Title
Title service fees are part of the closing costs you pay when getting a mortgage. When you purchase a home, you receive a document most often called a deed, which shows the seller transferred their legal ownership, or “title,” to the home to you. This is just a sample of fees.
Mortgage Title Fees
Title fees refer to many title-related expenses. The specific fees a buyer or seller pays depends on their individual circumstances and the details laid out in their purchase and sale agreement.
Title Search Fee
This is the examining public records regarding the property and determine the property’s owner. The search also reveals any claims or liens on the property and could uncover any claims the current owner is unaware of. The current owner typically pays this fee as part of their closing costs.
Title Settlement Fee
This covers the administrative costs of closing by the Title Company. Title companies may or may not list out the individual costs of the fee. The costs included in the title settlement fee generally cover escrow (handling of and disbursement of funds), survey and notary fees, deed prep fees and other fees associated with title search.
Lender’s Title Insurance
This protects the lender from any claims on the property. It only protects the lender, not the buyer. Even if the title company clears the title, something can still come up. Lender’s title insurance is usually required by your mortgage company.
Owner’s Title Insurance
Like lender’s title insurance above, the owner’s title insurance protects the owner from any claims or liens on the title that the title company missed up to the purchase price of the property. Unlike lender’s title insurance, owner’s title insurance is not required, though it is recommended. It’s extra security at a much smaller price than if an unknown claim shows up on your title down the line.
Lydia Buchanan nor Keller Williams do not endorse any of the products or vendors referenced on this material. Any mention of vendors, products or services is for informational purposes only.