But It Is Likely NOT What You Think!
When a real estate transaction is reaching its conclusion, the homebuyer is going to be asked to write checks made out to the title insurance company providing the policy for their new property.
At times, because the numbers may be quite large, there may actually be a modicum of anger at the title company that could be perceived as making too much money on the deal.
The reality is actually much different, however, as the title company is collecting a variety of funds that are actually going to be sent to other entities to pay for a variety of taxes and fees.
The truth is, that the actual amount that the title company is receiving in a one-time premium (which varies by purchase price and mortgage amount) can be under 10% of the total.
Using the New York City purchase example in the chart, the checks written at the closing will total $111,533.
The title insurance premium portion, or the amount of money that will pay for the policies both for the owner and lender, is $9,923.
This amounts to 9% of the total being collected with 91% of total going for the benefit of state and local government entities.
The bottom line is that when you get a title bill from the title company being used, speak to your attorney to insure that you completely understand the bill, its components, and who will be receiving what when you write the checks at the closing table.
Title insurance, critically important to protect the new buyers, is much better understood when looked at in chart form, the way it’s presented above!
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If You’re Buying Commercial Or Residential Property In New York State, You MUST Protect It…That’s Where Title Insurance And Due Diligence Comes In!
Do Some Research Concerning The Title Insurance Provider That Will Be Used For Your Real Estate Purchase In New York!
Watch ‘If You’re A Homebuyer In New York You MUST Protect It…That’s Where Title Insurance And Due Diligence Comes In!’ here https://youtu.be/jZuTNUhwHuc.
And remember that it’s your RIGHT to choose the title company you would like to use!
Hallmark Abstract Service…You Buy Real Estate, We Protect It!
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Thank you for breaking that down!
Absolutely Tina. And if you have any questions please let us know at info@hallmarkabstractllc.com or give us a call at (646) 741-6101.