Monday, July 8, 2013

March 17, 2013

Title Company Fees

I have gotten quite a few questions about how to choose a title company and the different fees they charge so I figured I would do a post on it for anyone who has any questions. In the state of Maryland it is a law that buyers have the right to choose their own title company unless it states in the sales contract otherwise. As a Realtor, I have done business with many different title companies and they all have different fees and of course different customer service. When looking for a title company I would suggest asking your friends, family and agent if you have one who they use. Customer service is a big thing and referrals help you find a great company. After you have a few companies call them up and ask what their closing fees are? This includes title charges, attorney fees and title insurance policies. There are certain fees that are standard no matter what company you use these fees are charged by the state and county that you live in, these fees include your recording fee, County/State Transfer tax, County Document stamp and location survey. The title charges are different with every company these are the fees that you can get changed if you push hard enough. And a fee that you can look at removing all together is your owners title insurance policy, this policy safe guards you if someone comes back and says they own your house or if a lien is on your house that the title company didn't find in the title search, but with a new build as long as your builder didn't steal someone's land you shouldn't have any issues. I have waived this policy on my own homes in the past, this can save you a few hundred dollars depending on what the title company charges. But please do some research on this don't just take my word for it!

For example the title company that my builder wants me to use is trying to charge us $1575 for attorney fees, the title company I want to use charges $625 that is a $950.00 difference!!! See this is why you have to shop around and get companies to match prices or find the best deal for you!

Also remember that you can talk to your lender to reduce some of their fees, such as their processing fee and application fee. Your lender should have given you a worksheet of estimated costs, if not ask for one, this will break down all the fees even your property taxes, it allows you to see how much you would need to bring to the table when closing.

Another area that you can try to reduce some costs is in your homeowners insurance, shop around get quotes for a few different companies and make sure you aren't missing out on any great deals. Don't just go with the same company that you have your car insured with.
If you have any questions ask your agent, if you don't have one feel free to email me privately and I can try to answer them. Good luck shopping for a title company!

No comments:

Post a Comment