements and more. This work is necessary to issue the insurance policy and often includes the cost of conducting a title search, examination, correcting errors, issuing the policy, and, frequently, the settlement or closing for consumers.
When comparing fees, it’s important to get detailed information about what services are included in a fee to help ensure equal comparisons. In some states, the seller pays for the owner’s title insurance policy. Some rates may or may not include other services provided by the title company, such as conducting the closing, preparing and notarizing documents and other services. When comparing one rate to another, be sure to get detailed information on what is included in that rate, so you are comparing equally.
Many choose to rely on their real estate agent or mortgage lender for a recommendation for a title company; however, it is important to remember that you have the right to shop for title insurance and to choose your own title agent or company, says the ALTA. There are many factors to consider when selecting a title insurance company, such as local expertise, service standards, market conduct and commitment to the community.