Palm Beach Real Estate and Loans

Following up on yesterday's post, today we have the second part of Todd Chandler's (Guarantee Title) explanation of Title work:

What does Title Insurance Cost?
The cost is usually directly related to the value of the property. The higher its value, the more coverage is needed and the higher the title insurance premium. Unlike most insurance, the title insurance premium is paid only once and remains in force for as long as the property is owned by the insured and continues to protect the insured on warranties after it is sold. Generally, in Florida the cost of an owners title insurance policy is $575 on the first $100,000 and $500 for every $100,000 thereafter. For example on a property valued at $150,000 the title insurance would cost $575 + $250 for a total of $825. The premium is relatively inexpensive compared to the total purchase price of a property.

Who Pays for Title Insurance?
Generally, in Palm Beach County (and most of counties in Florida) the seller pays for the more expensive Owners Title Policy.  The buyer then usually pays for the smaller Lenders Policy. In a few counties (like Broward County) the buyer usually pays both, so be sure to check with the real estate or mortgage professional to make sure you understand which party is paying what. This information should be part of the standard real estate contract and could mean thousands of dollars in closing costs.

Who Picks the Title Insurance Company?
In Palm Beach County (and most of Florida), the seller usually through their agent will pick the title insurance company whereas in Broward County the buyers side of the transaction will decide.

Are all Title Companies the Same?

Not by a long shot! This would be like saying every real estate agent or loan officer is exactly the same. Although the services that title companies offer are very similar on paper, there can be a wide margin of difference from one company to the next.

• Pricing Most Florida title companies charge the same for the promulgated title premium for the Owners title policy, but the similarity ends there. The total amount of fees you are charged can differ by hundreds or even a thousand dollars or more depending on the company. It is very important to review and compare the title companys fees with another bid, or at least discuss these fees with your chosen company. They dont call them "junk fees" for nothing! Many companies load you up in unnecessary charges and you or your clients pay much more than you should.
• Service This can mean different things to different people in the real estate transaction. For a realtor and loan officer, service might mean a fast and smooth closing, with no delays or problems. For the buyers and sellers, it might mean the friendliness of a closing agent or the ability to close the transaction at their convenience and location. Service can be an evening or weekend mobile closing in your home or office, where a relaxed atmosphere can be enjoyed. Whatever your definition of service is, you are paying enough to get exactly what you want!