The Real Estate Encyclopedia
How Is Title Insurance Priced?
Category - Home Buying Questions - Buying Legal & Closing FAQ's

Title insurance is typically priced at 0.5% of the purchase price. Title insurance rates vary from state to state and market to market. In some states, the fees are set by the AGENT, and are market competitive - they may be negotiated by the Agent. In other states, the rates are regulated by the state's Department of Insurance and the fees may not be negotiated - higher or lower than the regulated fees. In both cases, the premium fees are calculated on a per $1,000 rate. That rate is then based on whether the transaction is a "basic" rate, "re-issue" rate, "refinance" rate or "new construction" rate.

 

Basic rate covers a policy issued on a purchase transaction and calculated on the purchase price and the mortgage Amount. Re-Issue rates cover a policy issued on a purchase transaction and whether or not the seller can provide back title to the buyer. The back title criteria is usually based on how old the seller Owner's Policy is. (Usually a lower per $1,000 rate than basic)

 

Refinance rates cover a policy issued to the current owner on a mortgage loan. Depending on the state, the previous mortgage amount may influence how the rate is calculated.  New construction rates cover the builder during the construction of the property, before the construction is complete. New construction rates do NOT cover a buyer purchasing a completed home from the builder, only the time the home is BEING constructed and covering the builder.

 
Category(s)
Home Ownership Questions - Home Insurance FAQ's
Home Buying Questions - Buying Legal & Closing FAQ's
Home Buying Questions - General Home Buying FAQ's
Home Buying Questions - Insurances & Taxes FAQ's
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