Title Fees

Title fees consist of several factors:

  • Title insurance: Title insurance is an important coverage to purchase since it covers you — and your lender — in the event the seller doesn’t (or previous sellers didn’t) have clear ownership of the home or if the title isn’t clean. When you have title insurance, a title company will search public records to help determine if there are any ownership issues — and help resolve them. If anything is missed during their research, you’ll be covered.
  • Loan policy of title insurance: If you’ve taken out a mortgage loan to purchase your property, your lender will require a loan policy of title insurance — also known as lender’s title insurance — to protect their investment until the loan is paid off. This way in case your home is lost to a title claim, your lender is protected.
  • Owner’s policy of title insurance: On the flip side, an owner’s policy of title insurance — or homeowner’s title insurance — is what protects your ownership rights to the property. It’s usually a one-time fee that lasts as long as you own your home. It protects your investment against things like forgery, undisclosed heirs, errors or omissions in deeds and mistakes in examining records. Basically, this provides peace of mind that, should a title problem arise after you’ve already bought your home, your title insurance company will step in to help out both monetarily and legally if needed.
  • Notary fees: You’ll need to notarize your mortgage deed of trust, which costs around $10.
  • Government filing fees: Part of becoming a certified homeowner means officially recording the ownership of your new home as well as transferring taxes and other documents to your name. You’ll file your property and loan information at your local county courthouse for a fee — usually dependent on the number of pages you’re filing.
  • Escrow fee/Settlement fee/Closing fee: You’ll have an escrow company who helps handle all the funds involved in the home-buying process. The title closing escrow fee is based on your loan amount and/or purchase price of the home. You’ll pay a fee to the escrow agent who helps you close.
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