What Does Title Insurance Cost?

USA real estate fees
What Does Title Insurance Cost?
Many people donБt fully understand why it is necessary to purchase title insurance on a home in Utah County. БTitleБ in real estate terms means that you are paying for the right to occupy and use your property or land. Part of the price paid for title will be for the improvement, or the actual home, but the major cost of most property is the land itself. It is important to understand this, because the title may be restricted by rights and claims of others; this could in turn limit your use and enjoyment of the property and even bring financial loss. Claims against homes, land and titles do happen in Utah County.
I have sold over 1,000 homes in Utah County and would estimate that legitimate claims appear on less than 1% of the transactions. The problems that have occured have been related to mechanics liens after the closing. This is where a sub-contractor worked on the home less than 90 days ago and has not been paid. My client was happy to have insurance when a claim was made against their home.
Title insurance protects you from someone making a claim to your Utah County home or land after you own it. This is very rare but sometimes happens. While most insurance premiums are charged annually and protect you from future problems, title insurance is a one time charge because it protects you from claims that have already happened. Title insurance companies therefore have every incentive to make sure the risk is minimal.
The role of title insurance is to elimination risk prior to issuance of coverage for both the buyer and the title company. A claim or loss is a losing situation for all involved and every attempt is made to eliminate this possibility early on. Therefore, the title company will begin researching the history of the title with public records. An agent for the title company investigates the title chain to determine if any Бmaterial objectionsБ exist.
Material objections are the results of earlier documents that did not transfer the title clearly. I think title insurance is way too expensive. I have probably helped facititate the title companies being paid several million dollars in insurance policies since 1995. It is state law and required by a lender before closing to have a title policy in place.
Basically, the buyer and seller dont have a choice about the matter. It is necessary and need to have title insurance.
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